#Economists oppose the Fed investing in Bitcoin.#
Hot Topic Overview
Overview
Recently, old-school economists in the United States have voiced their opposition to the proposal of allocating US reserve funds to Bitcoin. Steve Hanke, a professor at Johns Hopkins University, argues that shifting funds to Bitcoin could hinder economic growth as these savings are not invested in real capital assets. He emphasizes the importance of productivity enhancement for improving living standards and calls the idea of Bitcoin reserves "the dumbest idea." Despite this, Senator Cynthia Lummis has proposed the "Bitcoin Act" to establish a Bitcoin strategic reserve, aiming to purchase 1 million BTC. This debate has sparked discussions about the feasibility of Bitcoin as a reserve asset and reflects the divergent views and understanding of digital currencies among different groups.
Ace Hot Topic Analysis
Analysis
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, which would fail to improve productivity and thus affect living standards. 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 plans to purchase 1 million BTC. The core of this debate lies in whether Bitcoin can become a viable reserve asset and whether it will be a distraction. Old-school economists believe that Bitcoin lacks real value and cannot promote economic growth, while supporters believe that Bitcoin has advantages such as decentralization and inflation resistance, and can become an important reserve asset in the future. This debate reflects different views on the future development of digital currencies, and also raises questions about the future relationship between traditional financial systems and digital currencies.