The United States is in urgent need of safeguarding its economic and national security interests. With Donald Trump's recent election as U.S. President, his campaign promise to establish a strategic Bitcoin reserve has once again drawn people's attention. The "Bitcoin Bill" proposed by Senator Cynthia Lummis puts forward a strategic reserve, outlining an ambitious plan for the government to acquire up to one million Bitcoins over the next five years. As speculation grows that various countries will rush to establish Bitcoin reserves before the Trump administration takes office, the United States must act quickly to ensure its dominance in the fields of Bitcoin and Bitcoin mining.
The Case for Bitcoin as a Strategic Asset
The unique value of Bitcoin lies in its fixed and limited supply, as well as its decentralized monetary policy that ensures its scarcity. Historically, gold has been regarded as the primary store of value, but in the digital age, it faces increasing challenges. As a physical asset, gold is inefficient in global transactions, and its supply is difficult to accurately audit. These limitations have gradually weakened gold's position as the primary store of value. Meanwhile, Bitcoin has gained growing recognition for its ability to transfer value not only across time but also across space. Bitcoin excels in portability and marketability, making it an increasingly attractive store of value and medium of exchange, especially for countries seeking financial sovereignty. As Bitcoin continues to prove itself as a more scarce, popular, and transferable asset than gold, the United States should take the lead in holding Bitcoin, just as it holds gold.
The U.S. dollar is no longer directly backed by gold, but holding large gold reserves remains a national security issue. These reserves allow the United States to conduct transactions when other countries lose confidence in the dollar. Similarly, accumulating Bitcoin reserves will ensure that countries have the right to transact under any circumstances. Given Bitcoin's superiority, the United States should take a leading position in holding Bitcoin, just like it does with gold.
The United States currently holds slightly more than 200,000 Bitcoins, but countries like China are close behind with approximately 190,000 Bitcoins. As more countries recognize the potential of Bitcoin as a reserve asset, the United States must take decisive action to maintain its leadership in this emerging digital commodity field. Establishing a strategic Bitcoin reserve is crucial, but leadership goes beyond accumulation. Controlling key resources such as Bitcoin's block space and hash rate (the pillars of the network) could have a profound impact on U.S. financial sovereignty and its ability to maintain global influence in the digital age.
The Strategic Importance of Block Space and Computing Power
Bitcoin transactions are processed in batches in the form of blocks. Each block has a fixed transaction capacity, known as block space. Since transactions are the way individuals acquire, trade, and manage their Bitcoin holdings, access to block space is crucial for participating in the Bitcoin economy. The demand for block space and its limited availability make it a scarce and valuable resource. Ultimately, access to block space is controlled by those who control the hash rate (the computing power used to verify transactions and add new blocks to the blockchain). Bitcoin mining pools (groups of miners who combine their hash rates to increase the chances of mining blocks) are more likely to receive block rewards and prioritize transactions when their hash rate exceeds that of other pools.
Countries that control a large amount of global computing power through Bitcoin mining can ensure their own transaction sovereignty and protect their economic and national security from external interference. By controlling computing power, a country can gain priority access to block space and prevent hostile nations from censoring or manipulating its transactions. Conversely, in the context of Bitcoin's growing importance as a financial and geopolitical tool, the United States will be vulnerable to external pressure if it cannot obtain an adequate share of block space and computing power. As recent geopolitical changes challenge the dominance of the U.S. dollar, ensuring block space and computing power is increasingly important for maintaining U.S. economic stability and influence.
Why the United States Must Act Immediately
The world is experiencing a significant trend of de-dollarization, with countries increasingly turning to alternatives to the dollar due to concerns about monetary policies and sanctions. This trend has far-reaching implications: the dollar's status as the global reserve currency may be weakened, which could undermine the United States' ability to finance its growing debt and trigger geopolitical instability. Without strategic investment in Bitcoin mining, the United States may exacerbate these challenges and accelerate the loss of confidence in the dollar's global dominance.
If the United States fails to secure and maintain a reasonable share of global computing power, it may allow hostile countries to gain undue influence over the Bitcoin network, which could then be used to censor or manipulate transactions involving U.S. entities. If the United States cannot independently and securely process financial transactions, its transaction sovereignty will be compromised, and it may face the risk of foreign interference.
Beyond its geopolitical importance, Bitcoin mining offers other economic opportunities for the United States. It encourages and supports domestic manufacturing, strengthens energy production and distribution, and opens the way for sustainable resource management. Without investing in domestic ASIC chip production, the United States will continue to rely on foreign manufacturers and miss the opportunity to build a sustainable and robust domestic supply chain. Furthermore, by not embracing Bitcoin mining, the United States will lose the ability to monetize excess energy, optimize renewable resources and power grids, and drive economic growth through the creation of high-tech jobs—opportunities that are crucial for a competitive and resilient economy.