#Economists oppose the Fed investing in Bitcoin.#

Recently, old-school American economists 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, while productivity improvements are crucial for improving living standards. He dismissed the idea of Bitcoin reserves as "the dumbest idea." Hanke's views reflect the prevailing sentiment in traditional economics circles towards cryptocurrencies, which lack intrinsic value and cannot serve as a reliable reserve asset. On the other hand, Senator Cynthia Lummis has proposed the "Bitcoin Act" to establish a Bitcoin strategic reserve, aiming to purchase 1 million BTC. At the heart of this debate lies the question of whether Bitcoin can become a viable reserve asset and its impact on the economy. Proponents argue that Bitcoin's decentralized and anti-inflationary features make it a potential new reserve asset, while opponents contend that its excessive volatility and lack of real value undermine its position as a reserve asset. This debate will continue to draw attention to cryptocurrencies and ultimately influence their role in the global economy.