pull down to refresh
202 sats \ 11 replies \ @optimism 7h \ on: What will governments look like when the world is on a Bitcoin standard? AskSN
I have a counter question for you: what incentive do (major) governments have to adapt Bitcoin as their currency?
Asking because I'm still stuck on that and it's kind of essential, before I can even begin to hypothesize what the scenario would be if all of them would already have adapted.
The highway is the world economy, global trade, and a security zone on the Bitcoin standard.
The house is a rogue state that isolates itself from all those things, like North Korea but without Chinese bailouts and humanitarian relief.
It's not whether there's an incentive to change, but whether they can tolerate or even survive the consequences of resistance.
reply
reply
Still the wrong framing, it's not really voluntary anymore than breathing is.
Fiat does not live forever, never has because it can't by its own nature, it's a game of attrition.
It's more like once one domino falls it takes down the rest.
Keep in mind, the US national security apparatus created Bitcoin because they're well aware the dollar has an expiration date. The US has already adopted it, dollar stablecoins that bypass the SWIFT apparatus to drink other currencies milkshake are the equivalent to it hitting the second domino.
reply
Keep in mind, the US national security apparatus created Bitcoin because they're well aware the dollar has an expiration date
Don't take this the wrong way...
But why the **** do you think the national security state created Bitcoin???
The government hates the idea of Bitcoin being a global MoE. They want dollars to be the global standard forever it's what they say every day.
If Bitcoin became the standard (which would take a really long time) interest rates on bonds would skyrocket, debt servicing goes through the roof, and the debt (36 trillion) becomes that much more difficult to repay.
The US has already adopted it, dollar stablecoins that bypass the SWIFT apparatus to drink other currencies milkshake
Doesn't the Trump administration want to devalue the dollar??
reply
why the **** do you think the national security state created Bitcoin???
I already explained, the dollar is baggage, not an asset. If we know fiat has an expiration date, [they] knew it long before us.... they're probably reading this now having a laugh. No one alive today implemented the fiat order, operators however are standing by.
Also, the purpose of a thing is what it does, and what Bitcoin does is give the US an off-ramp from the Triffin Dilemma and the inevitable calamity that would result from the debt-based monetary ponzi spiral.
Lastly, since the dumbest people in Bitcoin worship at statues of some anonymous lone-wolf protagonist in a fairytale, in an era of absolute signals intelligence that assures such a thing is impossible, and following decades where the NSA papers and Washington think tanks discussed cryptocurrency scenarios, i'm inclined to take the opposing view.
The government hates the idea of Bitcoin being a global MoE.
Don't take this the wrong way... but that's ducking regarded for a few reasons...
- There is no government monolith, there is a battlefield where various factions fight for leverage over institutions. Globalist banks are an insurgency to nationalists, thus COIN is COunter INsurgency.
want dollars to be the global standard
-
Among fiats, which it is and will be, stablecoins are part of it. All fiats collapse to the dollar as stables drink their milkshake, until its only Bitcoin and the dollar. Global trade in dollars is the worst thing that's ever happened to the US, because it gets exploited through foreign fiats.
-
Satoshi coins are NSA coins, they have at least 20% of the supply off-book.
-
Bitcoin's ledger is more surveilable for state-scale transfers than legacy finance with corrupt and opaque internal bank ledgers and shell companies all over the globe.
interest rates on bonds would skyrocket, debt servicing goes through the roof
Bitcoin exists to soak up the liquidity when that is debt monetized through stables, see Tether, one of the largest buyers of treasuries keeping yield out of the market by storing it in Bitcoin. Bitcoin is already being used to disperse the inflationary effects on real world prices, such that it doesn't directly go into the stock and housing markets thereby destroying price signals and collapsing the currency.
Doesn't the Trump administration want to devalue the dollar??
-
Bessent literally says "Strong dollar policy"
-
Even if so transiently for trade-deficit purposes, that's still only compared to other fiats... the dollar is and will remain the least bad fiat, and quite likely, the final fiat.
reply
You are crazy
Whatever you are smoking I want some no offence
reply
reply
I'd guess ... They have no such incentive until a dominant world power does. And no pre-bitcoin dominant world power would adapt to bitcoin so it would have to be a world power that emerges after, perhaps only as a result of, adapting to bitcoin. At that point it's the will of the leader and if we are mostly self-custodying bitcoin, and bitcoin does all it needs to while maintaining self-custody, I think that's pretty stable.
reply
I think it's individuals, investors, and to an extent companies and businesses that will force this change. Not governments necessarily.
reply
The incentive is that the cost of their debt increases if they don't have sovereign assets. As they sell off their capital infrastructure and their tax base diminishes because they are squeezing the economy to pay debt interest payments people will move out of real estate and equities into assets that they can't tax, resulting in a large subset of the population playing kingmaker in elections, like the greens in Europe, or the ultra orthodox in Israel, who then push for a favourable environment for bitcoin. Other countries will have kingmakers from the dispossessed, whose assets and job security and social status are plummeting, but who resent Bitcoiners as "hoarders", and from those countries Bitcoiners (and the wealthy in general) will flee, taking their capital to favourable environments (Switzerland, Norway, Portugal, any country that offers them tax sanctuary and freedom of movement).
reply
what incentive do (major) governments have to adapt Bitcoin as their currency
Related question would be "What incentive do (major) governments have to obey the democratic decisions?".
Assuming that most individuals chose bitcoin, the answer to both is "Because that's what individuals want, and if you go against their choice, you are out."
reply