The government can (and typically does) force you to pay those taxes in dollars, not Bitcoin.

El Salvador broke that mold.

Money cannot be infinite unless resources are infinite (and I think we are still a long way from that), otherwise the value will go towards 0 measured in its ability to be traded for goods and services.

It can be if one resource is infinite. As noted, every single USD In the world could be used to purchase digital downloads of songs, tens of trillions of them, use up every USD and then start with the EURO. We could go through the entire momentary system and never run out of digital downloads as long as the bandwidth was there.

Of course, this is taking to the extreme but it shows how all money could be focused in one area to obliterate the existing supply.

Finally, the growth rate of processing power is far exceeding the printing of the global money supply. This is eradicating more of what we spend money on in the physical form. Consider how much money was spent in the early 1980s on pictures, between the film, development, and mailing. Now, we take 3 trillion pictures a year, at near zero cost per picture.

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