Topic: Can the government acquire all bitcoins either by seizure or purchase? (Read 436 times)

This is wrong. Had they really wanted to stop Bitcoin, they would first things first shut down all centralized exchanges and cutoff Bitcoin services from the banking system. That alone would kill Bitcoin's viability for people who don't use deepweb services and similar stuff. But governments didn't do this because they don't care that much about Bitcoin at least as long as its just a store of value that can be taxed when it's liquidated.

I doubt that the government can acquire BTCs especially if the person has the private keys on their wallet.

The government definitely cannot access the whole blockchain and steal all the BTCs even if they have the best of the best computer person out there. It is just impossible on how the blockchain was created as the only person that can access their respective BTCs are the people who have the private keys to it.

One thing, however, that the government can do is to restrict the access on local centralized exchange by providing stringent requirements or even freeze the institution itself.

No they can't and that's what give Bitcoin power as a decentralized currency, the government missed their chances of seizing or buying most of the Bitcoin in circulation as of when Bitcoin was newly launched and started making waves for itself. Back then they could have easily gotten as much Bitcoin for a very low price and continue buying more of the mined Bitcoin coming into circulation but they doubted Bitcoin by thinking it won't be much of a threat to them. They didn't believe Bitcoin would come this far and now it's already too late for them to achieve seizing or buying most of the Bitcoin in circulation.  Using the word most because they can't fully have control over all the Bitcoin in circulation. Lets not forget new coins are been mined daily and introduce into the market and even though the government takes over mining, we'll still have independent miners.


A decent amount of money is been traded on decentralized exchange so not everyone uses centralized exchange and if the government through CEX keep up their recent activity of seizing funds on centralized exchange, it'll make others prefer to use DEX instead of CEX. Those exchange seizing customer coins are building a bad reputation among the community as this is a decentralized community that's supposed to be exempted from the regulations of the government. Alot of DEX are becoming more popular and we might just start seeing high volume as more investors pick them over CEX. During the defi hype we saw DEx competing with CEX for volume and we can't repeat similar scenarios again

@Everyone

HmmMAA is a BSV/CSW cult fanatic that loves spreading misinformation about BTC:

Just because you love BSV censorship, it doesn't mean BTC will "comply":

https://twitter.com/BobSummerwill/status/1577714409618931713

If BTC adopts censorship, it's no longer BTC, it will be something else. People will fork it.

You have to understand how bitcoin works. The word "decentralized" means no person, government, or entity can access your coins unless they have the seed phrases. And one won't give away their seed phrase willingly. Will they? Unless the government forces the owner or use any kind of secret mind reading technology, Lol.
 
Another thing, do you know that thousands of thousands of bitcoins are already gone? Due to losing private keys, hardware fails. And these lost bitcoins can't be accessed without any means. About 10–25% of Bitcoin is lost, according to some sources. So even if the government tried to acquire 100% of the supply, they couldn't. None can purchase something which is already lost. Satoshi still has his bitcoins at his old address. Who knows for what mysterious reason he kept it that way?
 
https://www.cryptovantage.com/news/ask-cryptovantage-how-much-bitcoin-has-been-lost-forever/

Is that so? Then why "Zhong" btc asset were seized by the Government when proven that he is the criminal or the one stole 50k btc on silk road. Obviously he stored it on a non custodial wallet and as per watching this video on Youtube about documentation on how they apprehend him seems pretty clear that they can as long as they have proof that you are the cuplrit on such incident cause they knew they can seized anything unless someone is proven guilty. Or does your statement depend on the case is what you mean.

Source: https://youtu.be/3Nq3ye-QCyM?si=j1UsEqOoSpiAJED_

I only had a glance on the link you provided and it seems the bitcoin seized were that of some sort of paramilitary officials if I'm not wrong and since the government isbin charge of its soldiers  and ex soldiers then I wouldn't really be that difficult to trace or seize their bitcoin holdings as there might be possibilities of them being aware of the holdings and it seems the bitcoin  seized belonged to a group been held in one wallet.
Generally,  due to the decentralized nature of bitcoin,  I don't think it will be possible for the government  to seize or take control of the asset of anyone.

Well, I believe Bitcoin is decentralized for a reason, if not more. I doubt the government would hardly pin point owners of BTC even if they get to trace some, that's if its banned in the particular country I mean.

If it's by purchase I doubt still, that the government can acquire all Bitcoin because Bitcoin doesn't belong to only one single individual, just like the normal fiat currency. They can sure acquire a great share that we can tag them as whales.
El Salvador is a good example of a country that adopted Bitcoin as a legal tender, and it is clearly evident that the government doesn't own all the Bitcoin there, but they rather mine through their volcano powered farms.

The Israeli government and previously confiscated a cryptocurrency that belonged to Palestinian firms associated with the Islamist group Hamas. And the Binance exchange helped him in this, which can block any account at any time and confiscate cryptocurrency, as required by law enforcement agencies - https://www.reuters.com/world/middle-east/israel-seized-binance-crypto-accounts-thwart-islamic-state-document-shows-2023-05-04

No... How TH do you think it's possible for anyone to have full access and control over the resources Which is in your control... It's impossible..
The reasons why the pseudonymity in Bitcoin was made was to limit the easiest means to personal identification... We've also got wallets to store your coin under your full inspection and control.

