Most likely if bitcoin became THAT pervasive it would mean that fiat money was dead. if fiat money was a thing of the past than governments would have no way to hide the cost of war through money printing. If politicians had no way to hide the cost of war through money printing they would have to get on stage and say "look we need to go to war with dirkadirkastan and so we will be sending every man woman and child a bill for 50,000 dollars to pay for it" Even the most ardent neo-cons may find themselves wearing hemp wrist bands and making peace signs under those conditions.
so that was the long way of saying no the military will never accept payment in bitcoin.
so that was the long way of saying no the military will never accept payment in bitcoin.
It was military spending which killed the gold standard. World War I broke sterling as the world reserve currency. It was the Vietnam War which forced Nixon to close the gold window and take the US completely off the gold standard too. Both countries have been debt-addicted ever since to finance excessive government expenditures including military adventures.
In a Bitcoin-only economy with fiat gone, the military will have to live within the tax-base available to support it. However, this may simply mean a diversion of resources to robot technologies, which are far cheaper per unit firepower than projecting human soldiers thousands of miles away.
http://www.guardian.co.uk/science/2013/may/29/killer-robots-ban-un-warning
