17 votes

How can government "seize" bitcoins?

It is not necessarily true that no amount of force or authority can cause or prevent any transfer of Bitcoin. The protocol does not allow arbitrary seizures or blocking, but there are still human ...
Ava Chow's user avatar
  • 70.4k
12 votes

How can government "seize" bitcoins?

A lot of bitcoins reside in a trading platforms or online wallets. These bitcoins are (in the particular bitcoin sense) controlled by the platform. The government (provided the platform/wallet is in a ...
fraxinus's user avatar
  • 301
7 votes

How can government "seize" bitcoins?

Other answers have covered how/if this is possible in theory, but you may be interested in how it actually happened in the specific case you mentioned. The press release links to a PDF of the ...
Robert's user avatar
  • 171
7 votes

Why do people claim that governments cannot confiscate Bitcoins?

While it is true that Bitcoin can still be physically taken away from you, it is still much harder to do that than it is for a government to confiscate your fiat stored in a bank account (as most fiat ...
Ava Chow's user avatar
  • 70.4k
4 votes
Accepted

Who Really Controls Bitcoin?

As we've answered earlier today the description of what happens when 90% of the hashpower is lost is approximately accurate, although somewhat exaggerated: "A 90% loss will create 2 hour block ...
Murch's user avatar
  • 75.3k
4 votes
Accepted

If Bitcoin is not controlled by the state, how come in some countries it is illegal?

A party can send a hexadecimal string to another party and nobody in the world can prove bitcoin or any form of money was sent. Governments can ban bitcoin usage but the bitcoin protocol is ...
Kang's user avatar
  • 450
4 votes
Accepted

How is the human end of the Bitcoin network secured?

In an ideal world, we would want all programs to be auditable/verifiable(we can verify every execution path to be secure and correct). But that's far from reality, when you download a binary from a ...
sanket1729's user avatar
  • 1,380
4 votes

How can government "seize" bitcoins?

You said yourself: " I.e., short of coercing whoever has the private key to disclose it..." And that's exactly how a government can seize bitcoin, or how an unscrupulous criminal can get ...
gnasher729's user avatar
3 votes

Who Really Controls Bitcoin?

This is a bad article. While it may be true that Bitcoin is difficult to change, it is much easier to shut down. This is true! While full clients will not accept invalid blocks, nothing guarantees ...
Nick ODell's user avatar
  • 29.4k
3 votes

Pump & Dump communities. Are they legal?

Legality depends largely on jurisdiction, and you didn't specify one. In addition, the regulation of cryptocurrencies is constantly in flux, and even in a given jurisdiction it's difficult to say ...
Jestin's user avatar
  • 8,812
2 votes

How can the government tax you using bitcoin

Governments can set up laws and regulations and then set up "departments" to monitor and enforce. Whether it is successful or not is another question. No doubt they will have to skill up and ...
cloudnthings's user avatar
2 votes

Pump & Dump communities. Are they legal?

Therefore, those who managed to buy it early and sell it in time, get profits. Actually, they don't. For three reasons: To execute a pump & dump, you have to keep buying even after the price has ...
David Schwartz's user avatar
2 votes

Could centralisation of miners lead to censorship?

I will try to combine both answers by Hugo Franklin and David Schwartz with my thought process in the hope that this could add value to others. The scenario of geographically centralized Bitcoin ...
MManke's user avatar
  • 212
2 votes

Could centralisation of miners lead to censorship?

Scenario: Miners are centralised within a geographic boundary with significantly cheaper energy and more processing power making competition impractical. The government of this geographic boundary now ...
David Schwartz's user avatar
1 vote

Could the US government print crypto of its own?

Is it possible? Could the US government print crypto of its own? This partly depends on how you and the government run institutions define cryptocurrency. This kind of idea is sometimes referred to ...
RedGrittyBrick's user avatar
1 vote

How can government "seize" bitcoins?

Two possibilities have already been discussed: If the bitcoins are in a wallet on your computer, the government must acquire your private key, e.g. by physically seizing your laptop and forcing you ...
mic_e's user avatar
  • 111
1 vote

How bitcoin gets monetary value

Currencies get value from demand and supply not from governments backing them. Currencies have existed long before government's started stamping them out in their own name. The demand for a currency ...
Abdussamad's user avatar
  • 2,699
1 vote

How would a governmental Bitcoin ban work in practice?

You may be thinking about this the wrong way. Most countries have a ban on cars driving above a speed limit. However this is not enforced by using technical means that prevent cars driving over the ...
RedGrittyBrick's user avatar
1 vote

Can government agencies trace if I mine bitcoin?

If you are going to mine any significant amount, you'll consume a substantial amount of energy, which may be noticed. For instance, if I were to install a single AntMiner S9 at my home, my ...
Nate Eldredge's user avatar
1 vote

Can government agencies trace if I mine bitcoin?

Data linking is the only way there is any question of privacy. When you transact with Bitcoin, the goods or service you order will need to have a delivery address. Also, if you send your BTC to any ...
Willtech's user avatar
  • 3,269
1 vote
Accepted

Can Bitcoin be "shutdown" if energy consumption for mining is heavily regulated?

Those questions have been answered multiple times. The difficulty depends on the mining power. If there is a regulation and 60% of the miners are away, the difficulty would decrease drasticly within ...
hardfork's user avatar
  • 2,117
1 vote

How hard it is to destroy BitCoin system if the government leaders decide to do this?

since the government controls the physical internet They do not (at least in North America or Europe). The internet is a network of communication. An Internet Service Provider (ISP) can be private or ...
arshbot's user avatar
  • 1,778
1 vote

Are decentralized currencies absolutely critical

Even in the case where a centralized body is perfectly benevolent, and always acts in the citizen/user's best interest, the fact remains that mere existence of a position of power is a liability to ...
chytrik's user avatar
  • 18.3k
1 vote
Accepted

Exchange-based vs over-the-counter (OTC)

Exchange-based transactions, ; Exchanges bring together brokers and dealers who buy and sell these objects. These various financial instruments can typically be sold either through the exchange, ...
Zacharin's user avatar
  • 176
1 vote

How is the human end of the Bitcoin network secured?

There is a joke about Thailand's road police: Once Thailand King went to a witch a and asked: "Hey, witch! Help me to eliminate bribes on my land's roads, please. What should I do or how should I ...
3Letters's user avatar
1 vote

If Bitcoin is not controlled by the state, how come in some countries it is illegal?

Well this is a vague question. To answer your query from the county's government context: Any form of payments that surpasses their way of handling the payments will surely attract some potential ...
mannutech's user avatar
  • 109
1 vote

Who Really Controls Bitcoin?

Not exactly the same topic but still relevant and perhaps a touch more philosophical. Bitcoin was suppose to be decentralized. But for miners it is not feasible to really run a solo operation anymore ...
Sarel Esterhuizen's user avatar
1 vote
Accepted

How does the U.S. government view Bitcoin? Is it money?

The U.S. government views Bitcoin as a commodity, kind of like gold. If you buy Bitcoin at one price in dollars, and sell it at a higher price in dollars, you will have a gain (in dollars), that you ...
Tom Au's user avatar
  • 462
1 vote

What would a country adopting Bitcoins as official currency have to reinvent?

There are other practical challenges a country need to face: Before even starting the change, a government must convince people. Old people here in Hungary still insist on using cash, and nobody can ...
Calmarius's user avatar
  • 141

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