The financial markets for everything, including cryptocurrencies, are still at a standstill as we celebrate the first week of 2023. In this time of global economic uncertainty, people are keeping their money close. Here’s why it’s increasingly important for governments to keep their bitcoins safe.
Bitcoin price barely budged after the release of the latest jobs report. It moved less than 1 percent and held more than $16,900 as jobs data indicated a price increase.
Bitcoin is poised to become the world’s ‘primary monetary instrument’
Let’s put aside investor worries about cryptocurrency winter prices for a moment and consider the reality of bitcoin in 2023. People are used to wondering whether or not cryptocurrency is here to stay. Now successful investors and even banking giants have recognized its advantages.
Not only does Fidelity Investments consider Bitcoin to be a safer and more resilient cryptocurrency than most of its peers, but its report cites the bank’s view that BTC has characteristics and status that make it “the world’s primary monetary utility.”
Not only is bitcoin here to stay, but it will back up more global reserves as the decade progresses. It means serious national security concerns and opportunities for the United States and all major world powers in international hegemony.
National Security Efforts to Join the Bitcoin Race
We are close to an important turning point in the history of Bitcoin. After 14 years of grand experience, it is now regarded by technology professionals and industry investors as a mature technology platform. It has proven its security and reliability, stacking a new block without interruption every ten minutes for 14 years now.
Markets are beginning to reflect this new reality with the stability of Bitcoin and its success in global finance. Bitcoin price has historically low volatility. While traders who profit from turbulent markets may not find it interesting, institutions and governments are stepping up for the next strike.
As the rules become clearer, the United States will have to rethink its entire foreign policy toolkit. Other sovereign states are quick to jump into the bitcoin race. El Salvador is the most prominent among them, and others in Central America.
In its latest National Security Strategy document, the Biden administration says:
“We will explore the benefits and responsibly lead the development of digital assets, including the digital dollar, with high standards and protections for stability, integrity and security for the benefit of a strong and inclusive US financial system and enhance its global preeminence.”
It will be important in the next decade. The dollar will never disappear as an important global reserve. It is very stable, very traditional, and supported by the United States. But many parts of the world are actively pursuing de-dollarization policies that were unheard of in the last century.
Only the United States can maintain its global dominance and importance at 20th century levels by joining the Bitcoin race for hash power and BTC.
The post The Race for Bitcoin Is A Matter of National Security (Opinion) first appeared on CryptoPotato.