Sure, but they absolutely can simply come to your home, seize your cash, all stuff you've bought with it, seize the home itself and you as well. A sovereign go

Sure, but they absolutely can simply come to your home, seize your cash, all stuff you've bought with it, seize the home itself and you as well. A sovereign government has full control of the life, liberty and assets of everyone in their territory, subject to all kinds of due process on how they're going to exercise that control or not. The main restraints on gov't power are the ethical and legal choices we the people make to say what the government should be allowed to do, not a physical impossibility to do them. It's not really relevant to debabate whether gov't is capable to seize your virtual assets if it's capable to come and shoot you in the head; it doesn't do that because it's not supposed to do that, not because it's incapable.