Did the NSA Create Bitcoin to Usher in One World Currency?

Via The Daily Bell

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?

The NSA wrote a paper in 1996 that some say lays the groundwork for Bitcoin.

This is another fact that sounds pretty damning. But again, this is one of the functions of the NSA. They explore cryptography and its applications. There are certainly similar elements between the NSA outline and Bitcoin. But the paper is still relatively broad.

And the paper was never kept secret, it was published. The real Satoshi Nakamoto could have read it and got some ideas. He, or whatever organization the name represents, would have done their research to review published material on the subject of cryptocurrencies.

It’s really no more nefarious than seeing elements of British Common Law in the American Bill of Rights. That doesn’t mean the British infiltrated the new American Congress.

Some claim that Satoshi Nakamoto can be translated to “Central Intelligence.” And we all know that much like serial killers, the government loves to leave little breadcrumbs hinting at their evil plans.

But translating Japanese is not that simple. As this Steemit article points out, the translation is just as likely to mean, “A clever chronicling of history as a book that is in the process of happening and throughout (all nodes).”

But even if the NSA or CIA created Bitcoin, so what? The US government created the internet, and then the market ran with it and created the most individually empowering platform that ever existed. We shouldn’t throw the baby out with the bathwater.

Bitcoin isn’t the only cryptocurrency out there. Even if the NSA or CIA did create Bitcoin, they inadvertently spurred a competition for the best cryptocurrency. If they created it to fund their own terrorist organizations, that means it is a useful financial tool.

Now I understand if you want to stay away from anything associated with these nafarious organizations. I am no cryptography expert. I cannot say for sure how likely it is that the government has a backdoor or vulnerability built into Bitcoin to steal or manipulate the cryptocurrency.

From my own research, that seems relatively unlikely. But if you disagree, simply divest in Bitcoin, and diversify into other cryptocurrencies untainted by the U.S. government.

That’s the great part about a market for currencies. There are other choices. Unlike the U.S. dollar, you are not forced to use Bitcoin.

A Note on the Conspiracy Loop

Conspiracy theories lend themselves to a never-ending feedback loop.

Sure, it could all be true. But it could just as easily be reverse psychology.

Perhaps Bitcoin is such a promising tool to free people from central banking, that they are desperate to discredit it. What better way than to convince people it was created by the NSA or CIA?

The government’s best tool is convincing everyone they are omnipresent. Seeing agents in everything paralyzes people with inaction. Better to accept the fact that the government has infiltrated certain aspects of society. Armed with that knowledge, you can live your life without self-imposed exile.

Don’t base your decision on an unproven conspiracy theory.

If you do, it is a flip of the coin. Maybe avoiding Bitcoin saves you some money and disappointment when the NSA exploits it. Maybe you miss out on a promising technology devoid of NSA influence.

You really can’t make a definite determination about Bitcoin based on the information available. Therefore the best course of action is to do what you were going to do anyway.

For me, that means holding some Bitcoin. If I lose it all, oh well, c’est la vie! If it goes to the moon, great, I will take some off the table. If it eventually becomes a stable and widely accepted currency, yay, that’s what I wanted all along.

And if our shadowy globalist elite bankster deep state overlords plunge us into a 10,000-year war with Satan himself leading the dark armies, then what the hell was I going to do about it anyway?


Shitonya Serfs JRobby Tue, 01/30/2018 - 15:08 Permalink

"The US government created the internet, and then the market ran with it and created the most individually empowering platform that ever existed."


Yes, individually empowering platform, controlled by a handful of companies with ties to the CIA, NSA, Moosad.

In reply to by JRobby

WarPony Shitonya Serfs Tue, 01/30/2018 - 15:13 Permalink

Yep.  Hanging around the Phoenix's neck in the Sept. 1988 edition of Rothschild's Economist mag.  Now with the Yuan in the SDR basket, one good kick in the global-economy nuts and you will see an IMF, SDR-backed crypto-world currency introduced and RFID chip-wallets for all who will accept.  Georgia Guide stones here we come.

Quoting Soros on bitcoin: (approx.): "It can never be regarded as a currency because it is too volatile"

Volatility, meet IMF SDR.

In reply to by Shitonya Serfs

Stuck on Zero DownWithYogaPants Tue, 01/30/2018 - 16:21 Permalink

I definitely disagree with this statement: "The US government created the internet."

The government funded ARPANET which was a clumsy system for poking around files on computers at government labs and universities. I used to use it. It was really the browser that created the Internet. Netscape, Mozilla, AOL really moved the public onto the backbone. From that point onward it evolved to what it is today with 99% non-government entities doing the heavy lifting.

In reply to by DownWithYogaPants

snblitz Stuck on Zero Tue, 01/30/2018 - 19:08 Permalink

Wow, who knew I invented the Internet. I developed MPRESS well before Netscape existed and it was in use by about 1000 companies. It was a troff derived publishing platform for the late arpanet early internet. It had its own viewer based on DRI GEM **and** it could run downloadable code too.

When we finally turned MPRESS support off because Netscape was all anyone cared about we actually got a bunch of calls from people complaining.

In reply to by Stuck on Zero

HenryKissinger… Lost in translation Wed, 01/31/2018 - 04:20 Permalink

have you read :

-Kevin Kelly 's 1994 book "Out of Control: The New Biology of Machines, Social Systems, and the Economic World" (chapter 12 E-money) or


bitcoin started in 2009, so think about it...

