When the Russia-Ukraine war started in late February 2022, no one was thinking of Bitcoin or crypto in the context of that war. Then, just days inot the war, the Ukrainian government (Ministry of Digital Transformation of Ukraine) announced that it's accepting crypto donations from worldwide supporters. It posted addresses to its Bitcoin, Ethereum and other wallets on social media.
Some were skeptical about the Ukrainian government's decision to accept Bitcoin and crypto. However, it was completely logical and in fact, essential. Whether you're an individual, company, or government you still have to "handle" finances diligently in times of conflict. Mainly, you need money that is durable, portable, and verifiable. The importance of portability is key here. Imagine moving gold bars of fiat currency across borders. Imagine the time it would take to wire or electronically transfer fiat between bank accounts. Bitcoin solves these issues and circumvents any shortcomings that come with fiat transfers and commodity portability.
Recently, researchers and commentators in the US have started sounding the alarm that America is losing in the race towards Bitcoin. Let's be clear on something: Governments are not interested in sharing power or relinquishing power. Therefore, governments' natural position towards Bitcoin (once they understand its power) is to try and control then use it.
Holding, trading, speculating, etc. with Bitcoin is not where the power of Bitcoin comes from. Power comes from mining, developing code, building on the blockchain, and the thousands of nodes. Participating or being part of the network means you have a share in the "power" of the network. As such, governments are likely already participating in the Bitcoin network in one way or another. Mining is the most powerful position a government can take in Bitcoin's blockchain from a national security perspective. But what does US national security have to benefit from this attempt to use the Bitcoin blockchain? Block sanction evaders such as Russia, North Korea, and others. The US Dollar is a diplomatic "stick" that the government can use to practice diplomacy overseas. To reward or punish as it sees fit from a national security policy perspective. Naturally, those who are not benefiting from this system will look for alternatives, mainly Bitcoin. Undoubtedly, this desire to escape the dollar's hegemony and "search" for an alternative is not new. Bitcoin is a long awaited "escape" from the government's eyes. The US government tried to ban Bitcoin in the past to remove that alternative. It failed. Governments view Bitcoin as a risk, and since risk cannot be eliminated it's best to "work with it". Therefore, the government will try everything it can to partake in the network; openly or clandestine. I believe that these decisions and plans are made by individuals in meeting rooms in DC metro with little understanding of the value of Bitcoin. Using it for national security positioning is akin to using cell phones as a calculator only. It's a waste and will not work once people see its potential.
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Recently, one of the brightest minds in the Bitcoin community Jason Lowery published a paper titled "Softwar: Bitcoin and the Future of National Strategic Defense". Per the abstract, he suggests that Bitcoin can change power projection strategies through monetary policies. He also suggests that world governments, in a race towards Bitcoin to build their own influence will drive worldwide adoption and build a "Mutually Assured Preservation". I agree with him that an "arms race" of sorts towards Bitcoin will end up benefiting Bitcoin and the world. However, the issue is governments (especially the US government) are easily corrupted. There is some faith in the government as an institution (theoretically), but the government is made of individuals (realistically). It's almost impossible to rely on human nature without a system of reward and punishment. Bitcoin provides that. Bitcoin is the purest form of money and technology humankind has ever created. It's a trustless system because it doesn't need enforcement of trust. It keeps governments honest because over time people will realize that they have two choices: Bitcoin or the government's fiat currency. That's when the government will realize it has real competition that is not in the form of another nation but in the form of pure technology. In essence, Bitcoin is necessary for National Security for the people, their future, their wellbeing, their property. Bitcoin is not a tool of National Security the government can use for its surveillance apparatus.