#Economists oppose the Fed investing in Bitcoin.#
Hot Topic Overview
Overview
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 would hinder economic growth because these savings are not invested in real capital assets, thus failing to increase productivity and improve living standards. He even called the idea "the dumbest idea." Despite this, Senator Cynthia Lummis still 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 whether it would be a distraction.
Ace Hot Topic Analysis
Analysis
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, thus failing to promote productivity improvements, which are crucial for improving living standards. He even dismissed the idea of Bitcoin reserves as "the dumbest idea." This view stands in stark contrast to Senator Cynthia Lummis's proposed "Bitcoin Act," which aims to establish a Bitcoin strategic reserve by purchasing 1 million BTC. At the heart of this debate lies the question of whether Bitcoin can become a viable reserve asset and whether it will become a distraction. 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 nature offers a new reserve asset option for the global economy. This debate continues, and the ultimate outcome will depend on the market's acceptance of Bitcoin and the direction of government policies.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Investing reserve funds in Bitcoin would hinder economic growth because those savings are not invested in real capital assets.
The idea of Bitcoin reserves is “the dumbest idea” because increasing productivity is essential to improving living standards.
Bitcoin is not a viable reserve asset because it is a distraction and does not promote economic growth.
Investing reserve funds in Bitcoin would reduce the competitiveness of the US economy because other countries would continue to invest in real capital assets.