Cryptocurrencies in Space: How Bitcoin Contributes to US National Security

In recent years, cryptocurrencies, led by Bitcoin, have gained immense popularity as an innovative means of payment. However, their significance extends far beyond the financial sphere. Recent reports from the US Space Force reveal how Bitcoin can play a key role in matters related to cybersecurity and national defense. Major Jason Lowery of the US Space Force highlights the strategic use of Bitcoin, emphasizing its potential in the context of military technology and innovation.

Discovering new areas of application for cryptocurrencies, especially Bitcoin, we begin to see their connection with cybersecurity and national defense. A surprising perspective on this matter is presented by Major Jason Lowery of the US Space Force. In his letter to the Defense Innovation Board, Lowery passionately argues for the strategic use of cryptocurrencies and proof-of-work (PoW) systems.

Lowery emphasizes that these cryptographic systems possess enormous potential and significant strategic implications. He encourages the government to thoroughly investigate the ways in which PoW protocols and Bitcoin can contribute to the development of defense projects and innovations.

In his four-page correspondence to the US Defense Innovation Board dated December 2nd, Lowery argues that Bitcoin is not only a breakthrough technology that can improve the resilience, effectiveness, and transparency of the US military, but also a powerful tool for combating threats from countries like China, Russia, and Iran. He emphasizes that Bitcoin can be used to secure various types of data, messages, or command signals.

The Major of the US Space Force describes Bitcoin as a “paradigm shift” in cybersecurity, in harmony with the idea of “strategic balance.” In this context, he suggests that Bitcoin and its underlying technology could function as modern tools in cyber warfare and defense.

Lowery defines Bitcoin as a revolutionary “macrochip”, a theory that transforms the global electrical system into a huge, resource-intensive computer. He argues that this new strategy introduces physical costs into the digital world, offering a fresh approach to protecting diverse data on the Internet.

As a doctoral candidate at the Air Force Institute of Technology in the field of engineering management and space operations, Lowery calls Bitcoin “the most important innovation in the history of money and accounting”, noting that it will have a huge impact on “the future of warfare.”

Lowery, in his earlier publication, which became a bestseller on Amazon, points out how crypto can be useful for military data security. He also warns that ignoring or underestimating Bitcoin could have harmful effects on the national security and defense of the United States. He points to numerous cases where adversaries are already exploiting the advantages of Bitcoin, for example, China, which controls a significant portion of the network’s processing power due to its dominance in Bitcoin mining, and Russia, which uses Bitcoin to finance its cyber warfare operations.

The use of Bitcoin by Iran to support its ballistic and nuclear projects, as well as to circumvent American sanctions, is also an important aspect. Another threat highlighted by the official representative of the Space Force is the theft of Bitcoin by North Korea from wallets and exchanges to fund its weapons programs.

On December 20, 2019, the National Defense Authorization Act was passed into law, creating the US Space Force as the first new branch of the armed forces since 1947. The widespread belief in the key importance of space exploration for national security led to the creation of the USSF.

The development of Bitcoin and other cryptocurrencies, initially viewed mainly through a financial lens, is now gaining a new dimension. The impact of these technologies on the defense and cybersecurity sphere is becoming increasingly evident, highlighting their strategic importance. The discoveries and proposals of Major Lowery of the US Space Force shed new light on the role that Bitcoin can play in modern warfare and national defense.

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