Iran’s decision to accept Bitcoin as payment for oil shipping tolls through the Strait of Hormuz gave fresh weight to a question already circulating in Washington: does the US military actually understand crypto well enough to use it as a tool of national power?
A Waterway And A CurrencyUS Admiral Calls Bitcoin Key to Cybersecurity and Power Projection
Admiral Samuel Paparo sees Bitcoin as a strategic tool for U.S. cybersecurity and national power, emphasizing its proof-of-work advantages. (Read More)
“This is one of the most significant situations where Bitcoin is very clearly a strategic asset,” said Sam Lyman, head of research at the BPI. He added that Iran’s preference for BTC in certain transactions comes down to one thing: no one can freeze it.
That backdrop made what happened in a Senate hearing room on Tuesday all the more pointed.
What The Admiral SaidUS Navy Admiral Samuel Paparo appeared before the Senate Armed Services Committee to discuss the posture of US Indo-Pacific Command.
Crypto educator Matthew Kratter was unimpressed. He said online that the admiral sounded like he was reading off a Wikipedia page. Kratter said neither Paparo nor Senator Tommy Tuberville, who was also part of the exchange, appeared to grasp what they were actually talking about.
“These two guys are talking about something they don’t understand,” Kratter wrote. “All I could think is they’re saying absolutely nothing.”
Substance Behind The CriticismThe Bitcoin community’s reaction zeroed in on a basic concern: if the US military is positioning the crypto as a strategic asset, vague language about “computer science tools” and “power projection” doesn’t inspire confidence that decision-makers understand the network’s actual properties — particularly the ones that make it useful in high-stakes geopolitical situations.
That’s not a fringe use case. It’s a government and its military apparatus actively using the network — and doing so with apparent purpose.
Featured image from MetaAI, chart from TradingView
