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The idea, in Bitcoin standard, is that government projects should be financed with taxes; not by printing money. When money has no cost, it inevitably results i
by Geee 5y ago
The idea, in Bitcoin standard, is that government projects should be financed with taxes; not by printing money. When money has no cost, it inevitably results in loss of responsibility and capital mismanagement. The usual story is that government uses the money printer to enrich themselves, and also funds an army to keep people from overthrowing them.
When government is funded with taxes, there are limits on how much can be spent, and spending follows democratic principles and responsibility. Authoritarian or incompetent governments wouldn't be able to fund themselves, when people refuse to pay taxes to them. This works, because bitcoin can't be inflated and it can't be confiscated.
- notahacker 5y agoExcept of course that when incompetent or authoritarian governments have to borrow or seize money they need to cover up shortfalls, the consequences aren't exactly better... And it's not like crypto removes the notion of wealthy elites capturing the revenue of money printing, it just moves them and their money a long way from the local economy, requires them to spend a lot of money on burning power and removes any incentive for them to spend it on local roads or schools.
- logicalmonster 5y ago> The idea, in Bitcoin standard, is that government projects should be financed with taxes; not by printing money. I do think many Bitcoin enthusiasts might philosophically agree with the general viewpoint that paying for Government projects with taxes is a better alternative than debasing the currency, but I'd think Bitcoin itself is totally agnostic as to what Government needs to exist or how Government should be financed.