The Accounting Podcast The Case Against a Crypto Reserve
Mar 5, 2025
In this engaging discussion, Dr. Jack Castonguay, a CPA and associate professor at Hofstra University specializing in accounting and finance, critiques the proposal for a Strategic Bitcoin Reserve. He challenges the wisdom of investing taxpayer funds in volatile cryptocurrencies, highlighting their limited practical applications. The conversation covers the dangers of speculating with public money, concerns about anonymity in Bitcoin ownership, and the transformation of Bitcoin from a currency to a speculative asset, raising alarms about government involvement in this high-risk arena.
AI Snips
Chapters
Transcript
Episode notes
Bitcoin's Risk and Lack of Use Case
- Bitcoin is a high-risk investment with no current practical use case, unlike oil or foreign currency reserves.
- Investing taxpayer money in Bitcoin at record-high prices would be a regressive tax.
Bitcoin's Volatility
- Bitcoin has outperformed other assets, but its value could also drop to zero.
- The U.S. government shouldn't speculate on volatile assets with taxpayer money.
Decreased Use as Currency
- Bitcoin's use as a currency has decreased, primarily becoming a speculative asset.
- It's mainly used by those in countries with unstable banking systems or by illegal groups.