Wars are inherently destructive and can only be funded for prolonged periods of time with mountains of debt. Especially if you can extract taxes backing this debt relatively painlessly. Extracting Bitcoin from individual wallets is no small feat, and Bitcoin-backed (fractionally, of course) notes would not have the same advantage as paper bills over gold coins. Bitcoin is divisible, storable and transferrable well enough to be used as-is.
Fiat currency allows the government to make its citizens pay for its usurious debts, by printing more money. This is not possible with gold or bitcoin.
Not that i agree with the sentiment entirely but i believe OP's and subsequent commenter are saying is that a nations control over currency and wealth distribution gives rise to despotism.
