I think this is the best publicity imaginable. I can't see any reason why the price wouldn't go through the roof over the next month, but bitcoin prices are tough to predict.
(2) Having the US government treat bitcoin as an auctionable asset undercuts naysayers who say bitcoins are "tulips".
(3) We have a precedent with the original seizure leading to a bitcoin rally.
(4) The US government is now acting as a sort of "bitcoin exchange". This auction will give new actors a way to enter the bitcoin market without certain legal uncertainties.
If you compare to his other comment on this page, I'm pretty sure he's joking, and taking the "this is actually good news" meme to its natural crazy end.
That's kind of why I asked. Although I have no Bitcoin assets, if I did I was thinking that it could go either way.
It could help legitimize the coin, for some definition of legitimize, or it could tank the price if people feel a sizable chunk of those coins are going to be sold at discount.
It did tank ~10%, but maybe we will see a rally in the weeks to come?
