BitopiaLand on Nostr: Bitcoin Hashpower: The New Metric of Global Power Bitcoin is poised to become the ...
Bitcoin Hashpower: The New Metric of Global Power
Bitcoin is poised to become the backbone of global financial transactions. Controlling Bitcoin hashpower—the computational force securing the network and publishing blocks—will soon become a strategic necessity for every nation.
By controlling hashpower, nations can safeguard their sovereignty, ensuring their transactions are prioritised. Additionally, it enables them to influence financial flows to benefit allies while obstructing rival nations from using the network.
Hashpower grants the ability to control the new financial system, forcing rivals to incur higher costs for participation—or excluding them entirely.
Much like control over oil pipelines or the U.S. dollar in the 20th century, hashpower will define nation state power in the 21st.
Nations failing to secure their share of hashpower risk financial serfdom and will lose their sovereignty.
Hashpower as a Strategic Asset
Hashpower controlled by a nation increases its likelihood of winning the next Bitcoin block, earning rewards through transaction fees and block subsidies.
Winning a block also grants the miner authority to decide which transactions to include or exclude. This capability enables nations to prioritise their own transactions while censoring those of rivals.
In a world increasingly dependent on Bitcoin for trade, this capability is as critical as a navy or air force was in the past.
Securing hashpower within national borders is a strategic imperative and should be a top priority for nations today.
Without hashpower, nations risk being at the mercy of others—a precarious position, as history has often shown.
Lessons from History: How Resource Control Shapes Power
History shows the significance of controlling essential resources. For decades, the U.S. has used its control of the world reserve currency, the dollar, to maintain global dominance.
The Roman Empire’s monopoly on salt—vital for food preservation—allowed it to assert economic dominance over dependent territories.
Similarly, during the 1600s to 1800s, the Dutch East India Company monopolised the Indonesian spice trade. Spices were popular in Europe and became a source of immense wealth and power for the Netherlands.
The U.S. imposed an oil embargo on Japan in 1941, cutting off critical energy supplies. This move significantly pressured Japan’s economy and contributed to its decision to escalate militarily (culminating in the attack on Pearl Harbor).
Just as salt, spices and oil defined geopolitical power in the past, Bitcoin mining is going to be the 21st-century equivalent.
Nations Competing for Hashpower
Several nations are already developing their Bitcoin mining sectors. Countries like El Salvador and Kazakhstan are incentivizing Bitcoin mining, while the U.S. has emerged as a global leader in this space.
The game theory of Bitcoin mining favours early movers; nations that establish strong mining sectors today will control more Bitcoin and reap greater benefits in the future.
Developing a thriving Bitcoin mining industry requires cheap energy, advanced technology, and manufacturing capabilities.
Additionally, geopolitical partnerships focused on Bitcoin mining and energy collaboration will become critical.
Smaller nations, such as Bhutan, must also navigate threats from neighbours that may seek to confiscate their mining resources through military means. Bhutan will probably have to “ally” with either India or China in order to survive.
"Hash Wars": Bitcoin Mining as the New Arms Race
The competition for hashpower will evolve into a geopolitical arms race. Max Keiser’s term “hash wars” perfectly describes this struggle, as nations vie to dominate Bitcoin mining.
Potential flashpoints include disputes over Bitcoin mining supply chains, technological know-how, and access to cheap energy.
Alliances for collaborative mining will emerge, but conflicts are inevitable. Economic sanctions could target nations’ hashpower, and in extreme cases, military action may be used to seize control over mining infrastructure.
Control over Bitcoin mining infrastructure will become as strategic as oil fields or semiconductor fabs.
A New Paradigm: Hashpower’s Rise
Bitcoin hashpower will surpass traditional metrics of geopolitical power.
Nations that fail to recognize this shift risk losing financial sovereignty and falling subordinate to those that act.
Policymakers must act now to secure their share of this critical resource—or risk falling into geopolitical irrelevance.
Bitcoin is poised to become the backbone of global financial transactions. Controlling Bitcoin hashpower—the computational force securing the network and publishing blocks—will soon become a strategic necessity for every nation.
By controlling hashpower, nations can safeguard their sovereignty, ensuring their transactions are prioritised. Additionally, it enables them to influence financial flows to benefit allies while obstructing rival nations from using the network.
Hashpower grants the ability to control the new financial system, forcing rivals to incur higher costs for participation—or excluding them entirely.
Much like control over oil pipelines or the U.S. dollar in the 20th century, hashpower will define nation state power in the 21st.
Nations failing to secure their share of hashpower risk financial serfdom and will lose their sovereignty.
Hashpower as a Strategic Asset
Hashpower controlled by a nation increases its likelihood of winning the next Bitcoin block, earning rewards through transaction fees and block subsidies.
Winning a block also grants the miner authority to decide which transactions to include or exclude. This capability enables nations to prioritise their own transactions while censoring those of rivals.
In a world increasingly dependent on Bitcoin for trade, this capability is as critical as a navy or air force was in the past.
Securing hashpower within national borders is a strategic imperative and should be a top priority for nations today.
Without hashpower, nations risk being at the mercy of others—a precarious position, as history has often shown.
Lessons from History: How Resource Control Shapes Power
History shows the significance of controlling essential resources. For decades, the U.S. has used its control of the world reserve currency, the dollar, to maintain global dominance.
The Roman Empire’s monopoly on salt—vital for food preservation—allowed it to assert economic dominance over dependent territories.
Similarly, during the 1600s to 1800s, the Dutch East India Company monopolised the Indonesian spice trade. Spices were popular in Europe and became a source of immense wealth and power for the Netherlands.
The U.S. imposed an oil embargo on Japan in 1941, cutting off critical energy supplies. This move significantly pressured Japan’s economy and contributed to its decision to escalate militarily (culminating in the attack on Pearl Harbor).
Just as salt, spices and oil defined geopolitical power in the past, Bitcoin mining is going to be the 21st-century equivalent.
Nations Competing for Hashpower
Several nations are already developing their Bitcoin mining sectors. Countries like El Salvador and Kazakhstan are incentivizing Bitcoin mining, while the U.S. has emerged as a global leader in this space.
The game theory of Bitcoin mining favours early movers; nations that establish strong mining sectors today will control more Bitcoin and reap greater benefits in the future.
Developing a thriving Bitcoin mining industry requires cheap energy, advanced technology, and manufacturing capabilities.
Additionally, geopolitical partnerships focused on Bitcoin mining and energy collaboration will become critical.
Smaller nations, such as Bhutan, must also navigate threats from neighbours that may seek to confiscate their mining resources through military means. Bhutan will probably have to “ally” with either India or China in order to survive.
"Hash Wars": Bitcoin Mining as the New Arms Race
The competition for hashpower will evolve into a geopolitical arms race. Max Keiser’s term “hash wars” perfectly describes this struggle, as nations vie to dominate Bitcoin mining.
Potential flashpoints include disputes over Bitcoin mining supply chains, technological know-how, and access to cheap energy.
Alliances for collaborative mining will emerge, but conflicts are inevitable. Economic sanctions could target nations’ hashpower, and in extreme cases, military action may be used to seize control over mining infrastructure.
Control over Bitcoin mining infrastructure will become as strategic as oil fields or semiconductor fabs.
A New Paradigm: Hashpower’s Rise
Bitcoin hashpower will surpass traditional metrics of geopolitical power.
Nations that fail to recognize this shift risk losing financial sovereignty and falling subordinate to those that act.
Policymakers must act now to secure their share of this critical resource—or risk falling into geopolitical irrelevance.