Bitcoin is a weapon system, says U.S. Space Force, as Russia threatens a nuclear response

Key Takeaways:

  • U.S. Space Force sees Bitcoin having “strategic implications” for the way military works.
  • The crypto market might serve all sides as Russia threatens to escalate the Ukrainian conflict into a nuclear war.
  • The U.S. government sees Bitcoin as a treat to the SWIFT sanctions, and an “escape route” for Russia.

YEREVAN ( – U.S. National Defense Fellow Jason Lowery appeared in an interview with entrepreneur and crypto proponent Anthony Pompliano. Mr. Lowery discussed the function of Bitcoin in the modern monetary landscape, calling the crypto a “weapon system designed specifically for self-defense” that has “major national strategic implications.”

Bitcoin is a weapon, says the expert

Moreover, the expert called the blockchain system “literally nuclear resistant” and a great resource for the U.S. Government to consider, while Vladimir Putin threatened to use nuclear weapons in the ongoing war in Ukraine.

The cool thing about money is it can take any shape it wants. So, if you transpose money into a digital commodity and reestablish a power projection permissionless control structure over it, then what you’ve effectively done, is digitally transform warfare.

said Mr. Lowery.

Mr. Lawery published his perspective in the wake of Russia threatening to use their nuclear weapons if NATO intervenes on behalf of Ukraine. Moreover, the Kremlin put atomic missiles on “alert.”

This turn of events is remarkable, as less than a year ago, Putin and Biden attended the Geneva Summit and agreed that the threat of nuclear war was a “Cold War relic.” Furthermore, the Presidents commented that “nuclear war cannot be won and must never be fought.”

Also read: Ruble under threat as SWIFT bans Russia from global banking system; Bitcoin rebounds.

President Putin’s threat came in the wake of the U.S., the European Commission, and allies cutting several Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT). In so doing, they essentially denied Russia access to international banking, tanking Ruble in the process.

As a result Ruble value plunged by more than 20% in less than two weeks, forcing Russia to implement interest rate hikes to save the governmental currency. However, the ban on SWIFT might have strengthened the lean on cryptocurrency.

World’s first crypto war?

Meanwhile, the Washington Post called the war in Ukraine the “first crypto war,” as both sides increasingly use the crypto market as a tool that can move billions of dollars easily across borders. Tom Robinson, the chief scientist and co-founder of Elliptic’s crypto analytics firm underscored Bitcoin’s role in the conflict.

Because there is no central controller who can impose their morals on its user, crypto can be used to crowdfund for the Ukrainian army or help Russia evade sanctions. No one can really prevent it from being used in either way

said the expert.

Also read: Bitcoin charges $40k barrier as markets rise on hopes of Russia-Ukraine talks

Ukraine implemented crypto crowdfunding and raised $10 million in Bitcoin and Ethereum. Notably, Ethereum chief Vitalik Buterin and FTX exchange head Sam Bankman-Fried personally contributed to the cause.

Cryptocurrencies: opportunity or escape route?

Caroline Malcolm, Head of International Policy at blockchain analytics firm Chainalysis, agreed that Russia could use crypto as an “escape route.”

As with the traditional financial system, Russia can leverage cryptocurrency to evade the sanctions that are being put in place in response to their invasion of Ukraine.

commented the expert.

Additionally, the U.S. Treasury Department did not see crypto as an opportunity but rather an undermining factor to the U.S. sanctions.

These technologies offer malign actors opportunities to hold and transfer funds outside the financial system. They also empower our adversaries seeking to build new financial and payment systems intended to diminish the dollar’s global role.

stated a Treasury report.

Also read: Bitcoin falls below $35K, gold rallies as Russian army invade Ukraine.

During the interview with Mr. Pompliano, the U.S. National Defense fellow added that the authorities might not “fully appreciate” the unplanned change in the environment.

This constraint becomes EXTREMELY important in the presence of #bitcoin because users now have an option to exit USD & SWIFT at massive scale for near-zero marginal cost. This creates an “unplanned change” in the environment that IDK if authorities fully appreciate…

asserted Mr. Lowery.

Bitcoin rally ahead?

Also read: Bitcoin will not recover anytime soon, warns analyst as BTC sinks below $40K.

Mr. Pompliano noted several bullish on-chain metrics, foreseeing a price uptrend ahead. For example, the entrepreneur noted that over 76.5% of all BTC supply has not moved in the previous six months, which is an all-time high for Bitcoin.

Bitcoin, Bitcoin is a weapon system, says U.S. Space Force, as Russia threatens a nuclear response
76.5% of BTC supply has not moved in 6 months. Source:

Additionally, Mr. Pompliano cited the disbalance between whale holdings (accounts with large amounts of coins) and retail investors. According to the millionaire, the skew in favor of retailers speaks of “democratization” of Bitcoin, as the flagship crypto “serves its purpose” of decentralization.

Bitcoin, Bitcoin is a weapon system, says U.S. Space Force, as Russia threatens a nuclear response
Supply distribution between whales and retail investors. Source:

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