There are several inaccuracies here. Let’s start:
money IS a commodity
This is ahistorical. In the context of civilization, money has almost always taken the form of debt. This is more true today than ever.
so if you remove all government with it’s spending, all taxes, and just let people use gold/bitcoin as a currency, economy will still work.
There are no examples of this. Good luck trying to abolish fiat(?).
When you add a cental authority to that society, people start earning less (taxes)
You are extremely confused. First, the central authority is never ‘added’ to the economy. The economy depends on the stare to function and it has always been this way. Second, every functioning society has a government and taxes. Abolishing taxes means abolishing the government. I have no idea what you’re trying to suggest here.
Prices go up (government creates an extra demand for goods which makes them less affordable for everyone else). You can’t just spend forever because you can, it has real consequences — someone always has to pay for it.
Government does not crowd out the private sector unless it purchases goods and services that are nearly fully employed. The purpose of increased government spending during a contraction is to boost aggregate demand. Of course spending has consequences; MMT analyzes these consequences at length. Running out of money is not one of them.
Again, please actually read MMT literature or something beyond and Econ 101 textbook before responding. Your criticisms were virtually incoherent and demonstrate a lack of familiarity with the subject matter.