The costliest mistake in human history

The costliest mistake in human history is often considered to be Russia selling Alaska to America. This sale was driven by the Russian Empire's difficulty in maintaining control of Alaska, facing threats from the British Empire at the time. The negotiation resulted in a purchase price of $7.2 million, equivalent to $123 million today or about 2 cents per acre. The official transfer ceremony occurred in Sitka on October 18, 1867, with a parade of Russian and American soldiers. The Russian flag was lowered, and the American flag was raised. At that time, Russia was unaware of the valuable resources lying beneath Alaskan soil, and they feared the purchase would threaten British control of their Pacific coast colony. Approximately 20 years later, in the 1890s, oil was discovered in Alaska. It's estimated that there are around 1.2 billion barrels of oil in the region, along with an estimated 53 trillion cubic feet of undiscovered natural gas, making the oil alone worth approximately $85 billion dollars today. To put this in perspective, Alaska is more than seven times the size of the UK. The deal was initially criticized and referred to as “Seward’s Folly,” after U.S. Secretary of State William H. Seward, who negotiated the purchase. Russia was eager to sell Alaska because they believed it was a resource drain and feared losing it in a conflict, potentially without compensation. The sale had significant implications for the indigenous peoples of Alaska, who were not consulted in the deal and later had to fight for land rights. The U.S. paid Russia in gold, which was transferred through the banking house of Baring Brothers in London. Public opinion about the purchase changed dramatically after gold was discovered in Alaska, turning “Seward’s Folly” into what many considered a wise investment.