Top U.S. economist, Steve Hanke, has recently voiced his strong opposition against the concept of establishing a U.S. Bitcoin Strategic Reserve, calling it the “stupidest idea.” His remarks come in light of a suggestion made by Senator Cynthia Lummis during a blockchain conference. Hanke, a professor of applied economics at Johns Hopkins University, consistently shares his critical views on Bitcoin, and this occasion is no exception.
In his commentary on Senator Lummis’s idea, Hanke argued that turning government savings into Bitcoin could have adverse economic effects. He warned that such a move would impede economic growth, as these savings wouldn’t be allocated towards “real capital assets that produce things.” Hanke likened investing in Bitcoin to purchasing expensive artwork, such as paintings from the Old Masters, which do not contribute to any bankable projects or tangible economic output.
Hanke’s viewpoint reflects a broader concern about productivity in the economy. He stressed how essential it is to focus on investments that boost productivity to enhance living standards and prosperity. He firmly stated his stance against a U.S. Bitcoin strategic reserve, reinforcing his opinion that “savings funneled into Bitcoin aren’t building factories, creating jobs, or driving innovation.”
The economist’s commentary doesn’t stop there. Hanke has also gained attention for labeling cryptocurrency enthusiasts as “psychopaths.” This controversial claim was based on research from the University of Toronto, indicating that individuals who invest in cryptocurrencies may often display psychological traits associated with the “Dark Tetrad,” which includes narcissism, Machiavellianism, psychopathy, and sadism.
The study surveyed around 2,000 individuals and found that cryptocurrency holders exhibited lower analytical and scientific thinking abilities. Hanke summarized these findings, suggesting that this demographic is more likely to harbor darker personality traits than the general population.
As discussions surrounding cryptocurrencies and potential government reserves evolve, Hanke’s critiques resonate with many who worry about the impact of such financial strategies on the economy and societal norms. With voices like his leading the charge, it’s clear that the debate over Bitcoin’s validity in government savings plans is far from over.
