How Germany Sold 50,000 Bitcoin Too Soon, Missing $5 Billion Opportunity
Germanys decision to sell approximately 50,000 Bitcoin (BTC) earlier this year has become a costly mistake. The cryptocurrencys price has now soared past the $100,000 mark, costing the country an estimated $5 billion.
The sale of the confiscated assets, which began in June, is now being questioned as the price of Bitcoin continues to rise. In a tweet on Thursday, MicroStrategy founder Michael Saylor, who had previously warned against selling the cryptocurrency, reflected on the missed opportunity.
You do not sell your Bitcoin, Saylor tweeted on Thursday, echoing the growing frustration among critics who saw Germanys decision as a misstep.
Notably, German authorities seized the Bitcoin in question from the notorious pirate site Movie2k in January 2024. The Federal Criminal Police Office (BKA) had nearly 49,860 BTC in its custody, valued at approximately $2.9 billion at the time, before proceeding to sell the cryptocurrency over several months.
The sell-off began in June, with small amounts of Bitcoin being liquidated, and by early July, the authorities had completed the sale of the entire stash. Following the last sale, Joanna Kotar, a member of the German Parliament, had expressed doubts about the urgency of the sale, arguing that the risk of a value drop was minimal. Kotar had even criticized the sale, suggesting that it was unnecessary given the market conditions at the time.
Samson Mow, CEO of JAN3, had, however, pointed out that Germany had little choice but to liquidate the assets due to the regulatory framework. He also suggested that the country could have taken a longer-term approach, emphasizing the need for a national Bitcoin adoption strategy. We must draw up a concrete plan for Germany to re-acquire at least 50,000 BTC, Mow stated.
Interestingly, the missed opportunity sharply contrasts Germanys recent efforts to embrace Bitcoin. In September, Germany established the Bitcoin Federal Association, aiming to promote Bitcoin adoption at the national and European levels.
Meanwhile, this regret comes as the US has taken a different approach with its own seized Bitcoin. Earlier this week, US authorities transferred 10,000 BTC, worth approximately $2 billion, linked to the Silk Road darknet marketplace to Coinbase.
This move, part of a broader plan to liquidate 50,000 BTC seized from Silk Road hacker James Zhong in 2022, has drawn significant condemnation from the crypto community. Critics are hopeful that with the impending swearing-in of pro-Bitcoin President Donald Trump, such decisions could be reversed, as calls for a U.S. national Bitcoin reserve strategy gain traction.
Read more: https://zycrypto.com/how-germany-sold-50000-bitcoin-too-soon-missing-5-billion-opportunity/
Text source: ZyCrypto
