Bitcoin as Digital Warfare: A New Investment Paradigm
- mtradingmedia
- Mar 10
- 7 min read
Updated: Mar 16
Best Long-Term Investment
I’m not a fan of people who speak in terms of absolutes. Sure, there are many instances in life when things are black or white, true and false. But as traders and investors we inhabit a world of probabilities. So, with that said, I’ll try and refrain from speaking with absolute certainty on this subject, though I feel we’re as close to certain as you can get; BTC and its likely hood to be a significantly profitable long-term investment. It does make me recoil some as I type this out; regarding anything as a near certainty in trading or investing is regarded as a big no-no. I’ve thought long and hard about BTC over the years, read numerous books on it and have been a proponent of it ideologically; backed with my own money at times, but my motivation was driven by profit not ideals. While I was always in line with BTC ideologically since discovering it, I was always of the frame of mind that ideals don’t pay the bills. While there is truth to that statement, I suppose some ideas are powerful enough to pay the bills and some…... and this is one of them. I’m not kicking myself or anything of the sort because I think there is some merit to what I was thinking. Instead of tying up a lot of capital into something highly risky and volatile- Michael Saylor says this is a feature and not a bug- I had in my mind better bets I could make that would be a more efficient use of my capital. It’s been in the last four years or so that I’ve really become more in line with the HODL camp, with my convictions soaring in the last year or so.
When it looked like BTC ETFs were to become a certain thing, this is what tipped me over the edge. Large money managers adding BTC to the portfolio. Others who didn’t want to bother to figure out how to buy and store BTC themselves now have easier access via ETFs. There is a huge cohort of people out there with substantial wealth that didn’t and still don’t own BTC, now are given the opportunity to add some to their portfolio via the ETFs. I had the privilege of speaking with Bitwise CEO Hunter Horsely on the Confessions of a Market Maker podcast- Bitwise being one of the biggest BTC ETFs- who spoke to all the interest out in the investment world to own BTC and how little of them own any- this was a year ago.
Now we have a US strategic reserve, a “Crypto Czar” and a crypto summit being held at the white house today as I write this-3/7/25.
The previous administration wasn’t friendly towards the crypto industry; this administration is a complete 360. El Salvador and President Bekele had this vision years ago. I imagine this has the likelihood of causing a cascading effect as other nation states will be in fear of being left behind. While being a huge believer in BTC’s decentralized nature, it’s clear to me now that BTC is going to be backed with substantial money; money that is here to stay and not quick to sell. Mix that in with a supply of only 21 million coins; my mind goes to potential squeezes. Now just to address a concern or criticism one may say about governments buying BTC and that being in opposition to decentralization, this is faulty thinking. No one controls the BTC network, simple as that. It’s part of the genius of BTC. Anyone arguing otherwise has a faulty understanding. There are many out there who have misconceptions, though I can understand as a lot of things concerning blockchain, crypto and BTC can be tough to wrap one’s head around. This point about people’s misunderstanding, it still allows opportunity for those that do and still see potential for explosive upside.
The rest of this article I will list other reasons why I believe BTC is one of the best investments you can make in this current environment.
Your Not a Good Trader
Most overestimate their edge as a trader. For clarity, when I say “trader”, I’m specifically talking about some who day trades to short term swing trades. Majority of traders are better off picking a solid stock or index- or better yet BTC- and let the investment do its think. No chance of your discretion or meddling in the trade to screw it up. The smaller the time frame, the greater the randomness and variance in the market. On a shorter time frame your competing more with machines that will out execute you. Short term trading is grinding small edges; grinding small edges is difficult, no matter what “traders” on social media say. Investing in BTC, you don’t have to be good. You just need to not over allocate- but be aggressive if you feel inclined- and have nerves a steel. Though I think when you come to understand it, its not so tough of a hold
Large Money is Here and More is Likely to Come
BTC ETFs had the largest inflows in history for ETFs; Strong likely hood Nations start buying some for their reserves; limited 21 million supply. Many long-term big holders of BTC don’t seem keen on selling anytime soon. Could create explosive conditions.
