A risky gamble with state funds, employee pension funds?

A lot of my libertarian friends get like kids on Christmas when talking about bitcoin.  I agree with them on most things in the economics arena, but I’m going to need some convincing on bitcoin.

In the wake of last week’s elections, this popped up in our Twitter / X feed:

Granted, this is just about getting a study going.  (Though, I am sure a lot of more-traditional $$$$$ changed hands on Jones Street to get this bill “championed.”)

A lot of elected (and some unelected) types have made a mess of the US dollar over the decades.  But after reading stories about things like – oh – the fall of FTX, I’m a lot more comfortable sticking with good old fashioned cash. ( I’ve seen FTX described as along the lines of a massive Ponzi scheme buttressed by several celebrity endorsers.)

A lot of investors / customers lost a lot of money.  A lot of FTX cash ended up in a lot of politician bank accounts (including some from North Carolina).  This whole matter is still being fleshed out in court.  Victims are not likely to recover their losses.

Dale Folwell and other recent state treasurers have done a pretty good job managing state investments.  Given the mess created by Sam Bankman-Fried and his friends at FTX — still swirling around in the media — is it all that smart of an idea to wander into such risk-fraught territory with the state retirement fund?

For what it’s worth, this bill has not moved since late June.