According to author Adam Livingston, Bitcoin (BTC), with its fixed and limited supply, could play a crucial role in preventing armed conflicts by stopping governments from funding wars through unlimited money creation.
Livingston cites the 20th century as an example, explaining how the growing power of central banks and the abandonment of the gold standard during the two World Wars facilitated the financing of conflicts that citizens would never have accepted through taxation. But, according to him, Bitcoin is the remedy for these conflicts.
“Monetary power equals political power. When a government can create money out of thin air, it can exercise violence at a level that citizens would never tolerate if the bill were presented to them in the form of taxes,” he explains.
The author also references earlier periods when the use of paper money enabled wars, eventually leading to the collapse of its value. He specifically mentions the fall of paper currency under the Song dynasty in 13th century China and the hyperinflation of French assignats in the 18th century.
According to Livingston, the US dollar illustrates how far devaluation can go, having lost more than 90% of its purchasing power since 1913 due to inflation.
Advocates of “sound money” see Bitcoin as an opportunity to separate money from the state, just as the printing press once broke the power of central authorities. They believe that Bitcoin can disrupt the financial foundations of wars.
Economist Saifedean Ammous explains in his book “The Bitcoin Standard” how gold and even paper money have failed. Gold led to centralization, while paper money continuously loses value due to money creation. Each new monetary issuance by a central bank reduces the future purchasing power of savers.
This has profound consequences for society. When money loses its value, people save less and plan less for the future. In a world with sound money like Bitcoin, the opposite occurs: more innovation, social cohesion, and long-term vision.
According to Bitcoin advocates, a global transition to a Bitcoin standard could not only fight inflation, but also promote technological and cultural progress. By depriving governments of the ability to secretly finance wars, Bitcoin could, they argue, contribute to a more peaceful and prosperous world.
On the same topic:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
