Steve Hanke makes a mistake about Bitcoin once more.
He’s Recent criticism of the U.S. establishing a Strategic Bitcoin Reserve (SBR).
Hanke, in a video that is embedded below the X-post on the X website, claimed that converting the savings of the federal government to bitcoins would be a profitable move. “drag on the economy” Because those savings would not be invested in “real capital assets that produce things.”Even doubling down on his position, he said that bitcoin does not create factories, jobs or innovation.
It is a stupid idea to create a US BITCOIN strategic reserve.
Savings funneled into Bitcoin aren't building factories, creating jobs, or driving innovation. pic.twitter.com/VaH0p7Y835
— Steve Hanke (@steve_hanke) January 6, 2025
I couldn’t disagree more—and I think his argument completely misses the point.
Be honest. What is a SBR supposed to accomplish? The SBR isn’t about creating direct jobs or building factories. Protecting a nation’s economy is about hedging risks and long-term stability.
Hanke believes the U.S. has to sell off its food, weapons and gold reserves because they’re not worth anything “driving innovation”? No, of course not. Those reserve funds exist for security and stabilization, not as venture capital.
SBRs would also work the same. The SBR wouldn’t create any jobs directly, but would protect the U.S. from inflation, devaluation of the dollar, and other geopolitical threats.
Let’s face it—the dollar isn’t as strong as it used to be, and holding bitcoin would give the U.S. a safety net as the world shifts toward decentralized money. The future is about planning, and not holding on to old economic models.
Hanke forgets that reserves provide leverage. It will also be in a better position if the U.S. establishes a Strategic Bitcoin Reserve. That’s not just a hedge—it’s a massive geopolitical advantage. This would increase confidence in the U.S. Financial System.
He doesn’t seem to understand the purpose of reserves. The reserves are about managing risk and long-term strategies, not creating short-term jobs. It’s not a Strategic Bitcoin Reserve. “drag on the economy.” The move is innovative and progressive.
It’s not stupid to think of an SBR. It’s not stupid to dismiss it using outdated arguments.
This is not a good article. Take. The opinions expressed here are those of the authors and not BTC Inc. or Bitcoin Magazine.
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Source: bitcoinmagazine.com
