Quote from: adamstgBit on September 07, 2012, 02:12:47 AM

Quote from: Melbustus on September 06, 2012, 08:10:13 PM

Quote from: eroxors on September 06, 2012, 06:51:40 PM

...Massive government spending is required to fund war and bitcoin couldn't facilitate that.

If bitcoin were to ever be a core currency, why wouldn't governments use it like they used Gold for centuries? Issue your own notes backed by bitcoin, offer a redemption option to generate confidence, but print up to 10 times more in notes than you have in bitcoin reserve, and hope there's no run. That *does* work for a while, and can certainly work to finance wars. Eventually it fails, but memories are short...each generation of politicians seems to have to learn the same lessons for themselves via first-hand experience.

If bitcoin were to ever be a core currency,
no one would accept anything other then bitcoin.

False. Govs would still require tax payment in their own currency, there'd still be legal tender laws, etc. Bitcoin as the backing/reserve-currency absolutely makes the situation better than now, but as I noted, govs still printed too much money when gold backed everything...