Topic: What if they tried it - page 6. (Read 750 times)

Although this is a very highly unlikely situation, before the government can generally decide to seize all bitcoin holdings which is not possible, they will need to know the identity of the users and the exact amount of bitcoins they have which can easily be seen on the Blockchain and identity determined from KYC verification that you must have submitted to an exchange at some point. But this will not be totally possible because there bitcoin mixing services that people have engaged to ensure that their anonymity is increased and their transactions on the Blockchain not traceable. For people who mix their bitcoins, it is difficult to know the exact amount of bitcoins that they have.

I have never thought about the consequence of such action. Criminalizing cryptocurrencies will instantly make investors in the sector fugitives because people will start hiding from law enforcement agencies. In my country because of the restriction placed on banks from transacting in cryptocurrencies, the police sometimes harass crypto holders. I am just thinking of the intimidation and arrest we might face if it is criminalized.


Sometimes I hear when people say you can easily move from one country to another if the government becomes unfriendly to Bitcoin and others. This will be possible for only rich crypto holders and people from developed nations that can enter different countries with their passports. Bitcoiners from developing nations will have no option but to sell off their investment because their passport will not grant them entry into any country that has a stable and strong economy.

Let's not forget that there is a difference between gold which only exists in physical form and occupies space so it can be found (if they search you) and confiscated physically and bitcoin that only exists in digital form and doesn't occupy any space so it can be hidden very easily and can not be found or confiscated that easily.

By the way the biggest risk in modern dictatorships (aka democracies) is not them kicking down your door and taking your bitcoin by force. It is not even about taking your bitcoins. It is always in a much "softer" way where they convince you to use bitcoin in a "centralized way" so that they can have full control over you (ie. have a leash around your neck while you have the illusion of freedom).

For example when you want to invest in bitcoin, they convince you to invest in a company that promises to buy bitcoin in your place and in return gives you a piece of worthless paper as a contract or something similar.
Or when you want to store bitcoin they convince you to use a custodial wallet where you don't even have access to your keys or your own coins and in return they give you an account.
Or when you want to accept payments they convince you to use a payment processor that monitors and controls all your payments and financial transactions.
And a lot more.

As you can see some of the points I raised above are too familiar because they are already happening!!!

I am always of the opinion that the government will never do something that causes massive uproar among the public because the governments also have to survive and getting mobbed at is not their first priority, rather being diplomatic is what they have always been.

However regulation comes to my mind here, because that is one method to track crypto transactions happening from a wallet or an IP address to geolocate someone if they wish to. Now I hope the governments do this only for tracking criminals who are rampant in this sector hiding in plain sight as common users.

This is difficult to manage and with KYC based exchanges this is tough indeed. But I am hopeful that such things will not happen.

This is the reasons why it's advised against using a centralized exchange to store crypto assets; apart from that, using platforms that require KYC before one can purchase Bitcoin is a big risk because, in terms of passing KYC, the individual has already exposed their personal information that the government can use to identify them if the exchange agrees to comply with them and give all customers KYC details out. There is a big risk to using KYC platforms. It will be easy for the government to only succeed in such a ploy if every Bitcoin user is using KYC platforms to purchase their crypto, but the identities of those that use DEX platforms cannot be exposed.

It would be hard to seize the crypto and blockchain technology since its a decentralized system where government had to do some work for it to be possible. However, as a government of course they have power to control what's in your country they can make a law that forbidden the use of any crypto or blockchain technology related that way they could get/banned your funds and account. But if they did get your funds and assets, then they will break the law where they took/invaded someone properties also their identity. And crypto is a worldwide transactions so they could only do that to users in their country.

as we all know, cryptocurrencies is a digital asset and so can not be confiscated easily by the government. it's impossible to track down all noncustodial wallets and decentralized networks out there making it difficult for the government to accomplish. I really think that if any government tries this, it would lead to violence amongst citizens because no one would want their hard earn coins to be taken by the government and without any reason, do nothing. definitely the government would have to provide a good reason for such act as this may bring about unrest. so I think it is unlikely, for the government to seize cryptocurrencies just like the US government did to gold this may cause instability in the country.

That was also part of what they did back in the day. There was no place to spend the gold either so the value changed for it.
Also, this was not to 'stop people from owning gold' but the main reason was actually to remove the constraint on the Federal Reserve preventing it from increasing the money supply during the depression.

The restriction was only around for 40 or so anyway and probably had no real meaning after the first few years. Even now, most real precious metal investors (not the ones you see on TV, but the people that do it for a living) don't really invest in gold.

But, with a purely digital medium such as crypto. Taking away the places to spend it, except F2F would kill it's use here in the US.

-Dave

They'll try anything you let them. But Bitcoin offers a unique application which does give you more control over your assets.

Well this is the reason why we heavily recommend not holding bitcoin on exchanges or custodial platforms in general; or better yet — to not use KYC exchanges to have more privacy and not let the government you have bitcoin in the first place.

--> NotYourKeys.org

The US government doesn't need to take away your crypto assets, because it can make you run to hand over cryptocurrencies yourself. This is done very simply: it is enough to pass a law that for the storage or use of crypto huge prison terms are introduced.

They may not find you, but you won’t be able to use crypto either, because everyone around you will also be afraid to do it. Then what's the point of crypto assets?

This is the worst scenario, but most likely, governments will take the path of levying taxes on transactions with cryptocurrencies. That is, one way or another, this area will be regulated. The question to what extent remains relevant.

The good news is that regulation in different countries will proceed at different speeds, which means that there will always be the possibility of moving to a place where conditions are more loyal to crypto. I assume that there will be countries friendly to cryptocurrencies, which means that if the US government decides to take away your crypto, then it will be enough to leave this country.

I doubt it will be possible because bitcoin storage done non custodian wallets will be hard to track but those one centralized exchanges could actually be tracked and I think it was what happened to gold because mostly were stored in banks making them easier for government seizure.

When government banned cryptocurrencies trading or transaction in Nigeria in February 2021 they were only possible to freeze accounts on banks that actually had done crypto transactions but weren’t able to get funds stored on non custodian wallets.

Although this will also frustrate many that actually trade on centralized exchanges because they are the easiest platforms that the government will target but it will be had to accomplish.

What if the governments across the world attempted to seize all of your crypto assets like the US seized all gold from their citizens in the 1900s. Now I'm seeing articles talking about how the US government is trying to be able claim private property.

I think that ultimately this would be very challenging for any government to successfully accomplish. This would cause a revolutionary period again in our world I imagine....