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Swedish Government Auctions Cryptocurrency Again

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The Swedish Enforcement Authority, Kronofogden, is once again auctioning off cryptocurrency that has been allotted for public sale. The online auction, which is the second of this kind the government agency conducts, starts on Friday, October 11.

Also read: Sean Walsh: Cryptocurrencies Can Harness More Human Energy

BTC Worth $37,000 Offered to the Public

The office of Sweden’s bailiff, the government debt collecting organization, offers potential buyers to acquire 4.59 BTC valued at around 370,000 Swedish krona, or approximately $37,700, according to the current exchange rate. That’s close to $8,200 per coin, while BTC is trading on cryptocurrency markets just below the $8,400 mark at the time of writing.

Kronofogden first auctioned bitcoins it had in its custody about two years ago, when the highest bid was placed at 43,000 Swedish krona. That was way above the market value of the cryptocurrency, which was then 27,600 krona, the Swedish outlet Di reminds. The sale was met with great interest.

Swedish Government Auctions Cryptocurrency Again

“Many people ask why we auction the cryptocurrency and we don’t exchange it ourselves. The answer is that there is no infrastructure that meets our requirements,” explained Johannes Paulson, a representative of the Swedish Enforcement Authority. “We have to do it in a quality-assured way to know the money isn’t going to be lost,” he elaborated as quoted in a press release.

There is a choice of platforms allowing users to purchase cryptocurrencies in a safe and secure way. But auctions conducted by government institutions also provide buyers with undeniable proof of the funds’ origin. In the absence of comprehensive regulations in many jurisdictions, buying crypto from the state is a safe option as the legality of the transaction cannot be questioned by the authorities.

Crypto Seized From Debtors

Sweden’s Kronofogden, or Kronofogdemyndigheten as is its full name, is responsible for debt collection, distraint, and evictions in the Nordic country. It is the only government agency authorized to withdraw money from debtors’ bank accounts and seize property. “As more people use bitcoin, the likelihood a debtor can also own the currency increases,” the announcement notes.

“Property can be found not only on driveways and in living rooms, but also on the internet. Nowadays, we are looking for assets in computers and hard drives as well as in phones and web services,” Johannes Paulson explains. He emphasized that the foreclosure this time was conducted in close cooperation with the Swedish police. The fiat money from the auction will go to pay off the owner’s debts.

Swedish Government Auctions Cryptocurrency Again

Although Kronofogden encounters cryptocurrencies more and more often, the Crown Bailiff Authority admits it faces difficulties trying to get into encrypted wallets that store the digital coins. In order to achieve that, it relies on joint efforts with the Police Authority of Sweden and the Swedish Tax Agency, the official added.

When Kronofogden suspects that a debtor owns crypto, it works actively to find, evaluate and then sell the digital holdings to compensate the creditor. If the sale generates more than the amount of the debt, the surplus goes back to the debtor. Kronofogden is obliged to aim for the highest possible price for the assets it sells.

Would you buy cryptocurrency at a government-held auction? Share your thoughts on the subject in the comments section below.


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The post Swedish Government Auctions Cryptocurrency Again appeared first on Bitcoin News.

Sean Walsh: Cryptocurrencies Can Harness More Human Energy

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Bitcoin scores high in terms of ‘moneyness’ compared to other forms of money as it has some technical advantages and social inertia. In an interview with Bitcoin.com’s Humans of Bitcoin podcast, brilliant contrarian thinker Sean Walsh shared his opinion about cryptocurrencies and their place within the global financial system. The crypto investor believes decentralized digital money can utilize a greater percentage of human energy and help return our civilization to a more sustainable equilibrium.

Also read: Why Bitcoin Is Better Than Banks: Major Credit Card Breach Exposes 60M Accounts

Bitcoin Is Money, but What Is Money?

What backs Bitcoin, why is Bitcoin valuable, what is Bitcoin anyway – these are valid questions that mainstream market participants, Joe Sixpack on main street USA or China, are asking, early adopter Sean Walsh noted speaking to host Matt Aaron. “What I’ve learned is that people do understand Bitcoin. The confusing concept is money. Bitcoin is just a new kind of money you can use on the internet and on your phone. The question that matters is what is money,” Walsh emphasized.

