If a US company is paid in euros or gold it still needs to pay taxes in dollars. Further, property taxes for example are independent of your income stream. As owning land creates a liability, but land in no way creates money from thin air.
People do transactions in USD specifically because they need to pay taxes in USD not the other way around. Thus, these transactions are simply a multiplayer on top of the Tax demand.
>"If a US company is paid in euros or gold it still needs to pay taxes in dollars"
And similarly if a European company is paid in dollars they still need to pay taxes in Euros. Why is this relevant?
>"As owning land creates a liability, but land in no way creates money from thin air."
Owning land creates money out of thin air by appreciating in value. People have gotten fantastically wealthy by doing nothing except letting time pass.
>"People do transactions in USD specifically because they need to pay taxes in USD not the other way around."
This is not unique to the US. Where else can you pay local taxes in a foreign currency?
Sure, and Euros are also backed by the EU economy. The point is 'national' currency's are actually backed up by enforced demand unlike say Ethereum.
People talk about hyper inflation as if it can actually happen without the backing government printing money. The reality is taxes limit inflation as long as the currency is not printed endlessly and the government does not over spend you can't sustain hyperinflation.
>"Sure, and Euros are also backed by the EU economy. The point is 'national' currency's are actually backed up by enforced demand unlike say Ethereum"
I agree with this but that's also the main differentiator is that the "legal tender" of a country backed up by enforced demand while Bitcoin and backed up purely by supply and demand. I think I misunderstood your point with regards to the tax examples.
However I don't agree that inflation can not be controlled exclusively through taxes. That is but one component the much bigger lever being the monetary policy of the central bank.
I am more talking about the long term. Total value of all currency is going to be +/- some % * k of GDP so over say 100 years you get minimal average inflation or deflation and the average keeps dropping as you increase to say 200 years etc.
But, even if it's value is stable in the long term that's arguably less important than month to month and year to year stability because you need to make loan payments today or buy food today etc.
