US Economics Professor: Trump's establishment of Bitcoin reserves may become the biggest fraud in history to increase shipments

The new US President Trump is about to take office, and his campaign promise - to establish US Bitcoin reserves - has attracted much attention from the currency circle. However, Gary Smith, professor of economics at Pomona College in the United States, and Jeffrey Funk, winner of the NTT DoCoMo mobile science award, recently published an article questioning the feasibility of the move. They pointed out that the huge government purchase of Bitcoin will not solve the problem of Treasury bonds, but may instead turn into a large-scale "supported shipment" scam. The article points out that after the government buys Bitcoin at a high price, how can it repay its Treasury bonds by selling it? This purchase expectation has pushed up the price of Bitcoin, but who is the "fool" who will eventually take over?

Bitcoin is not a real investment

Two experts believe that real investments, such as bonds and stocks, can generate returns even if the price has not risen. But Bitcoin's market behavior is more like "passing flowers by beating the drum", and can only make a profit when it is sold to the next company at a price higher than the cost. The government continues to buy at high prices, who will eventually become the buyer? They suspect that the Trump administration may plan a "pull up shipment" plan to sell and make profits after pushing up prices.

Simplifying the government is the right way

Two experts believe that a more effective way to solve the U.S. Treasury problem is to streamline government agencies and increase productivity rather than speculate on Bitcoin. Only by increasing productivity can we bring about price declines, wages and increased profits. The government is bloated like a virus, damaging the state machine. As economist Paul Cruman said, productivity is not omnipotent, but in the long run, it is almost everything.

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