Finlands Bitcoin Faux Pas
When I speak about bitcoin's ability to reduce government overreach, I often get backlash or I'm met with skepticism. Normies are aware of the power their governments have in the fiat system and their ability to paper over their mistakes with infinite money printing, but with bitcoin, it's a different story and you're going to be made to pay for your mistakes.
As we often celebrate bitcoin pizza day, a reminder of the opportunity cost of spending your bitcoin, I think this will be another one to add to the list. Finland has announced, that they will send aid to Ukraine by donating millions of Euros earned through the selling of their bitcoin holdings.
The country's finance minister announced late on Wednesday. The Finnish government holds 1,981 Bitcoin worth nearly €75 million at current rates.
"The government will donate tens of millions to help Ukraine thanks to the proceeds from the sale of Finnish Customs' confiscated Bitcoin," - Finnish finance minister Annika Saarikko tweeted, adding that the decision was "right and proper".
Finland dumping bitcoin
In order to acquire the cash, Finnish Customs said that it had selected locally based digital asset firms Coinmotion and Tesseract to carry out the Bitcoin sale, saying it was satisfied with their "procedures to prevent money laundering and investigate the background of the buyer".
Ideally, they're looking to get as many euros as possible and dumping 1900+ BTC on the market in one go, for a small market like BTC/EUR would send the price tumbling down. So these companies will have to strategically sell, not a great time might I add with the price already trending downward.
However, great for plebs like me, more supply coming online means cheaper bitcoin that will go into my stash.
Where did Finland get this bitcoin?
The Finnish government has hodling these coins for 6 years now, not bad hands, but it looks like they turning tail with paper hands, I wonder why?
About a year ago Finland's customs announced a plan to auction off the seized Bitcoin, most of which dates back to a major drug bust in 2016 when 1,666 of the tokens were confiscated.
At the time, the Bitcoin haul was worth less than €700,000. However, the price appreciation over the last 6 years has seen that value balloon and at current prices put its value at closer to €62 million.
Blacklisting suddenly doesn't matter
I find it hilarious how, if you were someone who held bitcoin deemed to have been used in illicit activity and your coin can get seized should it hit a centralized exchange. Even using privacy tools like coinjoins can get you flagged, yet they can use coins from a drug bust to fund war and it's all water under the bridge.
No rules for me, different rules for thee.
Proof of confiscation
Governments have no idea how proof of work influences money, to them it's just numbers on a screen. When you didn't mine it, didn't sacrifice for it, and either stole it or acquired it with printed fiat money, you'll never value bitcoin.
Governments will continue to misallocate capital, regardless of it being bitcoin or not and that's why I have faith that even if governments and cities acquire bitcoin through tax, confiscation or other means it will end up with the strongest hands eventually.
The Finnish government will look back on this one as a massive mistake, having nearly 2000 BTC could be a life-changing value for the country in the next decade, that could make them a superpower, but instead they're handing over it at a discount to fund war.
I for one am more than happy to make them pay for their mistakes and will be picking up those sats toot sweet.
Sources:
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What's that have to do with the topic of this post?
Direct. Your attitude to how people perceive the information they receive from you dictates the mood of your post. Skepticism about bitcoin and its possible impact on the political and economic aspects of different countries will still be observed for some time, as with other crypto-coins, but do not worry so much. I watch your pain from the first lines).
Dear @chekohler , Do you mean that the Finnish government confiscates the bitcoins used in drug trade and uses them?
I think the actions of the Finnish government are like a crime.
Do you think other countries, like the Finnish government, will use Bitcoin for illegal activities? What are the consequences of the Finnish government's disgraceful actions worldwid?
I guess you've come to the conclusion that Bitcoin is going to be the most reliable and valuable international currency among cryptocurrencies!
Well they have not used them, they were meant to be auctioned off as an income for the government but they now claim that they will market dump and give the proceeds to Ukraine.
I don't know what you mean by illegal activities, the government sets the rules so anything they do is legal lol so wtf?
I think all taxation and inflation is theft and I think drugs being made illegal doesn't make it illegal, drugs don't violate the non-aggression principle so to me its fine, its your choice to drug yourself up.
It is shocking that after the Finnish government confiscated the bitcoins used in drug trade, the money from the bitcoin purchases was provided to Ukraine.
Perhaps, I think it would be illegal to give Ukraine fiat currency that traded drugs.
In the end, the Finnish government used Bitcoin to legalize illegal activities.
I have a disturbing feeling that in the future, countries, governments, and companies around the world will use Bitcoin to justify illegal activities.
Actually you can think about it this way: international drug organization, by proxy, helped Ukraine in a fight against the enemy invasion.
