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To support cops and prisons, government will need to pay in money that they have to seize in the first place. Currently governments do not have any money at all
by oleganza 13y ago
To support cops and prisons, government will need to pay in money that they have to seize in the first place. Currently governments do not have any money at all, they have to print it every day to pay their bills. When economy switches to bitcoin, cops will switch occupation well before government finds efficient way to collect bitcoins to pay them. Simply because private sector will be much wealthier by that time.
- rainsford 13y agoNo economy is going to switch to Bitcoin completely overnight (assuming such a switch happens at all), there is plenty of time to figure out how to collect taxes on Bitcoin income before the government needs those taxes to function.
- pessimizer 13y ago>To support cops and prisons, government will need to pay in money that they have to seize in the first place. Why? A government could declare Beanie Babies the dominant currency if they wanted. All they have to do is say that you have to pay your taxes in Beanie Babies, and that all of their court judgments are only settleable in Beanie Babies. You will be rushing to buy treasuries denominated in Beanie Babies and paying for them in bitcoin.