“If they can print money out of thin air, why do they still make us pay taxes?”

I’ve heard this question asked a lot, but only just now appreciated the answer

To create artificial demand for dollars

Say tomorrow everyone began using bitcoin for everything. You got paid in Bitcoin, you paid for everything in Bitcoin.

You would owe payroll taxes and sales tax in dollars

What would you have to do to get those dollars? Sell Bitcoin for dollars

And of course in the process owe capital gains, which creates more dollar demand

It is critical that dollar creation is backed by debt and exchangeable for oil, but the artificial demand created by taxation is critical for widespread use

It’s not that the idiot MMTers are wrong about how government fiat exists as money, they are just convinced that’s the only way

When the government begins accepting bitcoin for taxes is hyperbitcoinization