Home Analysis Would the Bitcoin Standard make war unaffordable?

Would the Bitcoin Standard make war unaffordable?

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“Making War Expensive Again” has been proposed in a recent Bitcoin slogan. Tweet By Adam Ortolf of Upstream Data. He argued that the government’s ability to generate billions of dollars at its disposal for military spending made war “100% free (plus insanely profitable).”

But will the move to hard money Bitcoin really make war impossible? The concept is certainly not new, but it’s an interesting discussion. Back in 2014, Roger Burr said

“Every time you use Bitcoin, you are contributing to undermine the war machine around the world and the power of those who use violence to control others.”

bitcoin vs war

Bitcoin and its supporters have long argued that digital currencies could usher in a new era of healthy money. Unlike traditional fiat currencies, which are prone to inflation and central bank manipulation, Bitcoin has a fixed supply of 21 million coins, ensuring scarcity. In theory, this supply limit could make Bitcoin less susceptible to currency depreciation and encourage governments to act more financially.

What does this have to do with war? Historically, wars have been funded through inflationary mechanisms such as the printing of money. This practice allows governments to fund military operations without immediate economic impact. Instead, the costs are passed on to the public through higher prices and a weaker currency. Adopting Bitcoin or any other hard currency could limit this seemingly endless spending capacity.

Saifedean Ammous in his infamous book The Bitcoin Standard wrote:

“As long as the government prints more money and the money is accepted by its citizens and foreigners, it can continue to finance war.”

It is a plausible assumption that countries could deter large-scale military intervention by limiting government finances. However, faced with the inability to balloon war-related debt, countries may resort to alternative strategies, including diplomacy and other non-combatant means, to resolve conflicts.

In his book Soft War, US Space Command Major Jason Rowley even suggested that the US should stockpile bitcoin because bitcoin mining will be the battlefield of the future.he called bitcoin

“National strategic imperatives must be supported by the United States and adopted as soon as possible, or risk losing our leadership as a global superpower in the 21st century.”

nonviolent revolution

In response to Ortolf, Taiwan delegationAn adviser to the National Digital Assets Commission of El Salvador, he expressed concern about the potential impact of the move to Bitcoin standards. While he agrees that hard money can make war more expensive and less likely, he questions how this transition will happen without ushering in a dystopian future. bottom. Considering El Salvador’s move to adopt Bitcoin, an interesting observation has been widely reported.

Taiwandan said that as countries move toward the Bitcoin standard, countries with the ability to print paper money will overprint to increase their arsenal, ultimately leading to a single rulership ruling global affairs. He suggested it could lead to power and dictatorship.

Ortolf’s counter-argument focused on his belief that the move to hard money was not a voluntary government decision, but rather a change that would occur when the market no longer valued the fiat currency that the government provided. . He said that demanding hard money for goods and services would allow the world to collectively move away from the current financial system.

“The market decides by no longer valuing the paper that the government is willing to pay for, not because the government has to.

The world is opting out of this scam by demanding cash for goods and services. A non-violent revolution. ”

Can Bitcoin Stop the “Eternal War”?

It is important to understand that war is not just an economic issue. Material conflicts are often exacerbated by ideological, religious and nationalist motives that cannot be quickly quelled by economic factors alone. Moreover, a powerful country is unlikely to abandon its lucrative defense industry just because funding becomes difficult. Governments may seek alternative financing methods such as tax increases, borrowing or even mandatory contributions from the private sector.

So while the concept of Bitcoin making war more expensive and less frequent is appealing, the path to achieving this goal is by no means an easy one. A nuanced understanding of the dynamics of global conflict and the potential challenges and risks involved in transitioning to a cryptocurrency-based economy is therefore essential.

After all, Bitcoin’s role in making war expensive again may be a fascinating concept. Still, it can have unintended consequences, such as higher taxes, increased borrowing, and enforcement measures targeting the private sector.

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