Fred Thiel, CEO of Marathon Digital Holdings (MARA), recently highlighted the national security importance of Bitcoin mining and reserves and stated that “Bitcoin is a National Security”.
At the HC Wainwright & Co. event on Tuesday at the Lotte New York Palace Hotel, a panel of crypto executives gathered to discuss the future of Bitcoin, with Fred Thiel, CEO of Marathon Digital Holdings (MARA), delivering importance of the national security implications of Bitcoin mining.
Thiel highlighted that Bitcoin mining is not just a financial activity but a national security issue for the United States. He stressed that if the U.S. does not maintain Bitcoin mining operations ongoing, it risks Bitcoin transactions. He also mentioned Russia’s emergence as the world’s second-largest Bitcoin mining as a clear example of the geopolitical competition surrounding the asset. In 2023 alone, Russia mined over $3 billion worth of Bitcoin, despite facing extensive international sanctions. Reportedly, this mining activity earned the Russian government around 50 billion Rubles ($556 million) in taxes.
Thiel’s perspective extended beyond national security concerns. He argued that Bitcoin acts as a valuable store of energy, highlighting its efficiency in converting energy into a portable and fungible asset. That he believes, in a future where home-based mining operations could become as common as solar panels or community-based power generation, making Bitcoin mining an necessary part of everyday life.
Thiel acknowledged the regulatory hurdles and market volatility that currently limit its widespread use in transactions. However, he believes that technologies like the Lightning Network and stablecoins can serve as temporary solutions to enhance Bitcoin’s transactional capabilities.
Thiel also covered the growing importance of central bank digital currencies (CBDCs), predicting that they will become critical for interbank transactions. However, he maintains that Bitcoin will continue to play a vital role in the broader financial system, especially as countries move toward digitalising their economies, with Bitcoin continuing to serve as a key asset for both individuals and nations
Thiel’s urgency comes around Russia’s increasing adoption of cryptocurrency to reduce the impact of economic sanctions made over its invasion of Ukraine. Russian Finance Minister Anton Siluanov recently announced plans to legalize cryptocurrency exchanges, marking a strategic move by Russia to strengthen its participation in the global crypto economy.
Thiel’s remarks underscore the need for the U.S. to maintain a competitive edge in the global cryptocurrency space, both in terms of mining capacity and Bitcoin asset holdings within U.S. companies.
Thiel’s insights at the event underline the growing importance of Bitcoin in global geopolitics and financial systems. He positioned Bitcoin as not only a tool for economic transformation but also as a critical asset tied up to national security. With Russia’s rapid expansion in Bitcoin mining and the shift of digital currencies, the U.S. must prioritize maintaining its dominance in both Bitcoin mining and asset holdings. Thiel’s vision for the future of Bitcoin includes economic infrastructure,strengthen its importance in how society handles both energy and financial systems
