#Economists oppose the Fed investing in Bitcoin.#

Recently, old-school economists in the United States have strongly opposed the proposal to allocate US reserve funds to Bitcoin. Steve Hanke, a professor at Johns Hopkins University, believes that shifting funds to Bitcoin could hinder economic growth because these savings are not invested in real capital assets, thus failing to improve productivity and ultimately dragging down the economy. He even called the idea of ​​Bitcoin reserves "the stupidest idea." This view stands in stark contrast to the "Bitcoin Act" proposed by Senator Cynthia Lummis, which aims to establish a Bitcoin strategic reserve and purchase 1 million Bitcoins. At the heart of this debate is whether Bitcoin can serve as a viable reserve asset. Opponents argue that Bitcoin lacks intrinsic value and its price volatility is too high to serve as a stable reserve asset. Supporters, on the other hand, believe that Bitcoin's decentralized and censorship-resistant features make it a viable tool for diversified investment and can offer new possibilities for the future financial system. This debate reflects the current societal divergence in understanding digital currencies and foreshadows the direction of future financial system reform.