Steve Hanke is wrong once again about something related to Bitcoin.
He recently took aim at the idea of the United States creating a Strategic Bitcoin Reserve (SBR).
In the video embedded in Post say bitcoin doesn’t build factories, create jobs or drive innovation.
A STRATEGIC BITCOIN RESERVE IN THE UNITED STATES = A STUPID IDEA.
Savings funneled into Bitcoin do not build factories, create jobs, or foster innovation. pic.twitter.com/VaH0p7Y835
— Steve Hanke (@steve_hanke) January 6, 2025
I couldn’t disagree more and I think your argument completely misses the point.
Let’s get honest about what an SBR is supposed to do. It’s not about building factories or directly creating jobs. It is about protecting a country’s economy, protecting itself from risks and ensuring long-term economic stability.
Does Hanke think the United States should sell its gold and oil reserves or food and weapons supplies because it is not “driving innovation”? Obviously not. Such reserves exist to provide security and stability, not to act as venture capital investments.
An SBR would work the same way. It would not directly create jobs, but it would provide the United States with a hedge against inflation, dollar devaluation and geopolitical risks.
Let’s face it: the dollar isn’t as strong as it once was, and holding bitcoin would give the United States a safety net as the world moves toward decentralized money. It’s about preparing for the future, not clinging to outdated economic models.
Hanke also forgets how reserves can provide leverage. If bitcoin became the world’s most valuable asset and the United States established a strategic reserve of Bitcoin, it would be ahead of the curve. This isn’t just a hedge: it’s a huge geopolitical advantage. It would strengthen confidence in the U.S. financial system.
His opinion shows that he does not understand what reserves are for. They are about risk management and long-term strategy, not short-term job creation. A strategic reserve of Bitcoin is not a “brake on the economy”. It’s an innovative and forward-thinking move.
The idea of an SBR is not stupid. What is stupid is to dismiss it with outdated arguments.
This article is a Take. The opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.