- German lawmaker Joana Cotar criticizes government’s Bitcoin sales, urging retention to bolster national financial strategy.
- Recent transactions show the German government sold about 1,300 Bitcoins, sparking market concerns as prices dipped.
German lawmaker Joana Cotar has criticized her government’s frequent sales of Bitcoin, urging a shift towards holding the digital currency instead. This plea comes amid recent actions by the German government, which has transferred significant amounts of Bitcoin to various cryptocurrency exchanges.
Statt #Bitcoin als strategische Reservewährung zu halten, wie es in den USA bereits debattiert wird, verkauft unsere Regierung im großen Stil. Ich habe @MPKretschmer, @c_lindner & @Bundeskanzler @OlafScholz darüber informiert, warum dies nicht nur nicht sinnvoll, sondern… pic.twitter.com/v9FpzmfLbp
— Joana Cotar (@JoanaCotar) July 4, 2024
On a recent Thursday, reports by ETHNews from blockchain analytics firm Arkham Intelligence revealed that the government sold approximately 1,300 Bitcoins. These transactions included 500 BTC sent to Bitstamp, 400 BTC each to Coinbase and Kraken, totaling nearly $76 million in sales.
The price of Bitcoin experienced a decline below $58,000 shortly after these transactions, sparking fears of further price drops among investors and cryptocurrency trader. Cotar, an independent member of the Bundestag, expressed her dissatisfaction directly to key figures such as Michael Kretschmer, deputy chair of the CDU, Christian Lindner, Federal Minister of Finance, and Chancellor Olaf Scholz.
She labeled the government’s frequent Bitcoin sales as “counterproductive” and emphasized the potential of Bitcoin to diversify investment portfolios and reduce risks associated with traditional assets.
Moreover, Cotar highlighted Bitcoin’s attributes as an investment that can mitigate exposure to fluctuations in traditional financial systems. She is also promoting these ideas in an upcoming lecture, scheduled for October 17, which will feature Bitcoin evangelist Samson Mow as a speaker.
Additionally, the view of Bitcoin as a valuable hedge against inflation and currency devaluation is gaining traction among various financial experts.
Bitcoin’s inherent scarcity and its potential as a long-term store of value have been recognized by figures such as Jeremy Allaire, CEO of Circle, and Anthony Scaramucci of SkyBridge Capital.
These experts argue that Bitcoin’s fixed supply and the ability to preserve value make it a robust hedge against global economic uncertainties.
This ongoing debate also involves critiques from proponents of traditional assets like gold, with figures such as Peter Schiff pointing out Bitcoin’s limitations regarding transaction speed and costs.
However, advocates like Scaramucci continue to support Bitcoin’s role as a sustainable investment alternative, especially in times of economic instability. This discourse underscores the complex perspectives on Bitcoin’s role in both public sector finance and private investment strategies.
