{"id":14788,"date":"2025-02-24T23:31:35","date_gmt":"2025-02-24T23:31:35","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=14788"},"modified":"2025-02-24T23:31:35","modified_gmt":"2025-02-24T23:31:35","slug":"will-nations-fight-bitcoin-with-competing-pow-game-theory-explained","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=14788","title":{"rendered":"Will Nations Fight Bitcoin With Competing PoW? Game Theory Explained"},"content":{"rendered":"
\n

In a discussion on X, Jason Lowery debated the viability and future of Reusable Proof-of-Work (RPoW) networks\u2014particularly whether nations might attempt to create competing proof-of-work systems. The conversation was sparked by an inquiry from Rabbit Hole Investor (@rabbitholeinvst) directed at Lowery, an astronautical engineer, Major in the US Space Force, and author of the \u201cSoftwar\u201d thesis. Lowery\u2019s thesis emphasizes Bitcoin\u2019s strategic importance for US national security.<\/p>\n

Can Nation-States Fight Bitcoin With Their Own PoW Network?<\/h2>\n

Rabbit Hole Investor asked Lowery, \u201cDo you see a future where other reusable proof of work networks are created for other applications?\u201d Lowery responded by referencing questions he previously received from the White House Office of Science & Technology Policy.<\/p>\n

He stated<\/a> that while he cannot predict the future with absolute certainty, he believes there will be a dominant RPoW network that gains universal acceptance in much the same way that TCP\/IP became the global standard for data transport: \u201cThis was one of the questions I received from the White House Office of Science & Technology Policy. [\u2026] My intuition is that a single dominant Reusable Proof-of-Work (RPoW) network will emerge as the primary standard\u2014much like how TCP\/IP became the universal protocol for data transport [\u2026] In RPoW, network size directly translates to security. [\u2026] This consolidation of all RPOW applications into one RPOW network [\u2026] is a strategic necessity.\u201d<\/p>\n

He elaborated on how RPoW\u2019s security scales with computational power and energy expenditure, creating a \u201creinforcing cycle\u201d that naturally incentivizes participants to migrate to the largest and most secure network. Lowery pointed to what he calls \u201cMutually Assured Preservation,\u201d where even adversarial nation-states (e.g., NATO and BRICS<\/a>) would effectively become \u201cfrenemies\u201d on the same RPoW network. According to his assessment: \u201cThe cost of attacking either side increases to such an extent that they become \u2018frenemies,\u2019 each strengthening the security of the other\u2019s interests on the same network.\u201d<\/p>\n

Lowery\u2019s stance leans strongly toward Bitcoin as the dominant RPoW protocol. While he does not label himself a \u201cBitcoin Maximalist,\u201d he makes it clear that Bitcoin is the de facto global PoW standard due to market forces and network effects.<\/p>\n

Thomas Young, Managing Partner at RUMJog Enterprises, further probed Lowery\u2019s thesis by asking about individual Bitcoin ownership and the monetization potential for BTC in a world where nation-states treat the network as \u201cThe Standard\u201d: \u201cWill it be practical for individuals to own privately held BTC? \u2026 Specifically, would interested nation states \u2018rent\u2019 privately held BTC to misattribute or create diversification or will they simply want to own their own BTC?\u201d<\/p>\n

Lowery replied: \u201cI\u2019m a subscriber to the belief that if Bitcoin becomes a global unit of account, its purchasing power will naturally increase as humanity grows more productive. This makes the need to chase yield obsolete\u2014unnecessary, even. Bitcoin itself is the yield.\u201d<\/p>\n

He then shared a cautionary perspective on the promises of yield in a future where governments might adopt executive orders to seize custodial BTC. According to Lowery: \u201cIf I were a nefarious president or nation, I\u2019d lure people into giving up self-custody of their BTC by dangling the promise of yield\u2026 Then, with a simple executive order, I\u2019d nationalize NYDIG, Coinbase<\/a>, and MSTR\u2019s Bitcoin\u2026 This is why I don\u2019t own MSTR. MSTR\u2019s Bitcoin is a future president\u2019s honeypot\u2026 When the next EO6102<\/a> inevitably comes, it will be widely supported.\u201d<\/p>\n

Another user asked Lowery whether sovereign entities might create their own networks\u2014for instance, sidechains or drivechains pegged into the main Bitcoin network\u2014under their sovereign control. Lowery responded by contrasting PoW and Proof of Stake (PoS)<\/a> in terms of centralization: \u201cIf the goal is sovereign control over a network, then PoS is a far better design than PoW\u2026 A nation (or any entity) could simply pre-mine the tokens, distribute them to itself, and implement a vote-based PoS system\u2026 This structure would ensure that control remains centralized\u2026 while still maintaining the (false) appearance of a decentralized system.\u201d<\/p>\n

He acknowledged that a nation could create an RPoW network with centralized administrative control, but he considers this approach more complex and less efficient compared to a straightforward proof-of-stake system for achieving centralized governance: \u201cPoS offers a more direct and practical way to achieve centralized control over a digital asset network without the computational and energy-intensive requirements of PoW.\u201d<\/p>\n

The overarching theme of Lowery\u2019s commentary is that game-theoretic pressures\u2014both among individuals and nation-states\u2014tend to favor consolidation around a single, most secure PoW network. He argues that Bitcoin\u2019s sheer scale and entrenched position give it a near-insurmountable lead. Meanwhile, nations seeking control might experiment with alternative protocols, but ultimately face a steep uphill battle competing against what has already been embraced by \u201cthe free and open market.\u201d<\/p>\n

At press time, BTC traded at $95,937.<\/p>\n

\"Bitcoin<\/div>\n","protected":false},"excerpt":{"rendered":"

In a discussion on X, Jason Lowery debated the viability and future of Reusable Proof-of-Work (RPoW) networks\u2014particularly whether nations might attempt to create competing proof-of-work systems. The conversation was sparked by an inquiry from Rabbit Hole Investor (@rabbitholeinvst) directed at Lowery, an astronautical engineer, Major in the US Space Force, and author of the \u201cSoftwar\u201d […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-14788","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/14788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14788"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/14788\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}