The U.S. Army Is Evaluating Bitcoin for National Defense Applications – News Emerged Today

It has emerged that the US military views Bitcoin ($BTC) not only as a financial asset but also as a cyber defense tool from a national security perspective. The issue was formally raised today at the Indo-Pacific hearing of the US Senate Armed Services Committee.

Commander Samuel Paparo of the US Indo-Pacific Command (INDOPACOM) stated that Bitcoin could play a significant role in cybersecurity, particularly due to its “proof of work” mechanism. Paparo said, “Bitcoin is a reality. Beyond its economic aspects, it offers very important computer science applications in terms of cybersecurity.”

The main problem highlighted by US officials is that the cost of an attack in cyberspace is almost zero. While an attack in traditional warfare requires significant economic and physical costs, cyberattacks can be carried out at very low costs. This creates a wide range of threats, from spam campaigns to ransomware.

In this context, Bitcoin’s “proof of work” system has the potential to create a measurable physical cost in cyberspace for the first time. This system requires real energy to be expended to verify each transaction or signal. This theoretically necessitates that the attacker bears a tangible cost for each attempt.

The academic foundation for this topic was laid by Jason Lowery in a thesis prepared at the Massachusetts Institute of Technology. Lowery defines Bitcoin not as a means of payment, but as an “electrocybersecurity technology.”

According to this approach, Bitcoin’s true value lies not in its blockchain ledger but in its proof-of-work mechanism. This is because this mechanism makes signal generation in cyberspace costly, thus transferring the classic deterrence theory to the digital world.

The defensive perspective on Bitcoin has gained even more importance, especially in light of geopolitical tensions in the Indo-Pacific region. In recent years, an indirect competition has emerged between the US and China over Bitcoin mining and assets. The US has risen to a leading position in global Bitcoin hash rate. The US government is estimated to hold approximately 328,000 $BTC. China, on the other hand, is believed to possess approximately 190,000 $BTC obtained from its PlusToken operation.

*This is not investment advice.