Why the rise of a Bitcoin standard could deter war-making

Alex Gladstein, chief strategy officer at Human Rights Foundation, stated that Bitcoin would become a global reserve currency and nation-states would feel less pressure to start wars.

Gladstein claims that the United States was able, largely through borrowing capital, to continue its “forever wars”, in Iraq and Afghanistan. This was possible due to the Federal Reserve’s monetary policies, which have kept interest rates low through quantitative ease.

“We literally print money. Gladstein explained that we sell bonds on the open market to guarantee future payments and that the income from these bond sales is used to finance wars.

Bitcoin’s total supply, unlike fiat currency is indestructible. This means that, if Bitcoin were adopted as the main reserve currency of nations, interest rates for borrowed capital would be much greater. Gladstein said that this would make it more difficult for governments to maintain unpopular wars.

Gladstein stated that “These forever wars will probably get cut out or reduced by a Bitcoin standard.”

Gladstein believes that the Russia-Ukrainian crisis could lead to the U.S. dollar losing its dominant status as a reserve currency. He pointed out that nation-states seek to decrease their dependence on the greenback following the United States’ decision to freeze Russia’s dollar denominated reserve as a response to the attack on Ukraine.

It is forcing governments to rethink their policies. Gladstein said that maybe she doesn’t want the U.S. government able to freeze her stuff.

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