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 worldwide Meanwhile 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.
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