Sound money forces governments and individuals to embrace fiscal discipline, while currency inflation encourages reckless spending.
Bitcoin (BTC), a supply-capped, decentralized, neutral money, can help reduce warfare by eliminating the currency printing that governments use to finance war through the hidden tax of inflation, according to author Adam Livingston.
Livingston pointed to the World Wars of the 20th century, which saw the rise of central banking and the erosion of the gold standard, as the prime example of how fiat money fuels endless wars that the public would not have supported if a transparent wartime tax had been levied.
He also cited the collapse of the paper currency under the Song dynasty in 13th-century China and the hyperinflation of Assignats in 18th-century France as examples of how governments financed war beyond their means and debased their currencies. Livingston said:
