HomeTAKESSteve Hanke Is Wrong About the Strategic Bitcoin Reserve

Steve Hanke Is Wrong About the Strategic Bitcoin Reserve

Let me break down why his outdated arguments just don't add up.

Steve Hanke is wrong about something Bitcoin related once again.

Heโ€™s 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 โ€œdrag on the economyโ€ because those savings wouldnโ€™t be invested in โ€œreal capital assets that produce things.โ€ He even doubled down, saying bitcoin doesnโ€™t build factories, create jobs, or drive innovation.

I couldnโ€™t disagree moreโ€”and I think his argument completely misses the point.

Letโ€™s get honest about what a SBR is supposed to do. Itโ€™s not about building factories or creating jobs directly. Itโ€™s about protecting a countryโ€™s 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 arenโ€™t โ€œdriving 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 wouldnโ€™t directly create jobs, but it would provide the U.S. with a hedge against inflation, dollar debasement, and geopolitical risks.

Letโ€™s face itโ€”the dollar isnโ€™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. Itโ€™s about preparing for the future, not clinging to outdated economic models.

Hanke also forgets how reserves can provide leverage. If bitcoin becomes the worldโ€™s most valuable asset and the U.S. has established a Strategic Bitcoin Reserve, it will be ahead of the game. Thatโ€™s not just a hedgeโ€”itโ€™s a massive geopolitical advantage. It would strengthen confidence in the U.S. financial system.

His take shows he doesnโ€™t understand what reserves are for. Theyโ€™re about risk management and long-term strategy, not short-term job creation. A Strategic Bitcoin Reserve isnโ€™t a โ€œdrag on the economy.โ€ Itโ€™s an innovative, forward-thinking move.

The idea of an SBR isnโ€™t stupid. Whatโ€™s stupid is dismissing it with outdated arguments.

This article is a Take. Opinions expressed are entirely the authorโ€™s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Vivek Sen Bitcoin
Vivek Sen Bitcoin
Vivek has been fascinated by Bitcoin since he discovered it in 2016. He also runs a Bitcoin marketing agency, Bitgrow Lab, and he used to work at a Bitcoin VC fund, Lightning Ventures. He loves growth, marketing, startups, and writing. He is an EU news reporter for Bitcoin Magazine.
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