Vika on Nostr: Governments will have to rely on bonds a lot if they want to survive ...

Governments will have to rely on bonds a lot if they want to survive hyperbitcoinization. Bonds and taxes are going to be the two main ways to fund both necessary public goods and also frivolous government spending such as wars.

But taxes are going to get quite harder to levy if the government doesn't know how much money everyone has. So the only remaining viable option is bonds. Except now the government has the potential to trap itself in its own debt the way people get trapped in student loans and other debts in US right now. That would be rather amusing to watch, especially if it happens to US.

Then, some more savage failed states might turn to attempting to enslave people by force. My prediction is that it'll seem to work until it stops working — either there will be no more slaves because everyone runs away or goes into hiding, or because people will die so much the country will empty itself. (I wonder if any countries today are in danger of a similar scenario unfolding ✨ y'know what I mean)