#Economists oppose the Fed investing in Bitcoin.#
Hot Topic Overview
Overview
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 would hinder economic growth because these savings are not invested in real capital assets, thus failing to improve productivity and living standards. He even called the idea of Bitcoin reserves "the dumbest idea." This controversy stems from Senator Cynthia Lummis's proposed "Bitcoin Act," which aims to establish a Bitcoin strategic reserve by purchasing 1 million BTC. Currently, the debate over whether Bitcoin is a viable reserve asset continues, attracting widespread attention.
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, as these savings are not invested in real capital assets, while productivity improvements are crucial for improving living standards. He called the idea of Bitcoin reserves "the stupidest idea." This view contrasts sharply with Senator Cynthia Lummis's proposed "Bitcoin Act," 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. Supporters, however, argue that Bitcoin's decentralized and censorship-resistant nature makes it a viable new reserve asset, bringing new vitality to the global economy. Currently, this debate continues, and the final outcome will take time to verify.