It's kind like good deed!
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Dear @brando28 , Are you finnish? Nice meet to you! I am an eastasian!
Yes, I am. Nice to meet you too!
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Unbelievable! It can´t get crazier than this! At least for today. We live in crazy times.
War is peace! I am living in an Orwell nightmare.
The worst is people still gobble this shit up like its a noble and virtuous act, lets hand each other more weapons to kill each other while others profit from the prolonged war that puts millions into poverty
Yes, it is sickening how today everything is perverted. In Germany the Green party (which is in the government!) was in the past (still until 2 years ago) absolutely against delivering weapons into war zones - and now all of a sudden are the most disgusting warmongers.
well they're making big mistakes, especially with this push for green energy and trying to get off Russian gas, it's only going to make Germans poorer and crush industry. Germany is a massive manufacturing economy worth trillions a year, impact to energy prices will have massive effects, the PPI in Germany is already at all time highs, so inflation is coming
yes, it almost seems the current "young leaders" in Germany have the duty to crumble its economy to foster creating the NWO
Finland has the highest taxes overall in Europe, even helping the neighbor is considered to be part of collecting dimes from the poor.
They tax BTC 30% from profits, so the deal of trading makes sense. They really want to stop economic activity, the prime minister herself is part of WEF, so all according to the plan.
Not to be fooled, the small country has small circles and everyone follows the big leader, obeying every command. Bitcoin is highly supervised, but luckily there are variety of other options.
That’s a common fallacy of the Nordic countries what does high taxes help with a small population? I think it’s so lazy when people make that comparison because it’s such a fractional part of their income.
If taxes help why is their debt to GDP ratio at 60%? Finland is just using it as an olive branch to get themsleves into nato so they politicians can’t get a kick back while they sell out their citizens to the US military industrial complex
They could simply transfer fiat money instead of ditching BTC.
True that, but clearly they don't value having bitcoin in their treasury which is all good with me, a great time to dump with prices crashing lol
:)
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That's hilarious but great for Bitcoin holders and normies. When govern-cement gets rid of it's position in something like bitcoin for virtue signaling, that's the best kind. I'll happily slurp up some of that sold Bitcoin thank you very much!
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I love it man, make sure they have to pay through their teeth to get any sort of bitcoin, that's why I am against this pay your taxes and bills with bitcoin, not now anyway, in future, but while the upside is so great I wouldn't give any government my bitcoin
Hey I read about this..yeah, it's crazy. I would have diversified that portfolio a bit. Bought some ETH and few smaller alts too. And put someone someone in charge of that portfolio, someone who knows about crypto.
But since it's going to Ukraine I hope they spend it wisely. I don't know what that amount can buy sin in my opinion they need some modern fighter jets and maybe some long range heavy artillery, MLRS and stuff to stop the enemy.
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LOL if you're going to buy shitcoins with your proceedings you might as well just sell it, why would you take value and put it into networks that are poor performers and less secure?
😄I wouldn't call ETH a shitcoin. And little diversifying wouldn't be such a bad thing if these assets were to use for trading and getting better interest on some dapps for example.
With your argument you might wanna ask why people buy any other assets than BTC? Why they even exist?
Diversification is meant for non correlation not to increase leverage on correlation so no that’s dumb and 2 yes eth is a shitcoin he’s 70% premined centralised piece of garbage
I suggest you do your research because you’re embarrassing yourself
No need to get upset. I'll try to clarify this for you with a simple example: within 24h time frame BTC is up 5.7% and Polkadot is up 32.4% also on 24h timeframe. Now, if we would have bought DOT 24 hours ago with let's say 100k and sold that now and also sold 100K worth of BTC we'd made more profit with our Polkadot. That's not dumb, that's profit.
No that is dumb you’ve clearly never traded in any kind of size before have you? If you just held the bitcoin you 99% chance outperform that example trade you’ve given
Why?
Because moving over from property (bitcoin) to an unregulated security is a taxable event in all counties where Bitcoin is not
Secondly if something goes up higher which it can there’s NO gaurentee there is liquidity at that price to execute the trade, look at any shitcoin order book man
I am not getting upset you’re just saying things that are factually false and what must I do? Just agree with you so I don’t hurt your feelings?
LOL! No feelings hurt here. Now it just sounds like you are trying to talk your way out of this which is understandable. I've actually traded quite a bit and could give you lecture on that topic but don't think you are in the most receiving mood right now. 😄 And I can also read between the lines that you are a die hard Bitcoin holder. That is cool, I just have a different approach on crypto and consider volatility a friend of mine but I can relate to holders and understand why feeling a bit cranky at the moment.