Steve Hanke is wrong about something Bitcoin related once again.
Heโs recently taken aim at the idea of the U.S. creating a Strategic Bitcoin Reserve (SBR).
In the video embedded in the X post below, Hanke claimed that converting government savings into bitcoin would be a โdrag on the economyโ because those savings wouldnโt be invested in โreal capital assets that produce things.โ He even doubled down, saying bitcoin doesnโt build factories, create jobs, or drive innovation.
I couldnโt disagree moreโand I think his argument completely misses the point.
Letโs get honest about what a SBR is supposed to do. Itโs not about building factories or creating jobs directly. Itโs about protecting a countryโs economy, hedging against risk, and ensuring long-term economic stability.
Does Hanke think the U.S. should sell its gold and oil reserves or food and weapons stockpiles because they arenโt โdriving innovationโ? Of course not. Those reserves exist to provide security and stability, not to act like venture capital investments.
A SBR would work in the same way. It wouldnโt directly create jobs, but it would provide the U.S. with a hedge against inflation, dollar debasement, and geopolitical risks.
Letโs face itโthe dollar isnโt 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. Itโs about preparing for the future, not clinging to outdated economic models.
Hanke also forgets how reserves can provide leverage. If bitcoin becomes the worldโs most valuable asset and the U.S. has established a Strategic Bitcoin Reserve, it will be ahead of the game. Thatโs not just a hedgeโitโs a massive geopolitical advantage. It would strengthen confidence in the U.S. financial system.
His take shows he doesnโt understand what reserves are for. Theyโre about risk management and long-term strategy, not short-term job creation. A Strategic Bitcoin Reserve isnโt a โdrag on the economy.โ Itโs an innovative, forward-thinking move.
The idea of an SBR isnโt stupid. Whatโs stupid is dismissing it with outdated arguments.
This article is a Take. Opinions expressed are entirely the authorโs and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.