Joana Cotar, an independent member of the Bundestag, one of Germany's legislative chambers, has called on the government to stop the current bitcoin (btc) sell-off, which has It had a remarkable impact in the btc market, resulting in a 10% drop in the price of the cryptocurrency over the past two weeks.
bitcoin, a valuable asset class for the state treasury
in a bitcoin-im-bundestag.de/bitcoin-strategien-fuer-nationalstaaten/” target=”_blank” rel=”nofollow”>letter Addressing the government, Cotar emphasized that btc has gained recognition as a genuine asset class and a promising investment for the future due to its remarkable price rise.
The lawmaker noted that traditional financial institutions now view bitcoin as a real asset with properties similar to “digital gold,” making it suitable for state treasuries.
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Cotar noted that governments around the world are re-evaluating bitcoin to encourage innovation within the ecosystem or enforce stricter regulations on bitcoin ownership and transactions. However, he acknowledged that understanding the benefits of bitcoin can be challenging for individuals, and the same applies to governments and politicians.
Cotar stressed that a well-designed bitcoin strategy has the potential to reshape a country’s development, foster economic prosperity and safeguard the fundamental human freedoms of all citizens. As btc continues to gain acceptance globally, she believes more nations will consider integrating it into their financial and economic systems.
Interestingly, Cotar outlined several advantages the German government would have by holding onto its bitcoin holdings rather than selling them.
btc Strategy for Germany
First, including bitcoin in the treasury alongside traditional fiat currencies and gold reserves diversifies a nation’s assets, reducing the risks associated with overexposure to a single asset class.
Secondly, the lawmaker highlighted the scarcity and deflationary nature of bitcoin, making it an attractive alternative for wealth preservation. By keeping bitcoin as part of the National TreasureCotar believes the government can protect national reserves from inflation and currency devaluation beyond its control.
Additionally, Cotar highlighted that including bitcoin in the treasury can improve the overall performance of the portfolio, as several studies have shown that bitcoin's risk-adjusted returns exceed those of traditional investments such as stocks and bonds over the long term.
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Cotar, which has long been a bitcoin-as-legal-tender-joana-cotar-of-german-bundestag-proposes-groundbreaking-legislation-in-germany/” target=”_blank” rel=”nofollow”>proponent of making bitcoin legal tender in Germany through appropriate legislation, he further argued that developing a favorable regulatory framework for all bitcoin-related activities can open doors for new business and technological progress, while paving the way for further economic development in the country.
Cotar concluded by emphasizing that a bitcoin-friendly legal framework will promote research and development in the financial and technological sectors, attract top talent, and foster collaboration between private companies. government institutionsand the scientific community.
The sell-off continues and puts pressure on the btc price
It should be noted that the German government sold another batch of confiscated btc worth over $175 million on Thursday. According to x.com/ArkhamIntel/status/1808796105657684284″ target=”_blank” rel=”nofollow”>data According to market intelligence platform Arkham, German authorities still hold 40,359 btc worth around $2.3 billion.
This, coupled with the US government selling its bitcoin holdings, caused btc to drop to $56,700 on Thursday. However, the market’s largest cryptocurrency, which has seen a 17% price drop over the monthly timeframe, has recovered to its current price level of $58,300.
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