In the ongoing global economic and geopolitical rivalry, the United States may have a powerful new weapon – Bitcoin (BTC). That is the argument made by Sam Lyman, the director of public policy at Riot Platforms, one of the largest Bitcoin mining companies.
America’s Key To Economic Supremacy?
Writing for Forbes, Lyman drew parallels between today’s competition in the digital asset economy and the historic “space race” between the US and the Soviet Union during the Cold War.
Just as the US prevailed in the space race by landing the first man on the moon, Lyman believes Bitcoin could become America’s “Trump card” in its economic rivalry with China.
The key, Lyman says, is for the US to classify Bitcoin as a strategic reserve asset – a resource that a nation accumulates to bolster its defenses, stabilize its economy, or gain a competitive edge over rivals. Historically, commodities like gold, oil, and critical minerals have served this purpose for countries worldwide.
However, Lyman argues that with its scarcity, portability, and emerging status as a store of value, Bitcoin could be an ideal digital complement to physical gold reserves.
Bitcoin Vs Gold
As China and Russia “aggressively” accumulate gold to reduce their dependence on the US dollar, another administration in the US could counter by making Bitcoin a key part of its financial arsenal. Lyman added:
Classifying Bitcoin as a strategic reserve asset would be the starting pistol in the Bitcoin Space Race. If the United States – the wealthiest country in the world and the home of global capital – begins accumulating Bitcoin on its balance sheet, then other countries would have powerful incentives to do the same.
According to Lyman, this could slow or even reverse the recent flight from the US dollar into physical gold by major US adversaries. Instead, Lyman argues, it would spark a “digital gold rush” as nations scramble to stockpile the world’s most scarce digital asset.
The idea has already gained traction among some US politicians. Riot’s executive revealed in the article that House Majority Leader Tom Emmer told Lyman that “diversifying our investments is a common-sense next step” as the US continues to embrace the “ownership economy.”
Emmer reportedly expressed to Lyman an eagerness to discuss the matter further with former President Donald Trump, who has publicly supported Bitcoin and warned of the dangers of ceding ground to China and Russia in the digital asset space.
As Bitcoinist reported on Wednesday, Senator Cynthia Lummis is reportedly preparing to announce a bill requiring the Federal Reserve to purchase and hold BTC as a strategic reserve asset. Ultimately, the goal is to get Trump’s support for the supposed bill.
Whether the US will ultimately wield Bitcoin as a “Trump card” against its rivals remains to be seen. However, with growing interest from political leaders and the crypto industry, it’s possible that it could have significant geopolitical implications in the years ahead.
When writing, the largest cryptocurrency on the market is trading just above $65,000 after failing to consolidate above its 1-month high of $68,000 earlier this week.
Featured image from DALL-E, chart from TradingView.com