[throwaway248329]

Governments would try to borrow more, but would there be enough willing lenders?

The endgame is forcing governments to be more fiscally conservative and generally less bloated.

[lottin]

Different people have different preferences with regards to the level of government spending. In general, the actual level of spending will be some sort of average of society's preferences. You, as an individual, will have a hard time imposing your individual preferences about government spending on the rest of society, and "crypto" is not gonna help you achieve that goal in any way shape or form. That doesn't mean to say government spending is unconstrained. Of course, it's constrained, by the government's ability to tax and to borrow, but generally not by its ability to print money. If governments were to lose their ability to tax, we would end up with a bunch failed states, which is a considerably worse situation than having "bloated" governments. And their ability to borrow depends on their creditworthiness. To me nothing suggests that crypto-currencies can have any impact in any of this, to be honest.