The War Stage (The Blackout War Book 2)

by Andrew Watts

  Chase said, “Let’s talk about that. What is going on there? On Abu Musa?”

  Gorji gestured to the group of thick leather chairs in the center of the room. “Come, sit with me for a moment. I am tired of standing and this will take some time to explain.” The three men sat.

  Gorji said, “What do you know of the name Nakamoto Satoshi?”

  Chase said, “I recognize the name. He is supposedly the creator of bitcoin, right?”

  Gorji nodded. “In 2008, a person or group of persons published a white paper describing the bitcoin digital currency. The document was published under the name Nakamoto Satoshi.”

  Waleed said, “I heard that the name Satoshi was a pseudonym.”

  Gorji said, “Whether Nakamoto was really one person or many, no one knew. The modern legend that formed would have you believe that a single mysterious man began to collaborate with software developers for the next two years, at which time he handed over control of the source code and other important information to several prominent members of a now-loyal bitcoin community. This Nakamoto Satoshi created the world’s first widely used digital currency. Bitcoin is untraceable and therefore untaxed. Every transaction is uploaded into the bitcoin network of users. Unlike paper money, which can be created by governments, bitcoins are in limited supply, one of their two value drivers.”

  Chase said, “What does this have to do with Abu Musa?”

  Mr. Gorji held up a hand. “We’ll get to that. The other driver of bitcoin’s value is demand. This is basic economics. Supply and demand together will meet and support a given value. It is important that you understand how bitcoin is different than paper money. Let me ask you something, do you know how much money the US Treasury prints each day?”

  Chase shook his head.

  “I do. I have had to study these things in preparation for Iran’s shift to the bitcoin-backed currency. The US Bureau of Engraving and Printing creates thirty-eight million notes a day. That’s over five hundred million US dollars created by the American government each and every day. Now, the vast majority of that is used to replace what’s already in circulation. They are making old dollar bills look new. But the point is, the American regulators and other national currency regulators around the world control the rate at which they pump money into their currency supplies. And what happens if you pump more money into a currency supply?”

  Chase said, “Inflation.”

  “Correct.” Gorji smiled. “As long as politicians and government regulators continue to print money faster than it disappears, the value of that money decreases. A dollar today will be worth less tomorrow. Another way of saying it is that a loaf of bread, or a car, or a house will cost you more tomorrow.”

  “But you are telling me that bitcoins are different?”

  “That is right. Bitcoins, like gold or diamonds, are a scarce resource. And now that enough people have started to assign value to bitcoins, there is a sufficient demand that it can actually be used as a currency.”

  “I still don’t see how something digital can be a scarce resource.”

  “Chase, how do you acquire gold?”

  “Usually the process starts by meeting a very attractive woman. I guess that’s what you called demand creation. Most women I meet are very demanding on that front. Afterwards, I go to a jewelry store.”

  The two other men laughed. Gorji persisted. “But how do you get the gold? Not from the store. How do the jewelry makers get gold?”

  “Gold mines?”

  Gorji pointed at him. “Precisely. Mines. You see, bitcoins are based on a series of mathematical equations, many of which remain unsolved. These unsolved equations are like unmined gold. They are rare, sought after, and can be unlocked if you have the right equipment—which in this case is a powerful computer. The bitcoin code was written so that only twenty-one million bitcoins can ever be unlocked through the solving of these equations. Today, we have ‘mined’ about fourteen million of them. As each equation is solved, it unlocks another equation. Sets of them, really. And each equation gets exponentially harder to solve than the last. They are so hard to solve that they require more and more advanced computers to solve them. This has created a whole industry of bitcoin miners. Factories of computers linked together with only one purpose—solving the bitcoin equations to unlock more bitcoins.”

  “So who gets the bitcoins when they are unlocked?”

  “Whoever mines them.”

  “How much are they worth?”

