Bitcoin (BTC), recognized as supply-capped and decentralized, may play a significant role in mitigating the impact of warfare by curtailing the reliance on currency printing that governments utilize to fund conflicts. This assertion comes from author Adam Livingston, who highlights historical precedents to support his claims.
Livingston points to the World Wars in the 20th century, which marked a period of centralized banking and the decline of the gold standard. He argues that this shift allowed for the proliferation of fiat money, which facilitated wars that the public might have opposed had governments imposed transparent wartime taxes. He draws parallels with historical financial crises, such as the collapse of paper currency during the Song dynasty in 13th-century China and the hyperinflation of Assignats in 18th-century France. Both examples illustrate how governments, in their pursuit of war, debased their currencies and exceeded their fiscal capabilities.
“Monetary power is political power,” Livingston states, emphasizing that when governments can create currency at will, they gain the means to engage in violent actions far beyond the scope that citizens would typically approve of. He argues that fiat money effectively serves as a concealed partner in modern warfare.
Since 1913, the US dollar has lost over 90% of its value, primarily due to inflation—a phenomenon that many suggest can be curtailed through the adoption of sound money principles like those espoused by proponents of Bitcoin. Advocates of Bitcoin argue that a separation of money from state control can dramatically alter humanity’s trajectory, similar to how foundational technologies like the printing press reshaped civilization and diminished centralized power structures.
The notion that “fixing the money can fix the world” is a recurring theme among Bitcoin enthusiasts. Proponents argue that sound money is crucial for human development, and transitioning to a Bitcoin standard can foster technological innovation, social unity, artistic expression, and freedom. Previous monetary systems, including gold and paper currencies, are criticized for their inherent flaws; gold has often led to monetary centralization, while paper currencies are seen as diminishing in value due to continuous government printing.
Saifedean Ammous, author of “The Bitcoin Standard,” highlights the detrimental effects of paper currency on society, noting that it gradually erodes future value for holders every time additional currency is printed to finance government activities. This depreciation has cascading effects on various aspects of life, from family dynamics to future planning.
A society tethered to unreliable stores of value tends to “discount” the future, while one anchored in sound money places a premium on saving and innovation, driving forward monumental changes and building capital for civilization. These perspectives contribute to ongoing discussions about financial sovereignty and the potential for Bitcoin to reshape societal norms and governmental practices.
