Why the Rise of a Bitcoin Standard Could Deter Warfare

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Alex Gladstein, the CSO of the Human Rights Foundation, says nation states would have less incentive to start wars if Bitcoin were adopted as a global reserve currency.

According to Gladstein, the US was able to sustain its “eternal wars” in Iraq and Afghanistan largely through foreign capital. This was made possible primarily by the US Federal Reserve’s monetary policy, which is keeping interest rates relatively low through quantitative easing.

“We literally print money, we sell bonds on the open market for a promise to pay in the future, and we use the proceeds from the bond sales to pay for these wars,” Gladstein explained in a recent Cointelegraph interview.

Unlike fiat currencies, the total supply of bitcoin is immutable. This means that interest rates on borrowed capital would be much higher if nations adopted it as their main reserve. According to Gladstein, this would make unpopular wars more difficult for governments to endure.

“These eternal wars will likely be excised or reduced in a bitcoin standard,” Gladstein said.

According to Gladstein, the Russian-Ukrainian conflict could trigger the decline of the US dollar as the dominant reserve currency. As he pointed out, nation states are trying to reduce their dependence on the greenback after the US froze Russia’s dollar-denominated reserve in response to its attack on Ukraine.

“It’s a rethink where governments say, ‘Well, maybe I don’t want to put all my eggs in one basket. Maybe I don’t want the US government to be able to freeze all my stuff,” Gladstein said.

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https://cointelegraph.com/news/why-the-rise-of-a-bitcoin-standard-could-deter-war-making Why the Rise of a Bitcoin Standard Could Deter Warfare

Fry Electronics Team

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