The United States General Services Administration (GSA) auctioned off 0.7501 Bitcoin for over $9,000 its market value.
This first-ever auction by the US government of a cryptocurrency saw bidders pushing up the price of the coin over two days.
The portion of the bitcoin sold for $53,104. This provided the GSA a small profit as the coin’s market price was sitting around $44,000. This is already an increase from the $38,000 when the administration announced its auction.
The auction kicked off at $25,000, with bids coming from 31 anonymous bidders.
This was among the more exciting bids for the GSA. Most of the auctions it hosts feature mundane utility objects like office supplies and furniture.
The administration didn’t reveal where the partial Bitcoin came from. The items put up for sale by the GSA come from several sources. These include both federal and personal property.
Indication of Increased Bitcoin Acceptance
It is hard to say this is an outright endorsement of bitcoin by the US government. However, it is an encouraging nod towards acknowledgment of BTC’s value.
While the US government is still unclear on its stance on regulations, this auction’s success and the current institutional support wave may help get the government on board with cryptocurrencies.
Bitcoin’s current boom has been looked to as a source of confirmation of its bright future by analysts and enthusiasts. It is estimated that it will pass $100,000 by 2022.
Increased investor interest is also lending more mainstream respectability to the crypto market. Big buys by investors like Michael Saylor and Elon Musk continue to help fuel the current Bitcoin wave.
Traditional banks like JP Morgan and Goldman Sachs re-investing in cryptocurrencies is also a promising sign.
Risks still A Concern
While these small moves by the government may indicate what’s coming, on paper, the US government is still wary of cryptocurrencies.
A 2020 survey of governments, banks, and other financial institutions showed these entities still consider crypto a risky investment.
While expecting the market to grow, there were still concerns around its use for criminal activity and lack of central oversight.
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