[Frogolocalypse]

> We need taxation. We need monetary policy.

Yes to one, no to two. Monetary inflation allows governments to tax you by stealth. They then manipulate the inflation statistics (hedonic regression anyone?) to make it seem that inflation is lower than it is, so that your purchasing power is debased faster than the statistics. That's why house prices have exploded for 40 years, and just about anything you buy costs more by some orders of magnitude than what it should given CPI.

Bitcoin is the reckoning for that system. The government will be forced to accept that people will not hold their token except to pay taxes. When it is not possible to know the worth of someone, which is already painfully obvious for the very wealthy, the only taxable system will be on the use of goods and services in their respective governanace area.

[e3b0c]

> Monetary inflation allows governments to tax you by stealth.

It's even worth since rich people can easily exempt from it by allocating their wealth into inflation-proof assets while working class have to take a full exposure of it.

[dnautics]

moreover monetary inflation absolutely kills poor people and enables rich people to do things like leveraged investments, and drives the middle class into investing in corporations to stay afloat for retirement (essentially a subsidy for the wealthy).

[Frogolocalypse]

I think bitcoin will finally separate the good debt from the bad debt. It is my personal belief ( as in i don't know of any formal theory ) that debt should only be incurred for the use of building a productive asset. In a deflationary currency, this encourages businesses to ensure that productivity increases will have greater returns than savings. Instead, our financial system has encouraged the acquisition of debt for fixed assets. The only thing this has done is bid up the price of those fixed debts with debt, and handed over the money for supporting that system to banks and their owners. In order to stimulate growth in such a system, the only way that you can function is to tax savings. That's what inflation is. What it forces people to do is to invest in increasingly risky assets, because of the loss of their purchasing power. Hence bubble after bubble after bubble. Crisis after crisis after crisis.

Bitcoin will eventually stabilize to an ever appreciating value asset. But what it will allow you to do is save for a house. If you have a business proposal that encourages people to pay you for a good or service, people will invest their savings in it and take on that risk. Banks will instead move back to providing capital to businesses, using savings from people that are willing to invest. Businesses will again focus on productivity increases, because that's how you get access to capital.

I also don't think it is going to be resisted quite as much as people think it will be. People still need to pay their taxes, and that is not going to stop. The main thing it is going to do is prick the bubble of consumer debt, and remove the banking middle-men from that space. That alone is a multi-trillion dollar industry, let alone the annuities that banks own and graft from, from those assets. Removing these people (i.e. banking debt suppliers) from positions of power, by strangling their access to capital, is a justification for bitcoin in its own right. Imagine a world in which banks didn't control governments.

That's the way it is supposed to work i think. It is pure genius.