German economy struggles while selling crypto

[NotATether]

https://stacker.news/items/605591

It is no longer news that the government of Germany is offloading tens of thousands of bitcoins that it has seized over the years related to illegal activity such as drugs and stuff like that, but meanwhile, what most people outside Germany are not seeing is the image of a struggling economy.

In my opinion, I think it is useful to see the hard numbers associated with this in order to back up this evidence.

Germany, the powerhouse of the Eurozone, is grappling with a significant wave of insolvencies. Years of zero-interest-rate policies have fostered a fragile economy that buckles under even minor interest rate hikes. Compounding this are stringent regulations, the political battle against conventional energy sources driving up energy costs for businesses, high tax rates, and a generally investment-unfriendly environment. Here are the latest figures:
The number of insolvency filings in Germany rose by 6.3% in June compared to the same month last year, according to preliminary data from the Federal Statistical Office (Destatis). This follows a 25.9% increase in May. From June 2023 to May 2024, double-digit growth rates were observed, with June 2024 marking the first single-digit rise.

As you can see, these policies, which have nothing to do with crypto by the way, are hurting Germany's economy and are causing businesses to close down.

[Stompix]

Meanwhile:
https://www.dws.com/insights/cio-view/asset-classes/cio-special-05282024/

With the publication of the GDP figures for the first quarter, Germany's economic turnaround became more or less official. Not only did the economy grow better than expected, at 0.2% from the previous quarter, but the figures for the first three quarters of 2023 were revised upwards.[3] This means that, according to current estimates, the German economy did not shrink last year, but merely stagnated, which also corresponds to our initial forecast. Our estimates for 2024 are also above those of the consensus. For the full year we see average annual growth of 0.4%, above the consensus of 0.1%. We also expect growth to pick up during the year – in the fourth quarter of 2024 we see 1.3% year-on-year growth, double the consensus forecast of 0.6%

I tell you, if there are two things that died more times than Bitcoin is the us dollar, the Us army and the German industry!
If Germany is struggling with an inflation of 2.2% I would love to hear some opinions about Argentina and Turkey!

But I get it, everyone is butthurt because the move made the price go down so now it's time to find fault, I believe the 4th Reich also lost the war because they hated Bitcoin,right? 

[TomPluz]

As you can see, these policies, which have nothing to do with crypto by the way, are hurting Germany's economy and are causing businesses to close down.

I am sure that the same malady that affected the Biden administration of USA is the same one that created havoc in the Germany's economy...woke ideas that are really radical produced unexpected results like making doing business a lot harder as the costs of everything shoot up to the roof under a heavily regulated environment allowing limited leeways for businesspeople to grow more which in turn resulted into shrinkage in different areas of the country. Germany has had been struggling for some years and this should not be because where Germany goes so does the whole of the Eurozone. At any rate, I still beleieve that eventually Germany will get back to its feet and claim back its status as the powerhouse of Europe eventually becoming once again the hug of growth like in the past decades. Yes, this topic may not directly related to cryptocurrency but we should note that Germany is considered to a lot friendlier to the crypto industry than other countries and so with a good economy am sure there will be more impetus for people and institutions to adopt cryptocurrency.

[hugeblack]

I tell you, if there are two things that died more times than Bitcoin is the us dollar, the Us army and the German industry!
If Germany is struggling with an inflation of 2.2% I would love to hear some opinions about Argentina and Turkey!

+1, I do not like reports that talk about the macroeconomy from the perspective of one event. The economy, especially for a country like Germany, will not be affected by Bitcoin, and we must realize that even though the market capacity is more than a trillion, Bitcoin is still a secondary player in economic variables.

[yhiaali3]

Germany sold all of its confiscated Bitcoin over the past years and completely emptied its wallet. The Bitcoin community does not care about the real reason behind Germany selling such a huge amount, but what matters to them is the negative or positive effects.

The good thing is that the negative impact was limited and temporary, although some weak people got scared and sold and this caused the price to fall slightly, but the market came back and absorbed the wave completely and we are now seeing a very good recovery, contrary to what was expected.

This is the most important thing for us that the Bitcoin market has become so strong and large that it will not be affected by the sale of all these huge quantities.

[hugeblack]

Germany sold all of its confiscated Bitcoin over the past years and completely emptied its wallet. The Bitcoin community does not care about the real reason behind Germany selling such a huge amount, but what matters to them is the negative or positive effects.

These are for legal reasons that prevent the government from keeping confiscated assets, and this has happened several times. The good thing is that sometimes these laws do not force governments to sell cryptocurrencies in a short period or to a single buyer, so they often take place in auctions and their price is often much lower than the exchange rate.

