Is Bitcoin a threat to US national security?

Since the days when the value of Bitcoin increased slightly compared to the beginning of its appearance and most people in the world became familiar with it, the discussion of the government’s stance against Bitcoin, especially the United States government, became very hot. As a digital currency that first became the most popular in the United States, Bitcoin gradually became a competitor to fiat currencies.

When money is in the middle, all security and government institutions become sensitive. From the beginning of the popularity of Bitcoin until now, the question has been raised whether Bitcoin is considered a threat to the national security of the United States and whether this digital currency is going to be banned one day. in this Note We answer these questions.

The most serious rivals of the United States, namely Russia and China, are actively seeking to devalue the dollar from global markets, and they say so publicly. Putin said in one of his speeches:

The era of the economy of imaginary wealth is over and will inevitably be replaced by the economy of valuable and tangible assets.

At the same time, competition to collect more bitcoins seems likely in the near future. Contrary to what many people think, countries do not ban or suppress Bitcoin. Instead, they compete fiercely to get it; So that anyone who gets more of these 21 million bitcoins will have a strategic and economic advantage over their geopolitical rivals. It should be noted that different countries have their own strategies and each of them determines their future prospects in a way.

Document National security strategy The United States (NSS) is a framework produced every few years that sets the outlook for the executive branch of the US government. At the same time, this document is a road map that helps the Congress in carrying out the instructions of the first person of the country, that is, the President.

In the latest national security document published in October 2022, it is stated that “How should the White House use this decade to advance America’s core interests, prepare it to overcome geopolitical rivals, solve shared problems, and set itself on a path to a brighter and more hopeful future.”

Of course, these powerful and heavy words not only inspire hope and promise a better future for the American people, but also cause the identification of those strategic errors in the national interests of the United States that can lead the country to darkness and even reduce its global authority. become Because the United States considers itself the flag bearer of freedom and democracy around the world. Therefore, it is necessary for the country to carefully weigh all options to ensure the best results are achieved in order to preserve and promote American values ​​and lifestyle.

Digital currencies should not be ignored

In a part of the latest US National Security Strategy document and in the topic related to “Trade and Economy”, it is stated:

The United States will explore and recognize the advantages of digital currencies and take responsible measures to develop digital assets; including the creation of a digital dollar with special standards to maintain stability and privacy and security so that the US financial system remains strong and its global supremacy is strengthened.

Although over the years Bitcoin has been called “magic internet money” and “the death of the mouse”, its rise has given it credibility and legitimacy, which has allowed it to find its way into important global economic and financial committees and boards. .

One of the drafters of the US National Security Strategy document has said that the executive branch of the US government is well aware of the increasing importance of digital assets such as Bitcoin.

Undoubtedly, one of the driving factors for this growing interest in digital assets is the $3 trillion US debt, which there seems to be no will to pay. Senator Rand Powell recently stated that “the greatest threat to our national security is our debt.”

These statements were made after we saw a figure of 1.7 trillion dollars in only one of the financial packages allocated for US spending. Needless to say, currently, the amount of national debt is one of the serious concerns.

What will America do with its debt?

To pay this amount of budget deficit, there are only two ways: either by default (not accepting financial obligations and debts) by changing the monetary system or by inflation. Due to the difficulty of paying this amount of debt, newer and more innovative ways to solve this problem are needed.

The creation of the digital dollar will be inevitable; Because the period of free or cheap money is coming to an end and a new monetary system must be created from scratch; A fundamental change that the world has not seen since the shock of President Nixon in 1971.

In 1971, the United States completely changed its economic policy. In that year, the United States ended the period of the Bretton Woods monetary system and removed the dollar’s dependence on gold.

If history repeats itself and we want to predict the future financial cycle, we will probably come to the conclusion that the United States will completely change its economic policy, which is also mentioned in the national security document.

This time America will introduce a Central Bank Digital Currency (CBDC) or a digital dollar to avoid default on its current dollar debts. Of course, this action is also ridiculous; Because this action is considered as a kind of default or inability to pay the dollar debt.

US Exploitation of Bitcoin

With all that said, maybe America doesn’t need to create a digital dollar; Because Bitcoin benefits from all the features and indicators mentioned in the national security document. Bitcoin is the most tangible form of money and offers people the highest standards of safety. It is also the most stable digital asset in the world today; Because it releases a block containing a number of new bitcoins approximately every 10 minutes.

Another important point is that Bitcoin is a widespread monetary protocol; Because not only people can benefit from its benefits; Rather, its open source protocol can provide services to all 1.4 billion people who do not use banking services in the world. Its Lightning network has also optimized the speed of transactions; A factor that is considered the most important pillar in the global economy.

As more people, companies, banks, and countries are forced to repay their loans with Bitcoin, the larger Bitcoin owners gain more power and influence. Bitcoin’s inherent anti-inflationary nature and its scarcity feature assures users that 100% of the work and value people create will never undergo monetary decline. Don’t forget that Bitcoin’s defense system is built in such a way that attacking it will be very costly for hackers.

The future of Bitcoin and US national security

The Bitcoin protocol is in all respects consistent with the basic American values ​​and its national security strategy. Contrary to the opinion of some senior US officials, Bitcoin is not considered a threat to national security; Rather, not considering and not paying attention to the Bitcoin network may limit the ability of the United States to repay the national debt, strengthen its geopolitical rivals, and weaken the economic instrument of the country’s power. So, the more the government’s use of Bitcoin lags behind, the more danger it threatens the national security of the United States; As a result, it is better for the US to make up its mind to exploit Bitcoin as much as possible.