  Gorji said, “Like I have said, supply and demand change. Last week, they were worth about four hundred dollars each. With the announcement of the Dubai Financial Exchange starting, the value has gone over six hundred dollars each. When word spread that China was going to back the RMB with bitcoin reserves, it went to fifteen hundred dollars, and it is still rising. And as the bitcoin supply runs out and demand increases, their value should continue to increase as well.”

  Chase said, “Remind me why this is relevant to my firm? Because it’s untraceable?”

  Waleed said, “Yes. People who use bitcoins don’t need to ever involve a bank, because all transactions are stored in the bitcoin peer-to-peer network. When Nakamoto Satoshi published his white paper in 2008, bitcoins were just a collection of software and ideas. They were worth nothing. Then, a few early adopters began exchanging them for goods and services. Eventually, one man even purchased a pizza in bitcoins. He had to get another man, half a world away, to facilitate the transaction and exchange another currency for the pizza, but it worked nonetheless. Almost overnight, bitcoins had actual value. They were worth only a few cents at first. But like gold and silver and Dutch tulips—once more people began trading bitcoins, exchanges popped up. There were crashes and software glitches and arrests and scandals. But bitcoins quickly grew in value.”

  “A pizza, huh?”

  “Yes. But there is an important lesson there. As new currencies are adopted, there must be an exchange to provide liquidity. Many do not trust the bitcoin network. They are afraid of keeping their money in bitcoins because they are afraid that it will disappear. Because it is digital.” He shook his head and laughed.

  “Why are you laughing?”

  “Because everyone’s money is held digitally today, most people just don’t think about it. Banks are all online. And your money can disappear there just as easily. But people trust what they know. They trust the current system. But the Dubai Financial Exchange and the bitcoin-backed currency will change all of that. This is what I believe.”

  “So you think that this will be the start of a truly wide adoption of bitcoin.”

  “I believe it will spur the global adoption of a decentralized digital currency, yes. Whether it is bitcoin or not, that could change. But for now, bitcoin is the most valuable and liquid option. This is the tip of the iceberg, as the expression goes. Mr. Jinshan calls it The Great Rebalancing. It will change the economics of the world. No longer will the United States have an advantage like it once did.”

  Chase said, “Mr. Gorji, I appreciate the education, but again, what does this have to do with Abu Musa?”

  “I will explain. In 2013, the amount of bitcoin that Nakamoto Satoshi supposedly owned would have meant that he was a billionaire in US dollars. Yet no one had ever seen him. He had been almost completely silent on the message board that he once used to communicate to his bitcoin disciples. Why would a genius who had created such an innovative technology remain in hiding? How, in this day of social networks, video omnipresence, and twenty-four-hour newsfeeds, is it possible that such a rich and famous man’s true identity is unknown?”

  Chase frowned. “No one has ever seen this guy?”

  He ignored the question. “Over the years, dozens of potential Nakamoto Satoshis have been ‘outed’ by the press. One was a legal scholar and cryptographer from the United States. Another was a Japanese-American physicist and systems engineer. One news source claimed that Satoshi was actually a group of exceptional computer programmers fro
m several different nations.”

  “That’s unbelievable.”

  “I agreed with that sentiment. A few years ago, Mr. Jinshan approached my country with the idea of shifting to a bitcoin-backed currency. Iran did not want to shift to a volatile currency without fully understanding its origins, no matter how bad our inflation was. So I was asked to investigate the true identity and whereabouts of Nakamoto Satoshi.”

  “What did you find?”

  Gorji didn’t answer the question. “Today, as millions of people around the world are beginning to adopt the use of this new digital currency, regulators and banks are scratching their heads, still trying to figure out who created it. Large American investments banks are now investing in it. Bitcoin ATMs are popping up around the globe. They are in especially high demand in nations with declining currency. Popular websites are allowing consumers to pay using bitcoin. And all the while, its true origins remain shrouded in mystery.”

  Waleed looked intrigued. It appeared this was the first that he was hearing of Satoshi’s whereabouts. He said, “Come, Ahmad, don’t keep us waiting. What did you find?”

