Germany’s recent Bitcoin (BTC) selling spree has come under fire from lawmaker Joana Cotar. She argues that the government should be holding, or “HODLing” in cryptocurrency parlance, their Bitcoin reserves instead of selling them.
Cotar’s criticism stems from a series of transactions where the German government offloaded a total of 1,300 Bitcoin to major cryptocurrency exchanges. This move coincided with a dip in Bitcoin’s price, raising concerns of a potential correlation.
Government Sell-Off Raises Concerns
The German government’s frequent transfers of Bitcoin (BTC) have caused unease among cryptocurrency enthusiasts. Earlier this week, news broke of a $76 million Bitcoin sell-off, with portions going to Bitstamp, Coinbase, and Kraken. This significant liquidation pushed the price of Bitcoin below $58,000, raising fears of a further decline.
A Lawmaker Calls for Change
Independent Bundestag member Joana Cotar took to Twitter to express her disapproval of the government’s actions. She called the move “counterproductive” and urged officials, including Chancellor Olaf Scholz and Finance Minister Christian Lindner, to stop selling Bitcoin(BTC).
Cotar views Bitcoin as a valuable asset for diversification and a hedge against inflation due to its limited supply. She believes it can mitigate risks associated with traditional investments and excessive exposure to fiat currencies. She even extended an invitation to a forthcoming lecture featuring Bitcoin advocate Samson Mow, hoping to sway government officials.
Bitcoin’s Growing Appeal as an Inflation Hedge
Cotar is not alone in her perspective. Jeremy Allaire, CEO of financial technology firm Circle, has previously highlighted Bitcoin’s growing popularity as a hedge against global economic instability. Similarly, Anthony Scaramucci of SkyBridge Capital has argued for Bitcoin’s role as an inflation hedge, citing its fixed supply and long-term value storage potential.
The Debate Continues
While Cotar and others see Bitcoin as a valuable asset, critics like Peter Schiff of the gold advocacy group SchiffGold point to Bitcoin’s slow transaction speeds and high fees as roadblocks to widespread adoption. The debate surrounding Bitcoin’s role in government portfolios and its effectiveness as a hedge against inflation is sure to continue.