#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 ultimately affecting living standards. He even called the idea of Bitcoin reserves "the dumbest idea." This controversy stems from the "Bitcoin Act" proposed by Senator Cynthia Lummis, which aims to establish a Bitcoin strategic reserve and purchase 1 million Bitcoins. Currently, this debate continues, and there is still controversy over whether Bitcoin can be a viable reserve asset and whether it is merely a distraction.
Ace Hot Topic Analysis
Analysis
Recently, 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 "the dumbest idea." Hanke emphasizes that improving productivity is crucial for improving living standards, and Bitcoin, as a non-productive asset, cannot contribute to economic growth. This view stands in stark contrast to the "Bitcoin Act" proposed by US Senator Cynthia Lummis, which aims to establish a Bitcoin strategic reserve and purchase 1 million BTC. At the heart of this debate lies the feasibility of Bitcoin as a reserve asset and whether it would be a distraction, hindering economic development. Currently, there is still debate about whether Bitcoin can become a viable reserve asset and its impact on the economy.