How Bitcoin is becoming resistance money and a national security concern
In a little over 10 years, Bitcoin (BTC) went from being a small cypherpunk community (pro-cypherpunk activists) to a national security issue with big geopolitical implications.
On the Unitize panel entitled „From Bitcoin to Fedcoin: The Next Decade of Digital Money“, Meltem Demirors, CSO of CoinShares, and moderated by Andy Bromberg, president of CoinList, who in fact spent very little time talking about Fedcoin and digital currencies issued by central banks (CDBC) in general.
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Instead, they focused largely on the implications of a changing geopolitical landscape, where Bitcoin will play a role in the coming war for dominance of technology, while at the same time acting as a key factor in digitally „escaping“ government control.
Bringing Bitcoin Mining to the United States
Demirors pointed to a major shift in global power dynamics that began to occur during the last few years. He described this shift as an emerging narrative that focuses on the importance of „computing and connectivity in the context of cyber security and national defense.
He cited some benchmarks of this phenomenon, such as Amazon Web Services becoming the largest defense contractor, or how Huawei was accused of jeopardizing the national security of the United States. Meltem believes that all these points were politically motivated, as the United States „has expressed concern about allowing foreign governments to participate in building the country’s infrastructure.
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In addition, semiconductor companies such as Intel and TSMC have begun to look at ways to bring „onshore“ production back to the United States or to their respective countries. The same is likely to happen in the case of Bitcoin mining:
„I think in about five years, it would be very likely that 40% of Bitcoin mining, if not more, will be in the United States. It is very likely that governments will see the large crypto-currency networks as part of their national security strategy.
Bitcoin as resistance money
Talking about stablecoins and especially about digital coins issued by governments, Demirors believes they are in a completely different category than Bitcoin:
„I think what we’re seeing right now, is that people are adapting to the idea and trying to implement it in different ways. CDBC has absolutely nothing to do with Bitcoin. They are authentic.
In his opinion, saying that these systems are based on blockchain could be part of a deliberate misrepresentation since the propaganda „is beginning to reach this industry.
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But at the same time, both Demirors and Bromberg pointed out that CBDs could be an improvement over the existing trust infrastructure. He added:
„I think different needs require different tools. At the end of the day, Bitcoin and all these other cryptosystems, digital fiat and those other projects, are just the tools we’re trying to use to solve our problems.
According to his opinion, the problem that Bitcoin Revolution solves is „the choice of a money system. People who may not be satisfied with the way the system works have few options to defend themselves, and while dollar-based currencies may solve some of those problems, they don’t solve the problems of „financial censorship, financial control and the fundamental lack of privacy.
For her, Bitcoin is, „the horse at the head“ for becoming a form of resistance money.
Therefore, paradoxically, Bitcoin can be seen as a matter of national security and a way to escape it.