Bitcoin Blockspace: A Strategic Resource for U.S. National Security

Nation's strategic investments in Bitcoin mining may be essential to safeguard national security and protect economic sovereignty.

‍

The United States faces an urgent need to secure its economic and national security interests. With Donald Trump's recent election as President of the United States, his campaign promise of creating a strategic bitcoin reserve has seen renewed interest. Senator Cynthia Lummis's Bitcoin Act proposes a strategic reserve, outlining an ambitious plan for the government to acquire up to one million bitcoin over the next five years. As speculation grows about countries preemptively building bitcoin reserves ahead of the forthcoming Trump Administration, the U.S. must move swiftly to secure dominant positions in bitcoin and Bitcoin mining.

The Case for Bitcoin as a Strategic Asset

Bitcoin's unique value lies in its fixed, finite supply and its decentralized monetary policy, which ensures this scarcity. Historically, gold has been regarded as the premier store of value, but it faces growing challenges in the digital era. As a physical asset, it is inefficient for global transactions, and its supply is difficult to audit accurately. These limitations have steadily diminished gold's status as the premier store of value. Meanwhile, Bitcoin is increasingly recognized for its ability to transfer value not just across time but also space. Bitcoin excels in portability and salability, making it increasingly attractive as a store of value and medium of exchange, especially for nations seeking financial sovereignty. As bitcoin continues to prove to be a more scarce, desirable, and transferable asset than gold, the U.S. should take the lead in holding bitcoin, just as it does with gold.

The dollar is no longer directly backed by gold, yet holding substantial gold reserves remains a matter of national security. These reserves provide the U.S. with the ability to transact should foreign nations lose confidence in the dollar. Similarly, amassing a bitcoin reserve would ensure the nations' right to transact regardless of circumstances. Given the asset's superior qualities, the U.S. should be a leader in holding bitcoin, just as it is with gold.

The U.S. already holds just over 200,000 bitcoin, but countries like China, with approximately 190,000 bitcoin, are not far behind. As more nations recognize bitcoin's potential as a reserve asset, the U.S. must take decisive action to maintain its leadership in this emerging digital commodity. Establishing a strategic bitcoin reserve is essential, but leadership extends beyond accumulation. Dominating critical resources such as Bitcoin's blockspace and hashrate -the network's backbone-may profoundly impact U.S. financial sovereignty and its ability to maintain global influence in the digital age.

‍

The Strategic Importance of Blockspace & Hashrate

Bitcoin transactions are processed in batches called blocks. Each of these blocks has a fixed transaction capacity, referred to as blockspace. Because transactions are how individuals acquire, trade, and manage their bitcoin holdings, access to blockspace is essential for participating in the Bitcoin economy. The demand for blockspace and its limited availability make it a scarce and valuable resource. Ultimately, access to blockspace is governed by those who control hashrate-the computational power used to validate transactions and add new blocks to the blockchain. Bitcoin mining pools-groups of miners combining their hashrate to increase their chances of mining blocks-are more likely to earn block rewards and prioritize transactions when their hashrate exceeds that of other pools.

A nation that controls a significant share of the global hashrate through Bitcoin mining secures its own transaction sovereignty and ensures that it can protect its economic and national security from foreign interference. By controlling hashrate, a nation can prioritize access to blockspace, preventing adversarial nations from censoring or manipulating its transactions. Conversely, failing to secure a sufficient share of blockspace and hashrate leaves the U.S. vulnerable to external pressures in a world where Bitcoin's importance as a financial and geopolitical tool is rapidly growing. As recent geopolitical shifts challenge the dollar's dominance, securing blockspace and hashrate is increasingly vital for maintaining U.S. economic stability and influence.

‍

Why the U.S. Must Act Now

The world is witnessing a significant trend towards de-dollarization, with nations increasingly turning to alternatives to the U.S. dollar due to concerns over monetary policy and sanctions. This trend has profound implications: the dollar's status as the global reserve currency may weaken, which could hamper the U.S.'s ability to finance its growing debt and spark geopolitical instability. Without strategic investment in Bitcoin mining, the U.S. risks amplifying these challenges and accelerating a potential loss of confidence in the dollar's global dominance.

If the U.S. does not secure and maintain a meaningful share of the global hashrate, it may allow adversarial nations to gain undue influence over the Bitcoin network, which could then be used to censor or manipulate transactions involving U.S. entities. Without the ability to autonomously and securely process financial transactions, the U.S. risks compromising its transaction sovereignty and exposing itself to foreign interference.

Beyond its geopolitical importance, Bitcoin mining offers other economic opportunities for the U.S. It encourages and supports domestic manufacturing, strengthens energy production and distribution, and creates pathways for sustainable resource management. Without investment in domestic ASIC chip production, the U.S. will remain reliant on foreign manufacturers, missing the opportunity to create a sustainable and robust domestic supply chain. Additionally, failing to embrace Bitcoin mining forfeits the ability to monetize excess energy, optimize renewable resources and electricity grids, and drive economic growth through high-tech job creation-opportunities essential for a competitive and resilient economy.

‍

Strategic Recommendations for U.S. Action

To address the challenges and seize the opportunities Bitcoin presents, the United States should implement the following strategic measures:

1. Create a Strategic Reserve of U.S. Bitcoin

The U.S. should acquire bitcoin to be held as a strategic reserve asset. By holding bitcoin, similar to how the U.S. is a leading holder of gold, the U.S. would ensure its ability to transact should global confidence in the dollar wane.

2. Invest in Domestic Bitcoin Mining

The U.S. should prioritize expanding domestic Bitcoin mining operations to increase its share of global hashrate. By controlling a larger portion of the global hashrate, the U.S. can ensure secure access to blockspace and protect its economic sovereignty.

3. Develop Mining Technology & Promote Self-Sufficiency

Encourage domestic production of mining hardware (ASIC chips) to reduce dependence on foreign suppliers. This will enhance technological self-sufficiency and strengthen national security by ensuring the U.S. is not reliant on adversarial nations for critical infrastructure.

4. Implement Supportive Policies & Regulations

Establish clear, comprehensive regulations that provide legal clarity for Bitcoin miners and investors. Offering incentives, such as tax breaks for integrating renewable energy into mining operations, will further stimulate industry growth, technological progress, and job creation.

5. Lead in Global Bitcoin Standards

The U.S. should take a leadership role in setting global standards for decentralized networks. By collaborating with allies and ensuring that Bitcoin remains a neutral, open, and secure platform, the U.S. can promote stability in global financial transactions and protect against the centralization of hashrate in adversarial countries.

6. Protect National Security Through Hashrate Control

As Bitcoin mining becomes more competitive, controlling significant amounts of domestic hashrate will safeguard the U.S. from foreign interference. Ensuring a robust share of the global hashrate prevents adversarial nations from censoring or delaying U.S. transactions, which could have severe economic implications.

‍

Conclusion

The U.S. must act decisively to maintain its position as a geopolitical leader. Strategic investment in Bitcoin mining and control over the Bitcoin network's blockspace and hashrate are essential steps that could safeguard national security and protect economic sovereignty. U.S. lawmakers should recognize Bitcoin and Bitcoin mining as critical components of the nation's financial and geopolitical strategy. Just as the U.S. has led in amassing gold reserves, it must now lead in this emerging sector. By taking the lead, the U.S. can ensure, as MARA CEO Fred Thiel states, "...a sovereign can have sovereignty."

For more information on how to proceed with this initiative, please contact MARA's Government Affairs and Corporate Social Responsibility team at [email protected]. We are ready to work with you to ensure the U.S. secures its future in the digital economy.

‍

Share