According to Laureate Trust, Bitcoin will be extremely volatile until the sale of $18 million in Bitcoins seized from Silk Road is finalized.
Beverly Hills, CA -- (SBWIRE) -- 06/13/2014 -- Laureate BVI reiterated a buy on Bitcoin on 05/22/14 when it was priced at US$522.57 as an opportunity to buy the alternative currency that could increase 50 per cent in price in the near-term as it threatens to overtake PayPal in transactional volume for the first time 2014.
Laureate reports, the recent drop in Bitcoin is due to the upcoming auction of the seized Bitcoins of Silk Road. The auction will take place during a 12-hour period on June 27, the Bitcoins will be auctioned in nine blocks of 3,000 Bitcoins and one block of 2,657 Bitcoins. The winning bidder will be notified June 30th.
CEO Peter Tasca of Laureate Trust states, “The block auction of Bitcoins is directly aimed at Institutional Investor such as hedge funds and Bitcoin exchange providers. To participate in this auction the buyer will need to deposit US$200,000.00 and pay nearly US$1.8 million per block.”
Tasca adds, “Everyone in Silicon Valley is talking about Bitcoin as the next big thing, I would not be surprised if Paypal became a bidder for the blocks of Bitcoin.”
John Donahoe, President and CEO if eBay parent company of Paypal stated, “I think there’s no doubt digital currency is going to play an important role going forward, and at Paypal, we’re going to have to integrate digital currencies into our wallet.”
“In the next one or two years, Bitcoin can surpass the dollar transaction volumes of other established payment companies including Discover, and even American Express, MasterCard, and Visa,” stated SmartMetric CEO Chaya Hendrick.
Laureate reports, the reason we are seeing a steep sell off in Bitcoin is due to the buyer is most likely going to offer a discount to the tranche, we expect the discount will be 5%-10% below the average daily price the day of auction.
Tasca states, “This auction is significant for Bitcoin, this is the first time the digital currency is being validated by a government. The only transactions to date have been peer-to-peer, now the United States government is accepting payment for the digital currency.”
About Laureate Trust
In 2013, Laureate Trust received the prestigious award in Finance by the US Institute for Excellence in Commerce. Last year this multiple platform strategy returned +23.01% net of all fees which has outperformed the Barron’s Top 100 Hedge Fund Average, Barclayhedge Fund Index Average and the S&P 500 Total Return Average.
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