Bitcoin (BTC), a decentralized and supply-limited currency, can potentially diminish warfare by stopping governments from funding wars through inflation—the hidden tax on citizens—according to writer Adam Livingston.
Livingston highlighted the World Wars of the 20th century as key examples, noting how the emergence of central banking and the decline of the gold standard lead to fiat money that enables perpetual conflicts, which the public would likely oppose if they were aware of the associated direct taxation.
He also referenced the collapse of paper currency during the Song dynasty in 13th-century China and the hyperinflation of Assignats in 18th-century France, illustrating how governments have historically financed wars beyond their capacity and devalued their currencies. Livingston stated:
“Monetary power is political power. When a government can conjure currency with a few keystrokes, it acquires the means to project violence far beyond what citizens would ever approve of if the bill arrived as a direct tax. In other words, fiat money is the silent partner of every modern war.”
Proponents of sound money have long emphasized Bitcoin’s potential to sever the tie between money and the state, thereby altering humanity’s course, much like the printing press revolutionized civilization and weakened centralized power.
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Fix the money, fix the world
Supporters of Bitcoin contend that sound money is vital for human prosperity, arguing that a shift to a Bitcoin standard can foster technological advancement, social unity, creativity, and personal freedom.
Earlier forms of currency, such as gold and paper, are fundamentally flawed; the former encourages monetary centralization, while the latter lacks value retention owing to unchecked printing, according to Saifedean Ammous, author of “The Bitcoin Standard.”
Specifically, paper currencies erode value over time as issuers create more to fund government programs, as Ammous explains.
This depreciation has cascading effects on society, influencing aspects ranging from family dynamics to individual future planning.
A community reliant on poor stores of value is likely to “discount” the future; conversely, a society with sound money will prioritize saving for what’s ahead, innovate groundbreaking technologies, and create lasting civilizational wealth, Ammous remarked.
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