Sean Walsh: Cryptocurrencies Can Harness More Human Energy

Bitcoin is money because it serves its primary functions – unit of account, means of exchange, and store of value, stated the CEO of Hyperblock, a company that runs a large crypto mining center in Missoula, Montana. Besides, it also scores the highest against other forms of money which in terms of “moneyness” can be evaluated according to several key characteristics such as scarcity, durability, divisibility, recognizability, fungibility, and transportability.

During the first part of his interview, Walsh elaborated that Bitcoin has certain technical advantages and social inertia that would hardly dissipate. The contrarian also likes what he describes as the dual monetary system that contains both bitcoin core (BTC) and bitcoin cash (BCH) and thinks it’s similar to the historical bimetallic monetary systems that were pretty popular throughout the antiquity. People and governments would use gold for central banking functions and inter-sovereign transaction settlement, and then use silver for retail type transactions.

Forest Fires Are Good for the Forest

Sean Walsh maintains that all the bailouts and the coordinated quantitative easing the world’s largest central banks undertook after the 2008 financial crisis were merely postponing the inevitable. He likens these efforts to the U.S. campaign to eliminate forest fires. “There was an accumulation of dead wood in the forest. And when you have an abundance of dead wood, a fire is inevitable,” the businessman pondered. Noting the similarities with business cycles, Walsh stressed:

It’s better to allow forest fires to occur more frequently because they end up much smaller and help eliminate all the dead wood.

The entrepreneur remarked that the deleveraging in the global economy is also inevitable. Walsh thinks there’s going to be a massive, global disruption on a scale that’s never been seen before, as the financial systems of the big countries around the world have never been so closely connected. “What’s going to happen now, if people continue to lose faith in the purchasing power of fiat currencies, is not a good outcome. And if we stop the quantitative easing, that’s even worse,” he warned pointing out that the only way to produce money in the current financial system is through the issuance of new debt.

There are two main options to attempt to overcome the challenges. The first one is to “inflate your way out of the problem,” which governments tried during the last crisis. Through printing more money, the purchasing power of fiat currencies is debased but it becomes easier to service and pay off the preexisting debt. The flipside of that, however, is called high inflation. The second choice would be to “deflate your way out of the problem,” by constricting the monetary supply which increases the purchasing power of fiat currencies. “The price of products goes down but you have a huge problem, the debt cannot be effectively serviced. You can end up with a deflationary debt spiral, which is a catastrophe for every entity and economy. So that’s not a great solution either,” Sean Walsh concluded.

Sean Walsh: Cryptocurrencies Can Harness More Human Energy

Bitcoin Offers a Third Way

Cryptocurrencies provide a third way forward and Walsh is excited by the possibility. His perspective is that their role is not to replace the incumbent banking and financial system, which is very good at many types of transactions like mortgages, for example. But cryptocurrencies such as bitcoin cash are facilitating new types of transactions that are currently impossible, like small instantaneous transactions over long distances. During the second part of the interview, the crypto entrepreneur insisted we need a form of money that facilitates the commerce that’s bound to erupt between all the people that can already communicate effectively thanks to emerging and improving internet tools.

A debt-based monetary system is unsustainable fundamentally if you have a declining population, like in the developed world, because you can’t keep issuing new debt safely if you don’t have an increasing population to support it, Walsh emphasized. But we don’t need a massive increase in the population to have more economic activity, if we can capture more of the human energy from the static population that we already have, the contrarian revealed. Cryptocurrencies can facilitate an increased capture rate allowing our civilization to harvest a larger percentage of the human energy. In that, Bitcoin can actually be the way to get rid of the huge overhanging debt, despite the demographic problem. Besides, as Sean Walsh put it, “The rising tide lifts all boats.” Check the entire discussion with Sean Walsh below.

What’s your opinion about the place of cryptocurrencies in the global financial system? Let us know in the comments section below.


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