Do you know what the UK government did between 1999 and 2002?

It's something very similar to what the German government is doing today.

If you don't know, I'll explain it to you.

👇🧵

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A total of approximately 395 tonnes of gold was sold at 17 auctions between July 1999 and March 2002, administered by the Bank of England on behalf of the Treasury.

Profits from the sales (around US$3.5 billion or £1.9 billion) were reinvested in dollar, euro and yen interest-bearing assets, which remained as part of the reserves.

Yes, the government sold a scarce asset to invest in a depreciating currency.

But the most interesting thing about this is not the movement itself, but when it specifically occurred.

Sales made between 1999 and 2002 were made when gold cost about US$260 per ounce. In the graph below is an arrow showing when this process occurred.

From this period to the present, gold has risen more than 830%.

I believe this movement is being repeated by another government : o in Germany.

To date, the German government has sold more than 36.8 thousand BTC through exchanges and OTC counters, around US$2.1 billion in dump.

At this moment, they still have around US$760 million or just over 13 thousand BTC.

I believe these reserves will go to zero.

But how does this benefit the bitcoin investor?

The great truth is that fiat currency priced in hard currency tends to zero.

While some see the price of bitcoin in dollars, others see the price of the dollar in bitcoin.

The graph below highlights this dynamic.

As the German government swaps a scarce asset for one that is printed out of thin air, investors patiently accumulate.