#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 the economy. He even called the idea of Bitcoin reserves "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 be a viable reserve asset. Proponents argue that Bitcoin can serve as a decentralized reserve asset, while opponents contend that Bitcoin lacks intrinsic value, cannot promote economic growth, and will instead hinder economic development. This debate reflects the divergent perceptions and attitudes towards cryptocurrencies, and it also raises questions about the future of the monetary system.