Steve Hanke is wrong about something related to Bitcoin again.
that it The idea of the United States creating a Strategic Bitcoin Reserve (SBR) has recently been targeted.
In the video embedded in Saying that Bitcoin doesn’t build factories, create jobs, or drive innovation.
US Bitcoin Strategic Reserve = Stupid Idea.
Savings converted into Bitcoin do not build factories, create jobs, or stimulate innovation. pic.twitter.com/VaH0p7Y835
– Steve Hanke (@Steve_hanke) January 6, 2025
I couldn’t disagree with him more, and I think his argument completely misses the point.
Let’s be honest about what SBR is supposed to do. It is not about building factories or creating jobs directly. It is about protecting the country’s economy, hedging against risks, and ensuring long-term economic stability.
Does Hankey think the United States should sell its gold and oil reserves or its food and weapons stocks because it is not “driving innovation”? Of course not. These reserves are there to provide security and stability, not to act as venture capital investments.
SBR will work the same way. It will not create jobs directly, but it will provide the United States with a hedge against inflation, dollar depreciation, and geopolitical risks.
Let’s face it, the dollar is not as strong as it used to be, and holding Bitcoin would give the United States a safety net as the world turns toward decentralized money. It is about preparing for the future, not clinging to outdated economic models.
Hankey also forgets how reserves can provide leverage. If Bitcoin becomes the world’s most valuable asset and the United States creates a strategic Bitcoin reserve, it will be ahead of the game. This is not just a hedge, it is a huge geopolitical advantage. It would enhance confidence in the American financial system.
His action shows that he does not understand the purpose of reserves. It’s about risk management and long-term strategy, not short-term job creation. The Bitcoin Strategic Reserve is not a “constraint on the economy.” It is an innovative and futuristic step.
The idea of SBR is not stupid. Stupidity is to reject it with outdated arguments.
This article is a takes. The opinions expressed are entirely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.
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