The Strategic Importance of Bitcoin for Cybersecurity, According to a Member of the United States Space Force
In a recent letter to the U.S. Defense Innovation Board, Jason Lowery, a member of the United States Space Force, emphasized the need for a formal investigation into the use of proof-of-work (PoW) networks like Bitcoin to protect the country from cyber-inflicted warfare. Lowery explained that while Bitcoin is commonly seen as a monetary system, it can also be used to secure all forms of data, messages, or command signals, making it strategically significant for cybersecurity and national security.
The Defense Innovation Board, an independent advisory board, aims to bring technological innovation and best practices from Silicon Valley to the U.S. Military. Lowery urged the board to advise the Secretary of Defense to investigate the national strategic importance of PoW systems like Bitcoin.
Lowery argued that a PoW system like Bitcoin could deter adversaries from cyberattacks due to the steep costs associated with resource-intensive computers. He compared it to the way military assets help deter military attacks against the country in other domains like land, sea, air, and space. By mirroring the physical security and deterrence strategies, PoW systems can provide a similar level of protection in the digital domain.
Lowery emphasized that Bitcoin’s potential cybersecurity applications are vast and could play a crucial role in maintaining the United States’ position as a global superpower. He stated that addressing this potential is vital, especially in an increasingly digital and interconnected world plagued by security vulnerabilities.
Lowery believes that Bitcoin represents the beginning of a cybersecurity revolution by converting the global electric power grid into a large, physically costly computer or “macrochip.” This transformation can help safeguard data and messages traversing the internet while constraining malicious actors.
In his conclusion, Lowery stated that Bitcoin’s cybersecurity application aligns perfectly with a strategic offset and warned that the U.S. Department of Defense may have already lost valuable time by not implementing it into its arsenal. Lowery, who is also a national defense fellow at the Massachusetts Institute of Technology (MIT), previously proposed a cybersecurity tool on the Bitcoin base layer in March, claiming it has the potential to transform the country’s national security.
Bitcoin’s Role in Extending Western Civilization, According to Coinbase CEO
In a separate thread on X, Coinbase CEO Brian Armstrong discussed the potential role of Bitcoin and cryptocurrencies in helping the United States maintain its dominance with the U.S. dollar. Armstrong suggested that cryptocurrencies could work in tandem with the U.S. dollar rather than dethroning it.
Armstrong highlighted that world leaders often fail to retain the reserve currency by inflating the money supply and increasing deficit spending. He stated that the U.S. is somewhere on this journey, but the Chinese yuan and Euro are not viable alternatives at the moment due to their own issues.
Instead, Armstrong proposed that cryptocurrencies could serve as an alternative currency in the event of a U.S. dollar downfall. He noted that people now have the option to move from fiat currency to crypto as an antidote to inflation. Armstrong stressed that it is better to transition to cryptocurrencies rather than another country’s fiat currency if the U.S. dollar loses its dominance.
Furthermore, Armstrong highlighted the importance of U.S. dollar-backed stablecoins like USD Coin (USDC) and the emergence of flat coins in unifying the worlds of traditional finance and cryptocurrencies.