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If people earned bitcoin and paid taxes in bitcoin the government would still need to exchange those bitcoins for dollars in order to pay its debts.
by OscarCunningham 5y ago
If people earned bitcoin and paid taxes in bitcoin the government would still need to exchange those bitcoins for dollars in order to pay its debts.
- OGWhales 5y agoMy point is that taxes are a key factor in creating demand for dollars. > the government would still need to exchange those bitcoins for dollars in order to pay its debts That is not true. The government does not collect taxes to pay its debt, as it can simply spend its own currency which it creates. Taxes are relevant to spending in that it keeps dollars valuable.
- OscarCunningham 5y ago> The government does not collect taxes to pay its debt, as it can simply spend its own currency which it creates. Not if it wants to hit an inflation target.