I didn't quite get that, what has war in Europe to do with free cities?
If balkanization/fragmentation occurs to nation states I see the possibility of free cities emerging as quite natural. And as Bitcoin is a tool that reduces the size of the state I think it's a likely outcome. Long term of course.
Imagine Russians who got rejected when fleeing to other countries. Wouldn't they go in free city where they could continue live and work? It would mean an opportunity for free cities to out-compete national states while providing valuable services.
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