  Gorji said, “So Jinshan approached the Iranian government with a proposition. Bitcoin was becoming larger, and he had a solution that would solve Iran’s inflationary and economic woes. We agreed to allow one of Jinshan’s companies to set up buildings on Abu Musa. A very secretive project that would give Iran an advantage if and when the bitcoin-backed currency project launched.”

  Waleed and Chase looked at each other, alarmed.

  Gorji continued. “Jinshan funded the entire thing. He only asked for support from some of our IRGC components. We thought that it was strange, but the request was granted. He was a very smooth talker. They set up bitcoin mines on Abu Musa. Huge ones.”

  Chase said, “So that’s what this is all about? Abu Musa has bitcoin mines?”

  “Abu Musa has bitcoin mines. Enormous buildings filled with computers with a single task. Solve the mathematical equations that unlock new bitcoin block chains. Jinshan split the profits with Iran. Once the Iranian leadership saw the promise of the investment, and at Jinshan’s request, we gave him more control over the operation. A lot of things went on there that the Iranian leadership wasn’t privy to. Let me ask you another question. Do you know where most of the world’s bitcoin mines are?”

  “No.”

  “China. Almost two-thirds of all bitcoins are mined in China. And about eighty percent of all bitcoin is traded in Chinese yuan.”

  Chase said, “So why would Jinshan want to open up new bitcoin mines on Abu Musa if they already have all of that going on in China?”

  “Why indeed? This is the thought that bothered me a few years ago while I was in the midst of investigating Satoshi’s true identity. So I began to conduct occasional inspections of the Abu Musa facilities.”

  Waleed said, “What did you find?”

  “The bitcoin mines on Abu Musa are not just any mines. These mines have been set up to connect with the undersea cables that transfer information between the new Dubai Financial Exchange and the rest of the world. The bitcoin mines on Abu Musa are special.”

  “How so?”

  “Believe me, I have been trying to find out, but even I don’t fully know. But my theory is that this setup will allow Jinshan to artificially manipulate the currency. Either way, Jinshan’s operation has become too secretive for his own good. Some of the IRGC members who work there seem to have forgotten where their loyalty lies. I believe you know one of them. A Lt. Col. Pakvar.”

  Chase and Waleed looked at each other again, and then back at Gorji.

  Gorji folded his arms. “Iran wants Jinshan’s Abu Musa operation shut down. But we want the bitcoin-backed currency adoption to continue, without any illegal value manipulation. Which places us in a precarious position. How do we regain control of the Abu Musa facility without angering Jinshan, who has so much influence over the Dubai Financial Summit decisions?”

  Chase said, “You want us to shut down the Abu Musa operation?”

  “Any illegitimate parts of it, yes.”

  “How do you propose we do that?”

  “I believe that there is someone who can help us. While inspecting the Abu Musa facilities, I met with a foreigner who was working there. Jinshan’s bitcoin expert, I was told. From what I could tell during my limited exposure to him, Jinshan has essentially imprisoned this man on Abu Musa. I met with him years ago, before Pakvar got involved and security was tightened. I believe that this man would be open to defecting to America. If we can make that happen, he could help us ensure that the bitcoin-backed currency is free of malicious code. But I need his extraction to be an American operation. Otherwise Iran could suffer the wrath of Jinshan’s anger. Can you help?”

  Chase said, “I’ll have to take this up my chain of command. But I think this would be mutually beneficial. Would you be able to get me access to this man? This expert?”

  “I believe so. I have contacts on Abu Musa who are still loyal to me. I think that they could help me get him away long enough for you to extract him.”

  Waleed said, “So who is the expert?”

  Gorji smiled. “Isn’t it obvious? It is the man that I was searching for all along. The expert on Abu Musa is Nakamoto Satoshi.”

  *****

  They spoke for a few minutes more, hammering out details of their next communication. Waleed would stay in touch with Gorji through their normal channels. Waleed would receive a message indicating where and when Satoshi would be available. The rest was up to Chase and his team.

  Chase said, “What about the list of American names? When can we see that, and how does that fit in to this?”

