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Doesn't the technical architecture of the Bitcoin system make the seizure of actual Bitcoins by a third-party impossible or at least very difficult?

by CoreSet 13y ago

dwaltrip 13y ago
Yeah definitely more difficult, but it depends on the storage mechanism. But I suppose even if you simply had a private key hidden in some random folder or written down somewhere (there are more secure ways - one is breaking a key into multiple parts and spreading to separate people), it would be hard to locate or identify.
- CoreSet 13y ago
  I suppose the bitcoin ethos of a decentralized network - with no single vulnerable point of attack - breaks down once you consider that until you can buy groceries, pay rent, and just generally use the currency everywhere, there's always the last point of vulnerability: wherever you convert it to "actual" money. But maybe that's an unfair assessment.
  - dwaltrip 13y ago
    For a non-governmental currency that hasn't yet had its 5th birthday, I think bitcoin is doing decently well in terms of merchant acceptance. My personal opinion is that broad merchant acceptance will only come after it is widely used for investment/asset protection (if ever, of course). One indication for this idea is the magnitude by which forex volumes dwarf actual GDP. But it's all speculation :)
- synchronise 13y ago
  It also depends on what possible legal action those parties might have taken against them for not complying with a disclosure request on those funds.
  - CoreSet 13y ago
    So basically: "we can't find your money so you're going to jail unless you find it for us?" I was talking to a friend about encryption the other day and that was his salient point. Unbreakable key? Break it or go to jail.
    - lucb1e 13y ago
      Physical security is an integral part of information security. But if governments start doing things like that, what kind of country are we living in?
      - anewthrowaww 13y ago
        USA and UK are already doing it: [1] http://news.cnet.com/8301-31921_3-57364330-281/judge-americans-can-be-forced-to-decrypt-their-laptops/ http://news.cnet.com/8301-31921_3-57364330-281/judge-america... [2] http://www.bbc.co.uk/news/uk-england-11479831 http://www.bbc.co.uk/news/uk-england-11479831
    - qq66 13y ago
      "Break it or go to jail" is already established law that pre-dates computers ("open this combination safe or go to jail"), but courts have generally held that this law also applies to encryption keys.
      - derekp7 13y ago
        And if the contents of the safe are written in code, or some made up language that the courts don't understand, can they compel you to translate them?
        qq66 13y ago
        Yes, they can. This has also been true for hundreds of years.
    - Lazare 13y ago
stordoff 13y ago
Actually seizing the Bitcoins would be very difficult, but there is (AFAIK) nothing stopping the Courts ordering a person not to deal with or dispose of the Bitcoins (or else be in contempt of court).

Doesn't the technical architecture of the Bitcoin system make the seizure of actual Bitcoins by a third-party impossible or at least very difficult?

by CoreSet 13y ago

Doesn't the technical architecture of the Bitcoin system make the seizure of actual Bitcoins by a third-party impossible or at least very difficult?

dwaltrip 13y ago

Yeah definitely more difficult, but it depends on the storage mechanism. But I suppose even if you simply had a private key hidden in some random folder or written down somewhere (there are more secure ways - one is breaking a key into multiple parts and spreading to separate people), it would be hard to locate or identify.

CoreSet 13y ago
I suppose the bitcoin ethos of a decentralized network - with no single vulnerable point of attack - breaks down once you consider that until you can buy groceries, pay rent, and just generally use the currency everywhere, there's always the last point of vulnerability: wherever you convert it to "actual" money. But maybe that's an unfair assessment.
- dwaltrip 13y ago
  For a non-governmental currency that hasn't yet had its 5th birthday, I think bitcoin is doing decently well in terms of merchant acceptance. My personal opinion is that broad merchant acceptance will only come after it is widely used for investment/asset protection (if ever, of course). One indication for this idea is the magnitude by which forex volumes dwarf actual GDP. But it's all speculation :)
synchronise 13y ago
It also depends on what possible legal action those parties might have taken against them for not complying with a disclosure request on those funds.
- CoreSet 13y ago
  So basically: "we can't find your money so you're going to jail unless you find it for us?" I was talking to a friend about encryption the other day and that was his salient point. Unbreakable key? Break it or go to jail.
  - lucb1e 13y ago
    Physical security is an integral part of information security. But if governments start doing things like that, what kind of country are we living in?
    - anewthrowaww 13y ago
      USA and UK are already doing it: [1] http://news.cnet.com/8301-31921_3-57364330-281/judge-americans-can-be-forced-to-decrypt-their-laptops/ http://news.cnet.com/8301-31921_3-57364330-281/judge-america... [2] http://www.bbc.co.uk/news/uk-england-11479831 http://www.bbc.co.uk/news/uk-england-11479831
  - qq66 13y ago
    "Break it or go to jail" is already established law that pre-dates computers ("open this combination safe or go to jail"), but courts have generally held that this law also applies to encryption keys.
    - derekp7 13y ago
      And if the contents of the safe are written in code, or some made up language that the courts don't understand, can they compel you to translate them?
      - qq66 13y ago
        Yes, they can. This has also been true for hundreds of years.
  - Lazare 13y ago

stordoff 13y ago

Actually seizing the Bitcoins would be very difficult, but there is (AFAIK) nothing stopping the Courts ordering a person not to deal with or dispose of the Bitcoins (or else be in contempt of court).