#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, thus failing to improve productivity and ultimately dragging down economic development. He even called the idea of ​​Bitcoin reserves "the stupidest 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. Supporters argue that Bitcoin's decentralized and anti-inflationary properties make it an ideal reserve asset. Opponents, however, argue that Bitcoin lacks intrinsic value, is excessively volatile, and lacks practical applications, making it unfit to support its status as a reserve asset. This debate reflects different perspectives on the future direction of digital currencies and raises questions about the future relationship between traditional financial systems and the digital economy.