#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, while productivity improvements are crucial for improving living standards. He even called the idea of ​​a Bitcoin reserve "the dumbest 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 BTC. At the heart of this debate is whether Bitcoin can be 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. They believe that investing funds in real capital assets that can promote economic growth is a wiser choice. Supporters, on the other hand, argue that Bitcoin's decentralized and censorship-resistant features make it a viable new reserve asset, bringing more possibilities to the global economy. This debate continues, and the ultimate outcome will depend on people's perception of Bitcoin and its future development.