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Steve Hanke Calls US Bitcoin Strategic Reserve ‘Stupidest Idea,’ Here’s Why
Renowned economist and professor at John Hopkins University, Steve Hanke has made a bold statement regarding the idea of a US bitcoin strategic reserve. In an interview with CNBC, he referred to this concept as the “stupidest idea” he has ever heard.
The idea of creating a national cryptocurrency reserve gained traction in 2022 when several prominent figures, including former US Senator and presidential candidate Rand Paul, expressed their support for it. They argued that the strategic reserve would serve as an asset diversification tool to stabilize the global financial system, similar to other countries’ gold reserves.
However, Hanke strongly disagrees with this notion, citing various reasons. Firstly, he emphasizes that bitcoin is not a store of value like gold or other traditional assets. He claims that the market capitalization of cryptocurrencies is simply too volatile and unpredictable to be considered as a reliable means of storing wealth.
Secondly, Hanke highlights that the government would need to purchase large quantities of bitcoin to create such a reserve, which would further destabilize the cryptocurrency market and potentially lead to a collapse. This could have devastating consequences for investors who have already lost faith in traditional currencies.
Finally, he questions the role of the US government in promoting or regulating the use of cryptocurrencies, stating that this is not within its jurisdiction. Hanke believes that the regulation of bitcoin should be left up to the private sector and individual states rather than federal authorities.
It’s worth noting that Hanke has been a vocal critic of cryptocurrency hype and has repeatedly expressed his skepticism about its long-term viability as an investment option or store of value.
While some may disagree with Hanke’s views, it is essential to acknowledge his expertise in economics. His opinions are based on rigorous research and analysis, which should be taken into consideration by policymakers, investors, and the general public alike.
In conclusion, Steve Hanke has once again demonstrated his willingness to challenge prevailing wisdom and speak truth to power, even if this means going against popular trends.
Source: u.today
