Neovim have a ~$800k Bitcoin donation sitting untouched since 2023

Hacker News Discussion ↗

Neovim is reported to have a large Bitcoin donation (once worth over $1M, now around $800k) sitting untouched, raising questions about whether the project has access to the private keys, is intentionally “hodling,” or is waiting on legal or tax clarity. Commenters branch into broader debates over Bitcoin’s viability and volatility, the deflationary design of cryptocurrencies, key management and lost coins, and whether potential taxes on unrealized gains or wealth would affect nonprofit projects holding crypto. Overall, many see the stash as either a prudent rainy-day fund or a risky, underused asset given Bitcoin’s uncertain long-term prospects.

Neovim’s Bitcoin Donation Status

  • Thread centers on an ~$800k BTC donation to Neovim that appears untouched since 2023.
  • Some think it’s deliberate “hodling” and a prudent rainy-day fund; others suspect a defunct wallet or lost private key.
  • One commenter claims to have emailed the project; others note the official donation path is now via OpenCollective and suggest the BTC address may just be stale footer content.
  • A rough timeline is given: donation around $200k, peak near $1.2M, currently around $800k.

Tax, Legality, and Unrealized Gains

  • Early comments speculate they may be waiting for legal clarity or favorable tax treatment (e.g., hold-period rules in some countries).
  • There is confusion and disagreement over local tax rules for crypto, especially donation treatment and holding periods.
  • A long subthread debates taxing unrealized gains and wealth taxes:
    • Pro: necessary to make the very wealthy contribute more; analogies to property tax; concern about “buy, borrow, die” strategies.
    • Con: described as “theft,” impractical, forcing liquidity events, harming middle class and startups, and drifting toward socialism.
  • Someone notes Neovim’s funds are (now) managed by a US tax-exempt entity, so such taxes may be irrelevant to them.

Bitcoin as Investment, Currency, and System

  • Mixed views on Bitcoin’s future:
    • Some see it as “done” or underperforming vs S&P 500 and gold; others argue it has repeatedly been declared dead yet recovered.
    • Volatility and transaction costs are cited as major barriers to use as currency, though Lightning fees are claimed to be low.
    • Advocates emphasize its value for people under sanctions or with untrusted governments; critics suggest stablecoins or note that states can still pressure individuals.

Deflation, Monetary Theory, and Lost Coins

  • Fixed supply plus permanently lost coins leads to a detailed deflation debate:
    • Critics: deflation encourages hoarding, raises investment hurdle rates, rewards inherited wealth, and can trigger destructive spirals (Great Depression, credit crunches, gold-standard issues).
    • Supporters: deflation rewards delayed gratification; inflation is seen as a “bug” that erodes savings; analogies to gold’s long-term purchasing power.
  • Broader arguments cover credit creation, velocity of money, dynamic inflation/deflation targets, and historical instability of all monetary systems.

Security, Custody, and Quantum Risks

  • Observations that many BTC are likely lost to forgotten keys, reducing effective supply.
  • Discussion of quantum computing threats: addresses are hashed; risk mainly arises when public keys are revealed on spend.
  • On custody, many users keep coins on exchanges despite the “not your keys, not your coins” ethos.
  • One exchange engineer describes Shamir secret sharing, threshold signatures, and notes that most users cared more about easy, casino-like products than about self-custody or sophisticated security.