American economics professor: Trump's establishment of BTC reserves may become the biggest pump and dump scam in history

Regarding the rising calls for the US to establish a BTC reserve, Gary Smith, an economics professor at Pomona College, and Jeffrey Funk, a recipient of the NTT DoCoMo Mobile Science Award, recently stated that the US government spending a huge amount of money to purchase BTC would be of no help in repaying US national debt. (Background: Two more states in the US propose BTC reserve bills, Heritage Brewing plans to accept BTC payments) (Background: The probability of Trump establishing a BTC reserve within 100 days of taking office has dropped to 31%, two possible approaches) The newly elected US President Trump will officially announce his inauguration on the 20th of this month. For those in the crypto world, the most followed issue is when Trump will fulfill his pre-victory promise to establish a BTC reserve for the US. While the market waits with bated breath, Gary Smith, an economics professor at Pomona College, and Jeffrey Funk, a recipient of the NTT DoCoMo Mobile Science Award, expressed in an article on January 17th that the US government spending a huge amount of money to purchase BTC would be of no help in repaying national debt: In our report, we saw that US President-elect Trump plans to establish a federal BTC reserve and use it to repay US national debt. This reminds us of a classic Pump and Dump story. Will there be bigger fools than the federal government to take over? Who will the government ultimately sell trillions of dollars worth of BTC to? If the US government really wants to spend trillions of dollars to buy BTC, it will definitely drive up the price of BTC. In fact, this buying expectation has already caused the price of BTC to soar. But the problem is, how can the US government repay its national debt by buying BTC at a high price? BTC is not a real investment. The two experts supplemented their views by explaining that real investments can generate returns, such as bonds, stocks, etc., even if their prices do not rise. BTC is not a real investment. The buying and selling behavior in the market is more like a game of passing the buck: Buyers can only make a profit by selling at a price higher than their own cost to a bigger fool. The federal government can spend trillions of dollars to buy BTC at increasingly high prices, but the question is, who will be the fool providing profit to the federal government? Perhaps Trump envisioned a Pump and Dump plan, where he and his accomplices would start dumping their holdings after continuously pumping up the price of BTC. The federal government should stop this wrongdoing. Reducing national debt by streamlining the government When it comes to methods to reduce the debt burden on the US government, the two experts believe that a more legitimate and feasible method is to streamline bloated government departments and employees, and increase US productivity: The real way to keep America strong is to increase productivity, which will bring about a decrease in prices, an increase in wages, and an increase in profits. We have too many people, but they are doing very little. The bloated government is like a virus that invades the entire country's machinery and ultimately destroys us. As economist Paul Krugman said, productivity isn't everything, but in the long run, it's almost everything. Related reports: Will Japan establish a BTC reserve? Prime Minister Shigeru Ishiba: Currently lacks sufficient information, security and liquidity are the top considerations. Robinhood CEO: Does not rule out the possibility of using a BTC reserve, company stock price highly correlated with BTC. Michael Saylor: US BTC reserve expected to offset $81 trillion in debt, opportunity for MicroStrategy to be included in the S&P 500. (Economics Professor: Trump establishing a BTC reserve could become the biggest Pump and Dump scam in history) This article was originally published by BlockTempo, the most influential blockchain news media in DAA (Dynamic Area of Action).