Steve Hanke is wrong about something related to Bitcoin as well.
He recently floated the idea of ​​the US building a Strategic Bitcoin Reserve (SBR).
In a video embedded in X’s post below, Hanke said converting government savings to bitcoin would be a “drag on the economy” because those savings wouldn’t be invested in “real money assets that produce things.” He then doubled down, saying bitcoin doesn’t create factories, it doesn’t create opportunities. jobs, and does not continue to innovate.
US BITCOIN STRATEGIC RESERVE = TWO VIEWS.
Savings invested in Bitcoin do not build factories, create jobs, or develop new technologies. pic.twitter.com/VaH0p7Y835
— Steve Hanke (@steve_hanke) January 6, 2025
I didn’t argue—and I think his argument 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, preventing risks, and ensuring long-term economic stability.
Does Hanke think the US should sell its gold and oil reserves or stockpiles of food and weapons because they are “not new to drive”? Of course not. Those reserves are there to provide security and stability, not to act as business investments.
SBR can work the same way. It won’t directly create jobs, but it will provide the US with a hedge against inflation, a declining dollar, and geopolitical risks.
Let’s face it—the dollar isn’t as strong as it used to be, and holding bitcoin will provide the US with a safety net as the world transitions to a decentralized currency. It’s about preparing for the future, not clinging to outdated economic models.
Hanke also forgets how powerful archives can be. If bitcoin becomes the world’s most valuable commodity and the US establishes 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 take shows that he doesn’t understand what archives are for. It’s about risk management and long-term strategies, not short-term job creation. The Strategic Bitcoin Reserve is not a “drain on the economy.” It’s a new, forward-thinking initiative.
The SBR concept is not foolproof. It is foolish to waste it on outdated arguments.
This article is a Take it. The views expressed are entirely those of the author and do not reflect those of BTC Inc or Bitcoin Magazine.