In just over 12 years, Bitcoin rose from an obscure idea posted to a cryptographer’s mailing list to a globally-recognized asset class with market cap of over $1 trillion. This paper examines Bitcoin and the blockchain technology on which it is based from two distinct angles: 1) its long-term viability as money or a durable unit of exchange, and 2) its potential applications within U.S. Special Operations Command (USSOCOM) to enhance operational effectiveness.
As a unit of exchange, Bitcoin contains the fundamental properties of money—durability, portability, divisibility, uniformity, and limited supply—but lacks one important characteristic: acceptability. Bitcoin’s odds of reaching this final milestone are threatened by the basic psychology of power, fear, and sovereign nations’ ability to exert control over its money supply.
Within USSOCOM, early adoption of Bitcoin can provide a suite of tactical tools and options to counter Chinese expansion, enable human intelligence operations, and modernize frontline payment methods with the use of digital tokens and e-wallets.Lieutenant, United States NavyApproved for public release. Distribution is unlimited