[Zed0X]

My question is when will they see the effect of selling those billions worth of BTC to their economy? The influx of tourists because of the recently concluded EURO 2024 probably boosted their economy too.

[yhiaali3]

These are for legal reasons that prevent the government from keeping confiscated assets, and this has happened several times. The good thing is that sometimes these laws do not force governments to sell cryptocurrencies in a short period or to a single buyer, so they often take place in auctions and their price is often much lower than the exchange rate.

Yes, we noticed that the impact of the sale did not have a major negative impact. In fact, its impact was slight and for a limited period, as the price quickly recovered and rose to about 65K$.

However, even though the German government sold for less than 60K$, it made profits equivalent to $2.8 billion, according to a news I read on Cointelegraph.

[Kemarit]

These are for legal reasons that prevent the government from keeping confiscated assets, and this has happened several times. The good thing is that sometimes these laws do not force governments to sell cryptocurrencies in a short period or to a single buyer, so they often take place in auctions and their price is often much lower than the exchange rate.

Yes, we noticed that the impact of the sale did not have a major negative impact. In fact, its impact was slight and for a limited period, as the price quickly recovered and rose to about 65K$.

However, even though the German government sold for less than 60K$, it made profits equivalent to $2.8 billion, according to a news I read on Cointelegraph.

I'm not sure how much they profited, but yes, for sure, some of the confiscated if not all comes from 2014 seizure, so it has gone in values as the price of Bitcoin around that time could be less than $500.00. So it's already a big profit that they got already. But the thing is that some government might have been owning Bitcoin as well secretly to act as a reserves,



https://finance.yahoo.com/news/governments-hold-surprising-amount-bitcoin-125711893.html

Although obviously, we can remove Germany already from that list.

[robelneo]

This is the most important thing for us that the Bitcoin market has become so strong and large that it will not be affected by the sale of all these huge quantities.

We have become resilient and strong over the years. There is another one coming, which is the MT.Gox payment, but like Germany, I don't see how this will harm the market. I think with this, Bitcoin is ready for new heights, If this happened in the past, the market would crash and have a hard time recovering.

[Stompix]

My question is when will they see the effect of selling those billions worth of BTC to their economy? The influx of tourists because of the recently concluded EURO 2024 probably boosted their economy too.

4 billions in extra revenue from direct sources, calculated by direct spending of 2 million expected fans, might sound like much but Germany makes 40 billion from tourism each year! They also had a 24 billion trade surplus, so positive trade balance last month, 8  times what they got in crypto in just one month.

People really need to understand the size of the German economy!

[Husires]

People really need to understand the size of the German economy!

They need to understand the impact of Bitcoin. Even for a small country like El Salvador, Bitcoin alone will not have a real positive impact, let alone the German economy.
Bitcoin needs decades before it affects the economies of countries.

[Faisal2202]

Bad policies are imposed in almost every country of this world and the whole country first takes full benefit for example, the millennials will take full advantage of these soft policies which are slowly eating the country's growth and a time will come when gen-z have to suffer the consequences caused by these policies. All they need is to modify them in accordance with the need.

I can clearly see lower interest rates at the start and taxation will decrease the national reserve and thus people who will be making more money will leave the country and they won't start a business in the country causing more loss to the country. Therefore a time will come when new generations have to suffer. This selling might not be enough to cover the economic situation of Germany.

[Z-tight]

Holding BTC or not makes no difference to an economy like that of Germany, we are pro bitcoiners, but we have to admit the glaring truth. I don't think the German economy is struggling either, especially when you compare it with that of so so many other countries. They dumped their BTC, and that is that, end of story.

[Stompix]

People really need to understand the size of the German economy!

They need to understand the impact of Bitcoin. Even for a small country like El Salvador, Bitcoin alone will not have a real positive impact, let alone the German economy.
Bitcoin needs decades before it affects the economies of countries.

Salvador has had for two consecutive years the lowest economic growth in Central America, but god forbid we talk about it as it would be...FUD, right?  Now Germany sells a few Bitcoins worth not even 0.1% of their annual GDP and their economy crashes...

I can clearly see lower interest rates at the start and taxation will decrease the national reserve and thus people who will be making more money will leave the country and they won't start a business in the country causing more loss to the country. Therefore a time will come when new generations have to suffer. This selling might not be enough to cover the economic situation of Germany.

Oh yeah, people leaving Germany....in what alternate reality is that?