Germany Dropped The Ball | Bitcoin Backstage w/ Joana Cotar

Germany's decision to liquidate its Bitcoin holdings, worth over $2.8 billion in 2024, is a missed opportunity amidst economic challenges and growing debt. The country's failure to grasp Bitcoin's long-term value as a monetary asset, instead viewing it as a speculative asset, contrasts with other nations adopting Bitcoin as a strategic reserve. This decision highlights the need for a comprehensive Bitcoin strategy within Germany, advocating for retaining confiscated Bitcoin as a reserve and exploring various adoption paths, including utilizing it as a store of value or issuing Bitcoin-backed bonds.

Germany's Bitcoin Sale

• 00:00:07 Germany has sold over $2.8 billion worth of Bitcoin in 2024, despite facing a growing debt of over 2.45 trillion euros. This decision comes at a time when the country needs economic innovation and resilience. The government's choice to liquidate such a valuable asset to address short-term issues is seen as a missed opportunity by some.

Bitcoin's Monetary Value

• 00:01:27 Germany and many countries do not understand Bitcoin's low time preference and long-term value as a monetary asset. Instead, they view Bitcoin as a speculative asset, similar to other bubbles, missing its potential as a generational asset like gold. The speaker emphasizes the need to accumulate Bitcoin rather than liquidate it.

Bitcoin's Role in Freedom

• 00:05:01 The speaker refers to Bitcoin as a 'freedom currency' or 'freedom tool,' highlighting its potential to empower individuals against government overreach and censorship. She provides examples such as the Canadian trucker protests where Bitcoin was used to bypass traditional financial systems, emphasizing the ability of Bitcoin to give individuals back their sovereignty.

Germany's Bitcoin Strategy

• 00:06:00 The speaker advocates for a national Bitcoin strategy in Germany, suggesting that the government should retain Bitcoin confiscated from criminals as a national reserve. She further suggests various options for Bitcoin adoption, such as making it legal tender (though unlikely in the short term), utilizing it as a Federal Reserve store of value, or even issuing Bitcoin-backed bonds or mining Bitcoin as a nation.

Obstacles to Adoption

• 00:04:30 The speaker believes that the biggest obstacle for European governments adopting Bitcoin is fear. Europeans tend to focus on the risks of new ideas like Bitcoin, focusing on regulation and security rather than the potential opportunities. She suggests that a shift in perspective is needed to embrace Bitcoin's potential benefits.