#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 economic development. He dismissed the idea of Bitcoin reserves as "the dumbest idea." Hanke's views have been supported by many economists who argue that Bitcoin lacks intrinsic value, its price is highly volatile, and it is not suitable as a 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. This debate has sparked reflection on the feasibility of Bitcoin as a reserve asset and reflects people's concern about the future direction of digital currencies.