#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 could hinder economic growth because these savings are not invested in real capital assets. He emphasized the importance of improving productivity for improving living standards and called the idea of a Bitcoin reserve "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 will distract from economic development.
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, while productivity improvements are crucial for improving living standards. He dismissed the idea of Bitcoin reserves as "the dumbest idea." Hanke's views reflect the prevailing sentiment in traditional economics circles towards cryptocurrencies, which lack intrinsic value and cannot serve as a reliable reserve asset. On the other hand, Senator Cynthia Lummis has proposed the "Bitcoin Act" to establish a Bitcoin strategic reserve, aiming to purchase 1 million BTC. At the heart of this debate lies the question of whether Bitcoin can become a viable reserve asset and its impact on the economy. Proponents argue that Bitcoin's decentralized and anti-inflationary features make it a potential new reserve asset, while opponents contend that its excessive volatility and lack of real value undermine its position as a reserve asset. This debate will continue to draw attention to cryptocurrencies and ultimately influence their role in the global economy.
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 development.
Investing reserve funds in Bitcoin would reduce the competitiveness of the US economy because other countries would be investing in more productive areas.