I am not saying bitcoin isn't GREAT to teleport money without been taxed or forfeitured, but:

"Every digital payment service should abide by KYC and cooperate in all law enforcement initiatives regarding cybercrime conspiracy, or it should be shut down. .. Virtual currencies who refuse to know their customers or freeze accounts of those engaged in criminal conspiracies should be subject to Treasury Executive Office for Asset Forfeiture (TEOAF)."



In reply to by Lost in translation

Crawdaddy Stuck on Zero Tue, 01/30/2018 - 19:33 Permalink

The browsers are the NUMBER ONE target so they are all owned by the bad guys. Anytime a new browser that subverts the squid data collector pops up it is quickly borged.

The backbone and the majors are and always have been big gov owned and operated. Goog, FaceButt, backbones, amz, all of the biggies who seems to survive decades on no profits, those are the most easily identified shadow gov front companies. 

In reply to by Stuck on Zero

Consuelo ultraticum Tue, 01/30/2018 - 15:47 Permalink

Indeed it was quite clever ---- I mean, well thought-out...   In fact, there is a name (which escapes me at the moment) for just the kind of retort that TDB provides here.   It has something to do with 'front running' an argument, or 'framing a debate' with one's own terms, thereby 'disarming' your opponent before any real honest debate can proceed (slinging the 'conspiracy theory') canard comes to mind...


In reply to by ultraticum

runningman18 VWAndy Tue, 01/30/2018 - 14:29 Permalink

I like the Daily Bell but this article is idiotic.  Where there's smoke there's most likely fire, people.  The NSA dominates the internet and uses it for evil, it's hardly a good example of a government created system that turned out fine for the public.  They also forgot to mention that all the major banks and central banks are excited about blockchain and crypto, and are building all the infrastructure that's made bitcoin so popular.  Plus, you have the mainstream media hyping bitcoin non-stop for the past year at least.  Even if the banksters didn't create bitcoin and blockchain tech (and that's a BIG "if"), they obviously aren't threatened by it.  They love it.        

In reply to by VWAndy

konputa Golden Phoenix Wed, 01/31/2018 - 07:15 Permalink

Look Golden Showers, the precedent is there, insofar as the NSA has compromised multiple 3rd parties and continues to do so as part of its core mission. Why are we to believe that in house encryption, designed for public consumption, no less, would not include this functionality? The suggestion that a product designed by the NSA won't already include this functionality is something that just strains credulity.

In reply to by Golden Phoenix

VWAndy runningman18 Tue, 01/30/2018 - 14:46 Permalink

  The clues are not hard to spot if you are looking for them.

  One clue I find worth looking for is the magic bean line. People do this thing where we read shit into things that just aint there. I do it too. Everyone does it to some extent. So I got me this three magic bean rule. Or as a friend of mine calls it the hop skip and jump rule. You know the person is dreaming if the thing they believe in demands three or more magic beans to fly.

  Its not a good MOE

 Its not safer

 No electronic device is secure able on line

In reply to by runningman18

any_mouse Tue, 01/30/2018 - 14:13 Permalink

"It’s really no more nefarious than seeing elements of British Common Law in the American Bill of Rights. That doesn’t mean the British infiltrated the new American Congress."

Since the Founding Fathers were all British nobility, members of the Peerage, the British did not have to infiltrate, they were there all along.

BigJim any_mouse Tue, 01/30/2018 - 14:31 Permalink

I thought this was a poor analogy:

But even if the NSA or CIA created Bitcoin, so what? The US government created the internet, and then the market ran with it and created the most individually empowering platform that ever existed We shouldn’t throw the baby out with the bathwater.

A better analogy to internet and the content that rides on it, would be if the government had created blockchain and BTC were privately created.

Not that it matters particularly; I missed the moonshot, and am sure as hell not buying in now it's burbling around USD10k

In reply to by any_mouse

Jay Tue, 01/30/2018 - 14:26 Permalink

This is the best article I've seen that skewers all the goofy conspiracy theories. I guess it's much easier to spew goofy conspiracy theories than read and learn about cryptos. The PM coin dealers generate most of the FUD. They sure can't stand to have cryptos move into their space.

snblitz Jay Tue, 01/30/2018 - 20:47 Permalink

It am a bitcoin miner having started back in 2012. I think bitcoin has failed to meet all of its original goals **and** the claims made for it today. Please point to or write a claim about bitcoin and I would be happy to prove it false.

irreversible ledger - nope.
fast transactions - nope.
cheap - sometimes.
anonymous - nope.
Can you transact directly yourself? - sure just setup a machine with a good CPU and 150GB of disk space, wait 3 days for the blockchain to download, and then keep up.
That is some requirement just to commit a transaction. Oh, and you have to beg to the miners to include your transaction in their blocks generally with payola (its called paytxfee in the core bitcoin client), and then wait an hour or so.

The truth is the hype is always about what it is going to be. Never about what it is.

In reply to by Jay

Golden Phoenix snblitz Wed, 01/31/2018 - 00:36 Permalink

If you put $100 into a crypto paper wallet and set it aside for 30 years it may or may not be worth anything at all at the end.

If you put $100 fiat in a bank and forget about it for 30 years you'll probably be underwater in fees and have to pay the bank $500 just to get them to zero out the account and close it.

Crypto is about alternatives. On that front it has delivered. That's all that's needed though much more is on the way.

In reply to by snblitz

JibjeResearch Tue, 01/30/2018 - 14:27 Permalink

If they did, they fucked up really bad...

With decentralized blockchain, true democracy is possible.  If there is democracy, you can't have one world.

BWahahah ahahahahaha