Stop Thinking BTC is Too Expensive or Has Moved Too Far Already
This idea is a hard one for me to fathom or understand. It doesn’t matter how far BTC has ran up in its history. People rather gamble on shitcoins in hopes they get a huge multiplier and the fact that they’re cheaper per coin. It’s nonsensical to think that way. If BTC moves 10% and XRP moves 5%, which would you have made more money on assuming you invested the same USD equivalent? Dont think of the price, always think in terms of risk/reward. If you think some other coin has a chance to outperform BTC in the future and you have sound logic to it, I sincerely wish you luck. “But if your logic is BTC is too expensive I cant afford one coin, Ill pick something cheaper”…..this isn’t even remotely logical.
Superior Risk-Reward vs. Traditional Assets
Compared to stocks, gold, or real estate, BTC’s upside potential remains significantly higher, given its low global penetration (relative to gold or equities) and its asymmetric growth opportunity as a digital network. By low global penetration, I mean that Bitcoin is still in the early stages of mainstream adoption compared to other major asset classes like gold, equities, or real estate. Despite its growing recognition, the percentage of people and institutions holding meaningful BTC exposure remains relatively small. Estimates suggest that fewer than 5% of the world’s population owns Bitcoin in any significant amount. Compare this to the stock market, where hundreds of millions of people globally have exposure through retirement accounts, pensions, or direct investments.
Software
Alright this one is heavy. If any of you really want to get into the weeds of computer theory, military theory and power projection, and how BTC weaves into all three, give this fascinating theory a review. Admittedly, this is above my pay grade and was difficult to understand at first, but I believe I have got a solid grasp on it now. Proposed as a PHD thesis paper at MIT, Major Jason Lowry of the United States Space Force core argument is that BTC should be viewed as a national security asset rather than just a financial instrument. He frames Bitcoin’s proof-of-work (PoW) as a form of digital warfare—essentially, a non-lethal power projection system that allows nations and individuals to secure wealth without relying on traditional military force. This is free to read online and suggest those interested to give it a read. Below I’ll list some key points from the thesis.
Bitcoin as a Cybersecurity & Defense Tool
Traditional nation-states use military power to secure physical resources (gold, oil, land). Lowry argues that PoW mining is a new form of securing value digitally, reducing the need for kinetic (physical) warfare.
In a world where cyber warfare is escalating, Bitcoin mining acts as a digital fortress that protects financial assets from confiscation and attack.
Proof-of-Work as a New "Military" Strategy
Instead of using kinetic warfare to seize control over resources (e.g., gold reserves, oil fields), PoW mining allows entities to compete for economic resources without violence.
Essentially, Bitcoin mining is "economic warfare through computation"—nations that mine Bitcoin effectively gain sovereignty over their financial reserves.
U.S. National Security Implications
Lowry warns that the U.S. must embrace Bitcoin mining as a strategic asset or risk losing dominance to countries that do (China, Russia, Middle East, etc.).
He suggests that Bitcoin should be nationalized or at least deeply integrated into defense strategy, similar to how governments protect strategic industries like oil and rare earth minerals.
Final thoughts on Software
There is much more I didn’t touch on in the thesis. I’m sure it sounds far out to a lot of people. In an unstable geopolitical landscape, Bitcoin is more than just an investment—it’s a form of financial self-defense. Just as nations compete for military power, individuals and institutions will compete for Bitcoin, making it an asymmetric bet on the future of global power dynamics. Even if you don’t fully buy into Softwar’s theory, the asymmetric risk/reward of Bitcoin skyrockets if he’s even partially right.
Bitcoin’s risk/reward profile is so lopsided that even if you’re skeptical, it’s a bet you can’t afford to ignore. If Lowry’s thesis plays out? Bitcoin is radically undervalued. If it doesn’t? Bitcoin still has a strong case for being the best-performing asset of the next decade. Stay safe out there friends
-Ray (AllxDayxRay on X)
You can join Ray, along with JJ @vwaptrader1 and other professional educators who teach and trade live at https://microefutures.com/ where readers of this blog article can get a 7 day free no obligation trial.
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