Steve Hanke is wrong about something related to Bitcoin again.
he is recently focused on the idea that the US will create a Strategic Bitcoin Reserve (SBR).
In the video embedded in the X post below, Hanke said that converting government savings to bitcoin would be a “drag on the economy” because those savings would not be invested in “real capital assets that will doing things.” He even doubled down, saying that bitcoin does not build factories, create jobs, or drive innovation.
US STRATEGIC BITCOIN INVESTMENT = STUPID THINKING.
Savings are not tied to Bitcoin 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 misses the point entirely.
Let's be honest about what SBR is supposed to do. It's not about building factories or directly creating jobs. It is about protecting a country's economy, hedging against risk, and ensuring long-term economic stability.
Does Hanke think the US should sell its gold and oil reserves or food and weapons reserves because they are not “leading innovation”? Of course not. These reserves exist to provide security and stability, not to act as venture capital investments.
SBR would work the same way. It would not directly create jobs, but it would hedge the US against inflation, dollar depreciation, and geopolitical risks.
Let's face it – the dollar isn't as strong as it used to be, and holding bitcoin would provide a safety net for the US as the world moves towards decentralized currency. It's about preparing for the future, not sticking to outdated economic models.
Hanke also forgets how to leverage reserves. If bitcoin becomes the most valuable asset in the world and the US has established a Strategic Bitcoin Reserve, it will be ahead of the game. That's not just a hedge – it's a huge geopolitical advantage. It will strengthen confidence in the US financial system.
His capture shows that he does not understand why resources are reserved. They are about risk management and long-term strategy, not short-term job creation. The Strategic Bitcoin Reserve is not a “pull on the economy”. It is a modern, progressive movement.
The idea of SBR is not stupid. What is foolish is to dismiss it with old arguments.
This article is a Take. The views expressed are entirely those of the author and do not necessarily reflect the views of BTC Inc or Bitcoin Magazine.
