It is true, the National Security Agency created part of the code for Bitcoin.
When you first hear that, it is pretty jarring. It seems like a smoking gun! Case closed, conspiracy theory proven.
But the NSA creates a lot of cryptography code. Some of it works and is widely adopted.
The piece of the Bitcoin code created by the NSA is a hash function called SHA-256. SHA stands for Secure Hashing Algorithm. The hash is the expected outcome. An algorithm can be executed on a piece of data, and the output of that algorithm should match the hash. But you can’t figure out what the data was with just the hash. It only works in one direction. And there are enough different combinations that it is virtually impossible for any two pieces of data to create the same hash.
SHA-256 is not unique to Bitcoin and the NSA. It is used widely, including in SSL certificates to encrypt small data files. Even if someone changes one piece of the file, the hash also changes, and the receiving computer will recognize this by comparing the expected hash with the received hash. This prevents data from being intercepted and changed without detection before reaching its final destination.
That is also the premise behind how SHA-256 is used to create new blocks which represent a newly mined Bitcoin. If anyone tries to falsify any preceding block, the chain of blocks–or blockchain–is disrupted, and the hash will not match.
Yes, the NSA created a piece of the Bitcoin code. No, that is not as actually as sketchy as it might seem.
People are concerned that they installed a “backdoor” in the SHA-256 code to hack and manipulate Bitcoin. But the code is open source. It seems unlikely that of all the experienced people and organizations poring over the code, no one would have noticed a vulnerability.
The Bitcoin One World Currency Conspiracy Theory
The Natural News version of the theory goes something like this.
The government invents Bitcoin to get people excited about digital currency. Then they create their own, or partner with a mainstream bank to create digital cash.
Next, they initiate a global scale false flag attack, like a fake alien invasion, an electromagnetic pulse from North Korea, or a terrorist attack on the power grid. This chaos tanks the economy and the financial system. They blame Bitcoin for funding the terrorists (or aliens?) and outlaw it.
Then the government “saves the day” with their own cryptocurrency, and allows everyone to trade in their fiat dollars for the digital token. The government’s digital token tracks every financial transaction you make. They outlaw Bitcoin, gold, silver, and cash in the name of security so that terrorism cannot be funded.
Then some Biblical prophesies get brought in, and the government requires their crypto transactions be authenticated with RFID chips: the mark of the beast! So no one can transact in the economy without a tracking chip.
The government has complete control over the population. They can roll out automatic taxation, negative interest rates, and any other kind of control they want.
The creator of Natural News, “The Health Ranger” Mike Adams, concludes: “How do you feel about Bitcoin now?”
Well damn Mike, that sounds pretty scary! You know, I check my closets and under my bed after watching horror flicks too. That doesn’t mean being scared has actually increased the risk of a spooky story coming true.
Natural News has some good content. I like what Mike Adams does in general. But he has a clear bias against Bitcoin and basically flings crap against a wall until something sticks.
Take Bitcoin out of that conspiracy theory, and nothing changes. Bitcoin is not at all an integral part of that scenario. Insert cash where it says Bitcoin. And insert digital-cash in place of government-sponsored cryptocurrency. Government creating Bitcoin is an unnecessary extra step.
It’s not that I think the government wouldn’t try (or want to try) that scenario. But I do have serious doubts about their competence to carry it out.
Mike has also criticized Bitcoin speculators for thinking the government is going to allow them to hold onto their gains. So I guess people are supposed to abandon technological progress if the government is likely to outlaw it down the road. Might as well abandon gold and silver while we are at it since those will also be outlawed in his scenario.
In fact with this doomsday attitude that resistance is futile, why bother owning guns, collecting rainwater, or doing anything else to prepare for disaster? Does Mike really think the government is going to let him keep his ammo and solar panels?
He also criticizes Bitcoin enthusiasts for participating in a bubble, Ponzi scheme, or tulip-mania. That’s possible, but then why would these people have to fear the government outlawing something that is going to destroy itself anyway?
Mike has intelligent well thought out insights on many subjects. Bitcoin is not one of them.
So Did the NSA Create Bitcoin?
Source/More: Did the NSA Create Bitcoin to Usher in One World Currency? | The Daily Bell