Tuesday, February 27, 2024

BTC has ‘national strategic importance’

The United States should formally investigate the use of proof-of-work networks like Bitcoin (BTC) to protect the country from cyber warfare, according to Jason Lowery, a member of the US Space Force.

In a four-page letter to the US Defense Innovation Council on December 2, Lowery explained that while Bitcoin is primarily considered a “monetary system” for securing funds, few are aware of it. that Bitcoin can be used to secure “everything.” data types, messages or command signals”.

“As a result, this misconception underestimates the broad strategic importance of cybersecurity technology and, consequently, national security.”

The Defense Innovation Board is an independent advisory board created to bring technological innovation and best practices from Silicon Valley to the United States Armed Forces. Lowery used the letter to urge the Defense Secretary’s advisory board to investigate the “national strategic importance” of PoW systems like Bitcoin.

Lowery used the letter to urge the Defense Secretary’s advisory board to investigate the “national strategic importance” of PoW systems like Bitcoin.

In his letter, Lowery explained that a proof-of-work system like Bitcoin could serve to deter adversaries from carrying out cyberattacks due to the “high cost” of a computer’s physical resource intensity. , in the same way that military assets help deter. military attack on the country.

“The proof of work shows the physical security and prevention strategies used in other domains such as land, sea, air and space,” but it is done in the digital domain, Lowery explained.

Bitcoin’s potential cybersecurity applications are huge, according to Lowery, and could play an important role in the United States maintaining its position as a world leader.

“Resolving this will be critical for the United States to maintain its positions as a global superpower and leader of nations, especially in an increasingly digital and interconnected world plagued by security vulnerabilities.”

Lowery says it also has the potential to start the “cybersecurity revolution.”

“(It’s) the beginning of a revolution in cybersecurity. It turns the global power grid into a large, physically expensive computer, or ‘macrochip,’ and uses it to physically deter malicious actors and protect a vast amounts of data and messages that cross the internet.”

Lowery concluded that Bitcoin’s cybersecurity application is “completely a strategic tradeoff” and that the US Department of Defense may be “wasting valuable time” by not implementing it in its arsenal.

Lowery is also a national defense fellow at the Massachusetts Institute of Technology (MIT) and in March proposed the creation of a cybersecurity tool at the base layer of Bitcoin, which he said could transform national security.

Bitcoin is the “best defender” of US interests: Coinbase CEO

For his part, in a separate thread on X, Coinbase CEO Brian Armstrong, ARGUMENTS that Bitcoin and cryptocurrencies could play an important role in helping the United States maintain its dominance over the US dollar.

“One idea I’ve come up with is that Bitcoin could be the key to the expansion of Western civilization,” Armstrong said in a Dec. 3 post, explaining that cryptocurrencies could work alongside the U.S. dollar. rather than removing it.

“I think it’s a natural check and balance that will complement the dollar and be the best defender of American interests in the long term,” Armstrong added.

He explained that world leaders often fail to preserve currency reserves by inflating their money supply and increasing their deficit spending.

“The United States is somewhere along this path,” Armstrong explained, but emphasized that the Chinese yuan and the euro are not viable alternatives at the moment, as they have their own problems.

However, cryptocurrencies have the potential to become an alternative currency in the event of a fall in the US dollar:

“What I think many people don’t pay attention to is that people now have an alternative to cryptocurrencies. “They can start moving from fiat money to cryptocurrencies, as an antidote to inflation.”

Armstrong emphasized that it is better to switch from the dollar to cryptocurrencies than to another country’s fiat currency if the US dollar loses its dominance.

He added that US dollar-backed stablecoins like the USD Coin (USDC) and the emergence of flat coins have “an important role in bringing these worlds together.”

Clarification: The information and/or opinions expressed in this article do not represent the views or editorial line of Cointelegraph. The information presented here should not be considered as financial advice or investment recommendations. All investments and commercial activities involve risks and it is the responsibility of each person to do their due research before making an investment decision.

Investments in crypto assets are not regulated. It may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed at or accessible to investors in Spain.

World Nation News Desk
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