The South Korean Government Sells a Large Number of Confiscated Bitcoins


Hong Kong, China -- (ReleaseWire) -- 04/15/2021 --In March 2021, according to relevant news from ZB, the South Korean government sold a confiscated bitcoin. The money was valued at more than 10.8 million U.S. dollars at the time of sale. It was confiscated from a criminal who engaged in pornographic websites in 2017. The profits have been deposited into the South Korean treasury.

In the inquiry of relevant information, it was found that the bitcoin was confiscated by the South Korean government from an unhealthy website operator named Ahn, with a total of 191.32333418 pieces. According to the relevant report of Yonhap in 2018, the South Korean procuratorate will hand over the proceeds from the sale of the bitcoin to the Ministry of finance.Onbid, an online property trading system owned by Kamco, is responsible for the auction of the bitcoin.In early 2018, the bitcoin was worth 28 million won, or about $28000, while the proceeds from the sale of the bitcoin in March 2021 exceeded $10 million.

Bitcoin's "a slap in the face" behavior

In the Internet era, people describe that they don't want something, but their bodies honestly accept it, which is called "Zhenxiang". In the relevant policies of some rights institutions on digital assets, "Zhenxiang" still applies.

On the one hand, digital assets represented by bitcoin are inherently monetary, which has set the tone when Nakamoto founded bitcoin and bitcoin network.Blockchain itself is to solve the "point-to-point" non trust "value exchange" in the Internet. It is a trust based "currency" in the Internet.

It is the unique "currency" attribute of bitcoin, rather than the decentralized mode of trust, that makes governments around the world very resistant to it.Because it has the property of currency, it may threaten the status of legal currency, and decentralization makes it impossible for the government to carry out thorough supervision over special currency.

For example, the current Federal Reserve has been releasing more dollars to promote trade and stabilize the domestic economy.We need to know that currency is equivalent to the certificate of all the labor achievements of the people of the country endorsed by the authority.Only when the productivity is improved or the people's labor achievements are accumulated, can there be a reasonable space for issuing more money.Too much money or deliberately less money will lead to the rise or fall of prices, and the rise and fall of prices will ultimately be borne by all citizens of the country.

The Fed's excessive "throwing money" behavior of issuing additional currency is not based on the economic growth and productivity improvement of the U.S. citizens, but purely printing money, which will inevitably lead to the dilution of the value of the U.S. dollar, and the diluted value of the U.S. dollar will also affect the original U.S. dollar.Then, all those who originally held dollars would suffer visible or invisible losses due to the Fed's over issuance of money.

Only when the American people bear this kind of loss, can the government manage smoothly.However, if people generally no longer use US dollars but use bitcoin instead, they will not be able to issue additional bitcoin, nor will they be able to supervise and control the value of bitcoin. Under this situation, the U.S. authorities will not be able to obtain benefits from the additional issuance of bitcoin, and naturally they will no longer be able to carry out "smooth governance".

Of course, the United States and the Federal Reserve are just one example, and the South Korean government is also considering the same. Therefore, the authority will hardly allow bitcoin or other cryptocurrencies to flow into the market in large quantities without its full control.However, the value represented by digital assets is what these centralized institutions are not willing to give up.

Therefore, there is the "truth" behavior of the South Korean government in the face of "all kinds of bans" on cryptocurrency, while selling the bitcoin to fill the Treasury.

Opportunities behind

Behind the sale of the bitcoin by the South Korean government is a thought-provoking problem, that is, from the perspective of centralized institutions, bitcoin and other digital assets are valuable, or more generally, valuable.

Since the government can participate in the transaction of decentralized digital assets, it indirectly shows the applicability and cognitive breadth of digital assets.This represents that more and more government actions in the future will be inextricably linked with digital assets.The "value" of digital assets will also be deeply rooted in the hearts of the people.

As long as there is a "consensus" on behalf of the "value" of digital assets, it is precisely this common understanding of the "value" of digital assets that will make digital assets more widely used in everyone's life.

Although some commentators believe that South Korea's selling of BTC will cause some fluctuations in the currency market and lead to a drop in the currency price.But in the long run, this is exactly the key to further enhance the value of bitcoin.

At the same time, it is also the beginning of the real participation of digital assets in the circulation of social value.

Almost predictably, there will be more and more digital asset transactions involving the government, and more and more digital asset transactions led by bitcoin will be put on the table.

About Bctype
Bctype is a media dedicated to blockchain information and market analysis.