This is an opinion editorial by Matt Smith, a United States Air Force operations officer and a assistant professor of aerospace studies at the University of Nebraska-Lincoln.
As the country’s most antagonistic competitors actively seek ways to de-dollarize the world while simultaneously publicly announcing“the economy of imaginary wealth is inevitably being replaced by the economy of real values and hard assets”, the race to accumulate bitcoin, the world’s most difficult and scarce asset, is not too far away in the not too future far.
Countries will not ban Bitcoin. Instead, eventually, they will compete aggressively for it, and those with factions larger than 21 million will have greater strategic and economic primacy than their geopolitical competitors.
That being said, the National Security Strategy (NSS) is a periodic document designed to communicate the vision of the executive branch and serve as a road map for the United States that helps Congress carry out the instructions set forth by the highest office in the land. October 2022 NSS outlines how the White House will “use this pivotal decade to advance America’s vital interests, position America to outpace geopolitical competitors, address shared challenges, and place our world firmly on the path to a brighter and more hopeful tomorrow.” .
These powerful words not only inspire hope and the promise of a better future for the American people as America strives to remain the champion of freedom and democracy on the world stage, but they also recognize that if there are any missteps in interest, which could bring more darkness to a country desperately seeking light or, worse, cost the nation to lose control of its global influence. It is imperative that the US truly weigh all available options to ensure the best results that promote American values and protect the American way of life.
Digital currency can no longer be ignored
Part of the most recent NSS, in the “Trade and Economics” section, states that “(US) will explore the merits and responsibly lead the development of digital assets, including a digital dollar, with high standards and protections for stability, privacy, and security to benefit a strong and inclusive American financial system and reinforce its global primacy.”
Despite being labeled “magic internet money” and “rat poisonOver the past decade, Bitcoin’s rise ensured its credibility, and since then it has gradually found its way into committees and boardrooms made up of members holding the highest positions of influence. It can no longer be ignored. The aforementioned excerpt from the NSS provides important information about the current view of the executive branch on the growing importance of the development of digital assets such as Bitcoin.
One driver of this growing interest in digital assets is undoubtedly the US national debt, as the nation currently has a $31 trillion deficit with no signs of slowing down. Senator Rand Paul recently acknowledged that “The greatest risk to national security is our debt” after the release of a single, $1.7 trillion (or approximately 95 million bitcoin, in today’s value) spending package. The mountain of national debt is certainly cause for concern.
There are only two ways to pay for a deficit of that magnitude: either by default through a monetary reset or inflation. Due to the insurmountable level of debt, there is a growing need for innovation to help solve this dilemma. The path to a digital dollar is all but inevitable, as the era of 0% money quickly approaches its expiration date and forces the transition to a new monetary system to be born, a monumental shift the world has not experienced since the dawn of time. tastes of the Nixon crash in 1971. In 1971, rather than default on its financial obligations, the US changed economic policy completely, ending the Bretton Woods era and removing the peg of gold to the US dollar.
If history is any future indicator of what will happen at the end of the next financial cycle, it is likely that the US will explore an alternative economic policy as mentioned in the NSS, but this time it will introduce a central bank digital currency (CBDC). , or a digital dollar, to avoid defaulting on your current debt which, ironically, is a form of default.
The United States can adopt Bitcoin
However, the US may not need to invent a national digital dollar, as Bitcoin fits the criteria detailed by the NSS. Bitcoin is the hardest form of money and provides the highest standards of protection for people. Is the most stable digital asset, as it continues to launch a new block every 10 minutes, and is the most inclusive monetary protocol, allowing not only people with social security numbers and two forms of government-issued identification to access its benefits, but also its open source protocol grants protection and services to everyone, including the 1.4 billion unbanked people worldwideMeanwhile he lightning network it promotes efficient transactions, possibly the most important dimension of a globalized economy.
As more people, companies, banks and countries are forced by the market to repay loans in bitcoins instead of notes, the holders of the largest bitcoin stacks will naturally gain more influence. Its built-in deflationary nature and absolute scarcity characteristics ensure that 100% of the work and value created by people is enjoyed and never diminished through monetary degradation. Lastly, Bitcoin’s massive defense system deters bad actors like the attack cost it has become too big and therefore compels peaceful and mutually beneficial agreements.
In every way, the Bitcoin protocol aligns perfectly with the core values of the United States and its national security strategy. Contrary to what some senior officials claim, Bitcoin does not pose a national security risk. Instead, ignoring the Bitcoin network would significantly impede the US’s ability to pay its national debt.outperform (their) geopolitical competitors” and weaken the country’s instrument of economic power, which aims to take advantage of the country’s wealth to influence the behavior of others. Therefore, further delaying Bitcoin adoption is a national security risk.
This is a guest post by Matt Smith. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine, the University of Nebraska-Lincoln, the Department of Defense or the United States Air Force.
