A bit of a negative post re: sound money standard:
Hidden taxation through inflation is also an advantage in war.
A country that taxes a lot through printing massive amounts will collect more money than one that only taxes through income. Said country can allocate more to military purposes and win a war against the other country.
The game theory of a world-wide sound-money standard is unstable - once one player abandons it, it incentivizes others to do so as well.
Similar dynamic was the rise of the nation-state itself – it proved stronger than the feudal state due to having larger national armies, and that forced feudal states to turn nation-states too.
-- an excerpt from the 2-minute version of An Honest Account of Fiat Money (2018), originally posted in https://www.2minutebitcoin.org/blog/an-honest-account-of-fiat-money-2018
2minutebitcoin
npub1p6…9ej3v
2023-01-24 20:46:28
Author Public Key
npub1p63d4vekvuql9zltpp4dezzfk2xxfgjsfqyglf4ju4syalekn4csn9ej3vSeen on
wss://relay.noswhere.comPublished at
2023-01-24 20:46:28Event JSON
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"content": "A bit of a negative post re: sound money standard:\n\n\nHidden taxation through inflation is also an advantage in war.\nA country that taxes a lot through printing massive amounts will collect more money than one that only taxes through income. Said country can allocate more to military purposes and win a war against the other country.\n\n\nThe game theory of a world-wide sound-money standard is unstable - once one player abandons it, it incentivizes others to do so as well.\n\n\nSimilar dynamic was the rise of the nation-state itself – it proved stronger than the feudal state due to having larger national armies, and that forced feudal states to turn nation-states too.\n\n\n-- an excerpt from the 2-minute version of An Honest Account of Fiat Money (2018), originally posted in https://www.2minutebitcoin.org/blog/an-honest-account-of-fiat-money-2018\n\n",
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