This week in bitcoin: Price falls as feds announce auction of seized Silk Road bitcoin


Gigaom

In this week’s bitcoin review, we take a look at how the auction of Silk Road bitcoins is causing the price of bitcoin to tank.

Back below $600

Yesterday we saw the double-edged sword of bitcoin: its transparent ledger, but not-so-transparent accounts.

Back in October, the federal government seized nearly 30,000 bitcoins from the coffers of the Silk Road, an online black market infamous for its use of bitcoin to facilitate illegal purchases, after it arrested its alleged owner Ross Ulbricht. A judge subsequently ruled in January for the forfeiture of the coins, allowing the US to sell off the 29,655 bitcoins. While it’s been expected for awhile that the bitcoins would be auctioned, likely by the U.S. Marshal’s Service, there had been no activity on the account — until yesterday.

Thanks to bitcoin’s public ledger, the blockchain, every transaction is listed with the address of the sender and receiving…

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