Will definitely force the government to be less wasteful if they can't just print to fund bullshit, which has a secondary effect of the economy itself getting more efficient as it doesn't compete with a large government and monopoly money buying up talent, wares, and regulation enforcement.

Income and sales taxes probably get pretty hard to enforce too, inducing yet more efficiency at the government level, and liberating the larger economy further.

That leaves it funding itself through property taxes, service fees, customs duties... things where it actually has to do stuff in the physical realm, that aligns the incentives pretty well.

Now, international trade is I think the most under-discussed thing.

So much of what the US government does is due to it's bondage of the dollar being the world reserve currency. Trade is shaped by fiat exchange rates propping up governments... and security zones that reflect those monetary zones. That's all geopolitics is at this stage, maintaining (or exploiting) the fiat order governments run on.

We could for the first time in history have actually free world trade because Bitcoin creates a single monetary zone.

During gold's era, transportation wasn't comparable to today both for the money itself and products traded with it. It's never been free by comparison to what's possible on a Bitcoin standard. That alone is enough to change governments all over the world for the better.