#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 could 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 a Bitcoin reserve "the dumbest idea." Despite this, Senator Cynthia Lummis has 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 is merely a distraction.
Ace Hot Topic Analysis
Analysis
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 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 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, while opponents argue that Bitcoin lacks intrinsic value and its price volatility is too high to be a stable and reliable reserve asset. The outcome of this debate will have a significant impact on the future development of cryptocurrencies.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Investing reserve funds in Bitcoin would hinder economic growth, as these savings are not invested in real capital assets.
Improving productivity is crucial for raising living standards, and the idea of Bitcoin reserves would hinder productivity improvements.
Bitcoin is not a viable reserve asset, as its value fluctuates significantly and cannot provide stable value protection.
Investing reserve funds in Bitcoin is a distraction, as it does not provide any real economic benefits.