Let's entertain this idea. For the intellectual challenge it offers. Let's put aside ideologies. Let's also assume a functioning socialist society where the main idea is to redistribute wealth from the rich to the less fortunate without corruption, deficit or borrowing from future generations. These are the assumptions. I leave aside if any such country exists or is possible.

On a Bitcoin standard, the government would need to be able to levy taxes to achieve this. Bitcoin, by design, makes it harder to track this. But already now, several businesses in the fiat world that accept Bitcoin include their Bitcoin transactions in their end-of-year reports. But a government would probably not want to trust people's good-will to report their Bitcoin transactions. So, I imagine, KYC would become the norm for businesses that want to operate legally, within the rule of law.

In a sense, Bitcoin might even make it easier than harder for governments to track people's earnings and spending. Currently, in Korea, lots of businesses let you pay in cash and give you a discount. This allows them to pay less taxes as cash transactions are less traceable. On a Bitcoin standard, without additional privacy tools, the public ledger would let the government track how much money a business is making by checking their (KYC'd) addresses.

Once taxes are levied, they will be used in the same way taxes are used currently in the hypothetical society from our assumptions. Money gets redistributed by funding healthcare, schools, infrastructure, etc.

In an ideal society, all of the government addresses will also be publicly known. Tools will exist for plebs to track the government spending. No backdoor deals. No corruption.

On a Bitcoin standard, without inflation, each spending will be scrutinized by society. Money will only be spent on things that matter. Pharmaceutical companies won't be able to fuck over private healthcare companies by charging them 10x the price compared to socialist countries where governments have leverage to obtain the best deals as a country.

On a Bitcoin standard, consumption won't be incentivized. People won't need to slave away for a lower and lower pay. They will improve their standard of living. Handouts will be increasingly less required as the income gap will be reduced. Haves will remain haves. Have-nots will gradually become haves. Haves won't be able to leverage their assets to borrow against an inflationary currency anymore, hence the richer will not become ever more rich. Taxes will be used for the betterment of all.

That's for some random thoughts under the assumptions I laid out. Of course, humans are humans. Many successful Bitcoin companies have already shown themselves to be just reinventions of the past fiat companies, with the same incentives to take advantage of others for their own interests. Hence, such ideal socialist societies are unlikely to exist uniformly over the globe, even on a Bitcoin standard. Far from being ideal socialist countries, yet slightly better than the average socialist country, European socialism has benefited from first-mover advantage, years of colonial exploitation, IMF economical abuse of third-world countries, etc.

A perfect Bitcoin standard is unlikely to ever exist. But I'll be happy if it provides just an incremental improvement over the current fiat world. Socialism, paradoxically, has a lot to benefit from such paradigm shift. So does libertarianism. I do not believe either system to be perfect and a combination of both will be required to get the best of both worlds and oppose the crappiness of human nature.

Don't read too much in this rant. I don't have time to structure my thoughts more.