Sandra 🧑‍🦰

In the thread title you mentioned two possible ways you feel that government may stop the existence of bitcoin.
By seizure:
It is not possible to find everyone's seed phrase and seize their bitcoin. This is because some people are living in one country and their seed phrase is in another country. Again, even if everyone happens to live in a particular country (which is not possible, just trying to have a scenario that one government controls the whole world), the government still won't have the technology to detect where everyone's seed phrase is hidden.

By purchase
The government cannot buy all the bitcoins because there are few who will no be willing to sell to the government no matter how much they offer. Besides, the more the government buys, the higher the price and it will get to a point that the price will be so high that the government won't be able to buy again.

Seizing of hardware wallet is possible only if the government ban bitcoin in the country, bitcoin will be illegal and what is illegal means must not be seen or use by the people. As a result of the ban, the government can request for thorough search of people that are either ex crypto investors of traders and anyone found with such can get a sentence for that, that's the worst I think the government can do but that will be barbaric and inhumane to be honest, what happen to human freedom, how is exactly is bitcoin harmful to people and the government, they need to answer those questions if they want to ban people from using bitcoin.

I think people are not so foolish to go around and be saying to people that they have bitcoin and here is there hardware wallet and seedphrase. The government can seize a hardware wallet and seedphrase and meet nothing in the wallet because a seed phrase without bitcoin in it  and seed phrases with passphrase is two different wallets. As long as seed phrase is back up properly, you have nothing to fear with bitcoin. I hope they are not reading this comments.

It is indeed possible that funds that passes CEX can be seized but not all funds is passing through CEX so the government cannot seize all Bitcoin through that method.  Besides when the government start seizing centralized exchanges' user funds, people will start evading centralized exchanges thus making the idea of government acquiring all BTC through seizing impossible.

Even if the government had the data of people having Bitcoin, these people can easily hide their stash and remove traces of it through the use of mixers and other services that offers the same function.

Mind you that even if the Bitcoin in a particular address is stolen, the government cannot seize it, unless the address is on a centralized platform, if the address is in a non-custodial wallet like Sparrow and you have the recovery phrase, it cannot be seized. The only thing law enforcement can do is to "flag" the address and declare the coins in it "tainted", they would pass this information on to centralized services, and if those coins ever gets to a centralized platform, it would be seized, but if the hacker is shrewd, they would use mixers and decentralized exchanges without kyc and they'll not be caught.

Mate, if your bitcoin is not under their custodial, then they can't acquire or seize your asset from you, now what should be your greatest fear is when you're still there found with using a centralized exchange, remember we do say it that not your keys not your coins, if you're still using a custodial exchange to hold your asset then know that you're not safe, you should make use of a non custodial wallet, when government are seizing people's fund, you will be exempted because you're with your bitcoin under your control and not with centralized institutions.

If they only see that those property or personal items has been used for illegal maybe they can but as far as decentralized concern they cannot comfiscate from anyone until proven thats an evil money acquired from hacking or anything bad. Thats too much its an extortion of highest level just because if they wanna do that. They cant argue that bitcoin is illegal since it become a mainstream decentralized system where users are freely using for transaction and finance innovative method and solutions.

it is for this reasons that bitcoiners are admonished to make use of self custody wallets to avoid the government doing what they feel they can do at any time with our money. The assets seized by the Israeli government can only be assets located in centralized exchange wallets. There's no way any one can have access to your funds in a self custodial wallet without your private keys except that the owners of those funds might have given out their private keys to the wallet which those cryptocurrency were seized out of duress.

It is becoming so important with the way things are going with how our governments are responding as regards to people holding cryptocurrency that we need to be secretive and private about our owning of the digital currency so we don't become a target of government or it's agency since bitcoin is a currency they can't have access to controlling it due to its decentralized nature, the government do usually feel threatened that holders of it's in much volume can use it in financing ideologies that's against  the government.

Am also using this as an opportunity to pray for a possible end to the killings of  innocent citizens in this Isreal -Hamas conflict, we can always give peace a chance cohabiting without violence.

There is no chance that Bitcoin will ever be seized by the government under duress until a bitcoin owner gives access to his wallet. But there can be something that is not unusual on an exchange platform. Since the start of the war between Israel and the Palestinians, Israel has made various news reports of the seizure of Hamas crypto accounts. There is much doubt as to how true this actually is. However, it is conceivable that they may temporarily take control of some exchange platforms. But it is not possible for anyone to withdraw bitcoins stored in personal or hardware wallets. I think saying something like that would be considered baseless.

What the government may do is confiscate wallets, but in terms of value, I'm sure the government cannot confiscate them. unless they also get access to their wallet recovery seed. somehow they can force the captured citizens to reveal their wallet seeds.
the biggest pressure may be on exchanges, but if it's not in their country, what can those governments do for their citizens who may have accounts on other countries' exchanges who can still carry out trading activities or even keep their Bitcoins on exchanges, even if it remains just not recommended.

The answer is both yes and no. I won't dive into my answer deeper and just say this simple explanation. First, the reasons why Bitcoin is created because of this reason where no one or a group of people or even government can take control of assets that you have therefore there exists a wallet that is self-custody or you are the one responsible for keeping it safe which is on the side of NO answer meanwhile in YES answer is they can take control of centralized exchange to follow the government's rules and may have control of the exchange. Well, there are different reasons for it and that's just one of it.