Topic: What do you think would happen if bitcoin replaced a countries currency? - page 2. (Read 1514 times)

"What if the state would not be able anymore to pay for its citizens needs?"

The state doesn't pay for anyone, because it makes no money.  Since the state gets all its cash (hypothetically, without referring to secret taxation or bonds) from people, what you're asking is, "What if we can't force people to pay for other people?"  My answer is, "Finally we're making some progress."

"What if this led to a system where the old and the sick would not have any support by the state?"

People would have to learn how to take care of themselves and another.  People who cannot find anyone to take care of them will get worse and likely die; if one doesn't want this to happen, one should take care of people, instead of worrying about whether or not we can force other people to pay for other people.  Fair enough, yes?

Anyway, what would happen when a nation could no longer have its own currency, I theorize, that nation would have to resort to a flat rate tax and give you a bill at the end of the year of everything you owe.  The state cannot sell bonds (i.e. your children's futures) without its own currency, nor can it inflate its own currency to death (that secret tax), thus forcing the state to remain small and focused primarily on serving its people, as opposed to empire building, i.e. war, fancy construction and turning independent people into dependents through welfare.

The power taken from the people through fiat currencies would then return to the people.  I can't tell you exactly what will happen, but I find this a step in the right direction.  There will likely be a short-term period of intense pain as the wealth is redistributed, but remember what I said: "As opposed to empire building."  If Bitcoin, or other currencies that cannot be printed to death, were the primary usage of the planet's economy, empires could no longer form.  War would be far more costly, impossible to sustain for long periods of time.  People would be far more independent and freedom-oriented; they would no longer have any need to wish for the state to be their nanny.  The general wealth of each person would be far superior.

It's often said bitcoin attacks the states monopoly on printing money.
Assuming there would be a point in the future, where in a country bitcoin got more important than the regular currency that country used. So the regular currency would suffer immense inflation and all the people decided to only accept bitcoin, thus taking the state the ability to print new money. How do you think this would affect that states social systems. What if the state would not be able anymore to pay for its citizens needs? What if this led to a system where the old and the sick would not have any support by the state?