Amid the confusion surrounding the possibility that the United States will sell nearly 70,000 bitcoin (BTC) seized from Silk Road, a scenario is emerging in which, if the sale is carried out, the US would be surpassed by China in the amount of BTC in custody.
Currently, the United States holds over 198,000 BTC, while China is only 8,000 coins away. If the US decides to sell Silk Road’s 70,000 BTC , it would automatically become the second largest bitcoin holder, allowing China to dethrone its place.
China could dethrone the United States' leadership in bitcoin holdings. Source: BitcoinTreasuries.
This morning, the US has the green light to sell the more than 69,000 BTC seized from the fallen marketplace Silk Road. This judicial authorization comes from a recent decision by a federal judge, opening the door to a possible sale.
The sale of these 70,000 BTC could have a significant impact on the bitcoin market. Introducing such a large amount of BTC into the market could generate considerable selling pressure, which would likely lead to a decrease in the price.
This is because supply would suddenly increase, while demand might not keep pace, creating an imbalance that often puts downward pressure on prices.
Silk Road was a notorious black market on the dark web, operating between 2011 and 2013, where everything from drugs to illegal services were sold, using bitcoin as a payment method. Its founder, Ross Ulbricht, was arrested in 2013 by US authorities.
Ulbricht was sentenced to life in prison without the possibility of parole on charges including conspiracy to commit money laundering, conspiracy to distribute drugs and conspiracy to hack computers.
The Silk Road case has been one of the most resonant in the cryptocurrency ecosystem , marking a before and after in the surveillance and regulation of cryptocurrency transactions.
The debate over what to do with the seized bitcoin has been intensified by recent statements from President Donald Trump.
Trump has expressed interest in keeping these BTC in US custody, with the intention of creating a national reserve which could change the course of this sale and further position the United States in the global cryptocurrency market.
