A recent online discussion explored whether countries might try to create their own Bitcoin-like systems. The conversation centered around the idea of Reusable Proof-of-Work (RPoW) networks and whether a single dominant network would emerge.
The Case for a Single Dominant Network
One expert, a US Space Force Major and author, argued that a single, dominant RPoW network is likely. He compared it to TCP/IP, the standard for internet communication. He believes that the security of an RPoW network directly relates to its size and computing power, creating a “reinforcing cycle” where everyone joins the biggest, safest network. This even includes rival nations who might become unlikely allies, strengthening each other’s security by being on the same network. He termed this “Mutually Assured Preservation.”
He strongly believes Bitcoin is already that dominant network, due to its size and popularity. While not calling himself a “Bitcoin Maximalist,” he sees Bitcoin as the de facto global standard.
Individual Ownership and Government Control
Questions arose about individual Bitcoin ownership if governments consider Bitcoin “The Standard.” The expert believes that if Bitcoin becomes a global currency, its value will naturally increase, making other investments unnecessary. He warned, however, against trusting centralized services with your Bitcoin, suggesting that governments might seize assets held by these services.
Could Governments Create Their Own Networks?
The possibility of governments creating their own RPoW networks was also discussed. The expert pointed out that Proof-of-Stake (PoS) systems are much better suited for centralized control than Proof-of-Work (PoW) systems. A government could easily create a PoS system and control it, while a PoW system would be much harder to control. While a government could create its own RPoW network, it would be far more difficult and less efficient than using PoS.
The Bottom Line: Bitcoin’s Advantage
The overall conclusion was that the “game theory” of the situation favors a single, dominant PoW network, and Bitcoin is currently in the lead. While governments might try to create alternatives, they face a significant challenge competing with Bitcoin’s established position and network effects.
