Game Theory at Work? Speculation Grows Over US Military Interest in Bitcoin Mining

Following the establishment of the Strategic Bitcoin Reserve (SBR) by US President Donald Trump, speculation has arisen about possible Department of Defense (DoD) initiatives in the field of cryptocurrency mining.

Is the US Department of Defense Entering the World of Bitcoin Mining? X-post Sparks Controversy

On March 17, Michelle Weekley, CEO of cryptocurrency venture Byte Federal, began a provocative discussion about the possible U.S. Department of Defense (DoD) exploration of Bitcoin (BTC) mining. On Monday, Weekley stated, “I believe the U.S. Department of Defense is going to start mining Bitcoin,” backing up her hypothesis with a series of mysterious and vague visuals.

X-post Weekley.

Among the shared materials was a repost from Michael Saylor, the founder of Strategy, with his cryptic statement: “Big things are coming.” Weekley added to the intrigue by posting a photo from Matthew Pines, the executive director of the Bitcoin Policy Institute, of a nondescript conference space with the caption “The room where it happened.”

She also stoked the interest by featuring an image of Bitcoin Magazine CEO David Bailey, who added a philosophical succinct under Michael Saylor’s cryptic “Big Things Are Coming” post: “Embrace Game Theory.” Bailey’s follow-up message: “When you think the show is over, it’s really just beginning,” added even more mystery to the digital collage.

Her curated gallery further highlighted Jason Lowry, a US Space Force officer and aeronautics specialist whose X-swapping displayed a tantalizing opacity. When asked about her profile photo change, Lowry responded, “Wait about three weeks and then it will become clearer,” a remark that echoed Weekley’s hypothesis.

Her suggestion also echoes Lowry's treatise, Software Warfare: A New Theory of Power Projection and the Strategic Importance of Bitcoin, which argues that using physical assets like energy to control virtual realms could enhance a country's defense capabilities.

If the Defense Department decides to mine Bitcoin, it will dive into the proof-of-work mechanism, converting kilowatts into cryptographic fortifications. Such a move is consistent with Loehrey’s vision of using physical assets to dominate digital spheres, framing blockchain security as a geopolitical chess piece. By fortifying the integrity of the network with computational weight, the agency can realize Loehrey’s vision of Softwar.

Published in February 2023, Loeri’s manifesto reimagines Bitcoin not as a simple digital currency network, but as an electro-cyber shield with serious tactical implications. His thesis is based on the tension between physical force (energy, linked to thermodynamics) and ideological dominance (collective faith), intertwined with strategies based on game theory principles. Weekley’s speculative thread, meanwhile, has piqued the interest of several digital pundits, who have filled the thread with speculation.

Barefoot Mining founder Bob Burnett responded, “I’m not saying I like it, but it’s inevitable. The Fed will probably do the same, as will the CIA and NSA. I expect the latter two are already doing it.” Another member of the Weekley thread noted, “I’m guessing the DOD has been mining Bitcoin for years as a national security issue, and Softwar and [Jason Lowry] were educational tools to change the Overton Window.”

If the Defense Department embraced the concept of “soft warfare,” it could dramatically change the approach to cyber warfare. Instead of relying solely on traditional methods like malware and hacking, countries would compete for computing power and energy supremacy. The tangible costs of proof of work would make any attempt to attack or manipulate the system prohibitively expensive, creating a robust shield for national cybersecurity.

However, at this point, this idea remains speculative – just theoretical thoughts without any concrete actions. Nevertheless, it is an intriguing concept to discuss.

Source: cryptonews.net