#Economists oppose the Fed investing in Bitcoin.#
Hot Topic Overview
Overview
The current debate surrounding the Federal Reserve investing in Bitcoin centers primarily on the objections of old-school economists. Johns Hopkins University professor Steve Hanke argues that diverting funds to Bitcoin would hinder economic growth, as these savings are not invested in real capital assets, thereby impacting productivity gains and improvements in living standards. He even calls the idea of Bitcoin reserves "the dumbest idea ever." On the other hand, 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 would be a distraction.
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, cannot improve productivity, and therefore cannot improve living standards. 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. The heart of this debate lies in whether Bitcoin can be a viable reserve asset. Supporters argue that Bitcoin can serve as a decentralized reserve asset, while opponents argue that Bitcoin lacks intrinsic value and cannot promote economic growth. Currently, this debate continues, and the ultimate outcome remains unclear.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Investing US reserve funds in Bitcoin would hinder economic growth, as those savings are not invested in real capital assets.
Improving productivity is crucial for improving living standards, and the idea of a Bitcoin reserve is "the dumbest idea".
Bitcoin is not a viable reserve asset, but a distraction.
Shifting funds to Bitcoin could drag down the economy.