Veteran economist Steve Hanke dismissed Bitcoin’s (CRYPTO: BTC) rally amid the federal government shutdown as a “flight to fantasy” on Tuesday.
Bitcoin Has No Fundamental Value, Says Hanke
In an X post, Hanke commented on the apex cryptocurrency’s record-breaking run that sent it past $126,000.
“Bitcoin's rally after the US government shutdown = a flight to FANTASY,” Hanke, who served in Ronald Reagan’s White House as a Senior Economist on the President’s Council of Economic Advisers, said.
Hanke, who has been a fierce critic of cryptocurrencies, called Bitcoin a “speculative asset with no fundamental value.”
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The comments riled up Bitcoin supporters. Content creator Christopher Greene said BTC’s value isn’t based on “faith in politicians” but rather scarcity, global settlement and sovereignty.
“The rally isn’t fantasy. It’s a vote of no confidence in the old guard,” Greene added.
Hanke Called BTC A ‘Fool’s Game’
This is not the first time Hanke has lambasted Bitcoin. In February, he criticized the idea of a Strategic Bitcoin Reserve, stating, “Savings funneled into Bitcoin don’t build factories, create jobs, or drive innovation.”
He also described it as a “fool’s game” in a CNBC interview last year.
Price Action: At the time of writing, BTC was exchanging hands at $121,509.44, down 2.11% in the last 24 hours, according to data from Benzinga Pro. Since October began, the asset has rallied over 7%.
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