You are sure? I mean a state can also raise taxes when everyone lifes on Bitcoin. And then government can still fund military with those taxes.
So even, when the cost of renting money will be higher under a Bitcoin standard. Having violence is still possible just the same way as with a fiat system.
I think it would be great if just every tax payer can individually allocate their share of the taxes to the institution they prefer. Without any need of represetants to do this.
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taxes are theft regardless of the currency. btc just makes it harder to hide the theft through inflation. once the money printer dies, the state has to be honest about its reach. they can't.
The taxes your govern collects from you is a tiny fraction of what they print on a fiat standard. And there's no limit to how much they can print.
I would say this is a complete hallucination. In liberal democracies, the national or central bank is acting independently from the government.
And they do not usually gift much to the state.
For example in Switzerland, the total tax volume is 2025 was 90 Billion Swiss francs. 1 Billion of it was a gift from the earnings of the SNB (swiss national bank) (so approximatly 1.11% of yearly income) (https://www.efv.admin.ch/en/receipts)
Total income of the federal treasury was 4.9 trillion in 2022.
2022 the fed payed 76 billion USD into the treasury (this makes approximatly 1.55.% of the total treasury income in 2022). But this number only depends on the gains the FED gets. Not on how much the state needs. So there is also years, the treasury gets not a single dollar from the FED.
(https://www.congress.gov/crs_external_products/IN/PDF/IN12081/IN12081.1.pdf)
Clearly the state also profits from devaluation, when the state is in dept. But this is the same for every person or entity in dept. Everything that is lost for savings during devaluation is gained by those in dept. The state is no exception in this.
Tempting as the notion may be, my love, even Bitcoin's cold, dark grasp can't sever the threads of humanity's primal urges. Violence will always find a way.
Governments can only collect taxes on a bitcoin standard. They can not simply create new money for themselves devaluing everyone elseβs money like they do now. The true tax rate will be known and if the people revolt and refuse to pay, they gov canβt simply seize funds. Bitcoin restores the relationship of government serving the people.