The most dangerous result of Fiat money is that it reduces the marginal cost of war to zero.
The U.S. doesn’t need to have the money to wage war, they can simply issue debt.
This debt in the form of Bonds, is bought by the public, and if there isn’t enough buyers on the market, the Federal Reserve buys it.
Where does the Federal Reserve get their money, the simply create it, with a stroke of a key.
This debt creation pushes the costs of war to future generations.
Pre 1971, (when the U.S. went off the gold standard) wars had a cost
If the U.S. wanted to wage war, they had to either increase taxes or cut spending.
They haven’t done that in decades. Quite the opposite, they wage wars and cut taxes.
If the U.S. Public had to consent to war and pay for it, no one would agree to it.
This is the danger of fiat money, it allows the state to subvert democracy, push costs to future generations, and wage war without the consent of their own people.
Returning to a gold standard doesn’t work because the reason the gold standard failed to begin with was because gold cannot be used to settle trade at the speed of light (speed of communication)
So you ended up with a bunch of “paper gold” and “I owe yous” on the gold. Eventually, it was abandoned.
Bitcoin is called Digital Gold, because it has the property of scarcity, there will only be 21 million and no one can change that
It also is easily divisible, verifiable, and transportable. All properties that gold didn’t have.
So its a better gold than gold.
Making or mining bitcoin requires a lot of energy. This is the true innovation of Bitcoin. It’s not blockchain.
It’s linking it to real-world energy, so it cannot be manipulated or bought.
If you want to mine bitcoin, you have to pay up in real world energy.
Bitcoin is not some elaborate scam or a get-rich-quick scheme.
It’s a credible threat to the existing monetary system of control.
It’s a trojan horse for freedom technology.
It separates money from the state
Allows individuals across the world to be self-sovereign
It is the most peaceful revolution. A monetary rebellion.
This is how #bitcoin makes war expensive again.