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“Steve Hanke Calls US Bitcoin Strategic Reserve ‘Stupidest Idea,’ Here’s Why”
Renowned economist and professor Steve Hanke has recently made headlines by denouncing the idea of a US strategic reserve in bitcoin, calling it “the stupidest idea I’ve ever heard.” In this article, we’ll dive into why Hanke believes that such a move would be ill-advised.
Firstly, it’s essential to define what the concept of a strategic reserve is. In simple terms, a strategic reserve refers to a country or institution holding a large amount of a particular asset (in this case, bitcoin) as a means of maintaining economic stability and security.
Hanke argues that creating a US strategic reserve in bitcoin would be detrimental for several reasons:
1. **Lack of transparency**: Hanke points out that the US government has consistently struggled with transparency when it comes to its financial transactions and activities. He believes that by introducing a strategic reserve, this lack of transparency would only exacerbate issues.
2. **Risk and volatility**: The crypto market is notorious for its extreme volatility, with bitcoin prices fluctuating wildly in response to various factors such as regulatory changes, economic uncertainty, or even celebrity tweets. This unpredictability would make it challenging for the US government to accurately value the reserve, potentially leading to significant financial losses.
3. **The Dark Tetrad**: Hanke also brings up the concept of the “Dark Tetrad,” a psychological construct that refers to four personality traits: narcissism, Machiavellianism, psychopathy, and sadism. He argues that those who support a US strategic reserve in bitcoin are likely driven by these dark tendencies, prioritizing personal gains over the well-being of the general public.
4. **Alternative options**: Hanke suggests that instead of investing in volatile cryptocurrencies like bitcoin, the US government should explore more stable and reliable investment options such as gold or other traditional assets.
It’s worth noting that not everyone shares Hanke’s skepticism towards the idea of a US strategic reserve in bitcoin. Some proponents argue that this move could be beneficial for various reasons, including diversifying investments and promoting innovation within the cryptocurrency sector.
While the debate continues to unfold, one thing is clear: any investment decision made by the US government should prioritize transparency, responsibility, and long-term stability over short-term gains or personal interests.
Sources:
[1] Steve Hanke, “The stupidest idea I’ve ever heard” tweet
[2] The Dark Tetrad – 4 Personality Traits
Source: u.today