  Gorji said, “I came across it during my most recent inspection of the Abu Musa facilities—a few months ago. A young man who was working with Pakvar mistook me for someone who worked on Abu Musa on a regular basis. An Indian boy in his twenties. He’s actually an American citizen. Natesh, I believe his name was. I did not learn his last name. I don’t believe he was supposed to speak of the list with me. I took a picture when he was not paying attention.”

  Chase shook his head. “That’s how these things happen. Tiny mistakes.”

  Gorji said, “I will provide you with the list of American names once Satoshi’s extraction is complete. That is the deal that I am authorized to make.” He looked at both men. “I’m sorry that I cannot give it to you now. I serve many masters, you must understand.”

  Waleed said, “We understand. We will make this right. Inshallah.”

  They shook hands and walked out of the humidor room and toward the front of the store. Chase could see the blue light of the aquarium on the other side of the cigar shop’s glass windows.

  They walked out of the cigar shop and into the mall. Then Chase’s world slowed down.

  Chase had been in combat in Iraq and Afghanistan when he was with the SEALs. It was very different in those two theaters. In Afghanistan, battles in the mountains could be slow and deliberate. Firefights could take days or weeks. In the streets of Iraq, combat was much faster. It could be over in a matter of seconds. But in both settings, it was crucial to maintain good situational awareness, understand the terrain, and know the capabilities of one’s opponent. Chase had been trained in observing the people and things around him until it became instinct to know when a firefight was about to erupt. Right now, his instincts raised the hair on the back of his neck.

  Walking out into the blue light of the aquarium, Chase saw several men that didn’t fit the tourist profile. The first was a hulking, dark-featured man that towered over everyone around him. Pakvar.

  He stood in the middle of a crowd, glaring at Chase and his group. He held something under his jacket. A lightning-quick scan revealed at least two more men that were dressed like him and staring Chase’s way. Both had their hands hidden behind clothing as well.

  “Stop,” Chase called to Waleed and Gorji.

  They stood in the entrance of the store,
swarms of people moving all around them. Chase felt under his sport coat to where his Sig lay in its shoulder holster. He unbuckled it and flipped off the safety, keeping his hand on the grip and his eyes on Pakvar.

  Pakvar yelled something in Persian. His voice was loud and he spat as he spoke.

  Gorji said, “I must go. He said I am to go.”

  Chase said, “What? Waleed, what did he say?”

  “He told Gorji to leave, that he wouldn’t hurt him.”

  Chase wasn’t sure what to do about Gorji. Hell. “Go, get out of here.”

  After Pakvar yelled, a clearing formed around him as people realized that something wasn’t right. One of Pakvar’s men held Gorji’s assistant by the collar. He threw him into the glass wall of the aquarium. Pakvar yelled something at Gorji and then looked at his man.

  Chase’s grip tightened on his weapon. There were too many variables. Three of them and one of him. They weren’t firing yet, which meant that something was restraining them. Chase’s CIA training had taught him to look for options and minimize the possibility of civilian casualties. He couldn’t fire his gun here unless he absolutely had to.

  Gorji stopped and turned when Pakvar called his name. Pakvar took his weapon out. A thick, boxy weapon with a long, straight magazine—it looked similar to a MAC-10. He fired a spray of bullets at Gorji’s assistant. A two-foot flame shot out from the weapon and Gorji’s assistant’s white shirt filled with dark red holes.

  The aquarium wall behind him began cracking and tiny streams of water spurted out. Gorji screamed and started to walk toward Pakvar, then stopped and thought better of it. He cursed Pakvar, turned and ran out of the mall.

  Screams from the crowd. Hysteria. Tourists running. Mothers guarding their children, their heads still turned and watching Pakvar. Even the mall security guards ran.

  A moment later, Waleed and Chase were left alone in the mall’s wide-open floor space. The sounds of water shooting out from tiny holes and hitting the tile floor echoed through the room. Pakvar and his men were spread out about thirty feet away, Pakvar at Chase’s eleven o’clock, the other man at his two o’clock position. The third man was behind them.