Skeptics question Pentagon's alleged foray into cryptocurrency market
The Bitcoin community has expressed skepticism about the US government's grasp of the Bitcoin network, following a testimony by a high-ranking military official before the Senate Armed Services Committee on Tuesday. The official, US Navy Admiral Samuel Paparo, claimed that the US government operates a Bitcoin node, prompting criticism from Bitcoin advocates. According to Admiral Paparo, the US government's research into Bitcoin focuses on its technical aspects, including cryptography, blockchain, and proof of work.
However, Bitcoin educator Matthew Kratter dismissed Admiral Paparo's statement as simplistic, suggesting that it sounded like he was reciting from a Wikipedia page. Kratter questioned the admiral's and US Senator Tommy Tuberville's understanding of the Bitcoin protocol, stating that their comments lacked substance. Journalist Lola Leetz also criticized Admiral Paparo's testimony, describing it as "incoherent babbling."
The testimony came on the heels of an announcement by the Iranian government that it would accept Bitcoin as payment for shipping tolls through the Strait of Hormuz, a vital waterway that accounts for approximately 20% of the global oil supply. This development has bolstered Bitcoin's position as a strategic asset, particularly in the context of current geopolitical tensions. Iran's decision to accept Bitcoin, along with Chinese Yuan and US dollar-pegged stablecoins, underscores the cryptocurrency's value as a means of facilitating international transactions.
According to Sam Lyman, head of research at the Bitcoin Policy Institute (BPI), the Iranian government prefers dollar-pegged stablecoins, but Bitcoin's inherent properties make it an attractive option. Lyman noted that stablecoins can be frozen by their issuers, whereas Bitcoin's decentralized nature makes it immune to such restrictions. This characteristic has significant implications, as Lyman pointed out that "no one can freeze Bitcoin" and "no one can shut down the Bitcoin network." The Iranian Revolutionary Guard Corps' substantial involvement in the country's crypto market, accounting for nearly half of the total market volume, further highlights the importance of Bitcoin in this context.