A year ago, Germany sold 50,000 bitcoins, completely liquidating its stock. In the meantime, the BTC price has doubled and a similar reported more than $ 6.64 billion.
This example could provide an edifying story useful to leaders around the world. Even if a government is determined to liquidate its assets, a few delays could have brought much greater yields in Germany.
Germany has lost billions
From time to time, various global governments are sometimes found to hold large amounts of Bitcoin.
Generally, this takes place after seizing the assets of the criminals, but other methods are also present. Last year, Germany seized 50,000 bitcoins in an anti-pirate bust, but made the controversial decision to sell them all in July 2024.
Almost exactly a year later, this decision seems extremely unhappy. Germany has sold this bitcoin for $ 3.13 billion, but the price of the asset has come out of the graphics since. Compared to last July, the BTC actually doubled.
If the nation had 50,000 BTCs to sell today, it would earn more than $ 6.64 billion. Instead, its portfolio contains only 0.0069 BTC, which was accumulated from anonymous users giving tiny quantities.
The sale resembles an even more uncompromising error because Germany today is not particularly anti-Crypto. The country currently issues more mica licenses than any other member of the EU, which means an active local industry.
However, the nation has struck up a huge windfall. So what lessons can the world learn from this?
Overall, 2024 was a bad year for governments that undress from crypto. Several nations, such as El Salvador and Bhutan, deliberately accumulated Bitcoin, while Germany has tried to get rid of it.
Under President Biden, the United States has also started to liquidate its assets. Between these two nations and Ukraine, which also carried out a complete liquidation, public reserves fell 12%.
However, even the partial liquidation of Biden proved to be influential, because it motivated President Trump’s push for a bitcoin reserve. The other two main national holders, China and the United Kingdom, have not acquired or eliminated assets last year.
Although these nations do not have an established formal reserve, their keen assets have nevertheless become much more precious.
All this to say, global governments should consider Germany’s decision if they enter huge amounts of bitcoin. Even if a political establishment is determined to liquidate, it may be prudent to postpone this as long as possible.
If the German government had followed the most common councils of each Bitcoin lawyer, Hodl, its economy could have brought back billions and potentially more in the future.
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