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I've had a question that I"m curious to hear the community's reaction on: Doesn't the FBI wanting to seize the bitcoins do more to legitimize the currency than

I've had a question that I"m curious to hear the community's reaction on: Doesn't the FBI wanting to seize the bitcoins do more to legitimize the currency than anything thus far? Isn't it tantamount to saying "Yes, this is like dollars, francs, or another legitimate currency that we need to seize." I'm wondering if that conversation has come up among management at FBI and what the outcome has been.

aroman 13y ago
That's what I thought as well. In fact, wouldn't their "cashing out" the Bitcoins be tantamount to an endorsement of Bitcoin? They're injecting money into the ecosystem and directly helping to circulate it. That they are even trying to exchange the Bitcoins for USD is, at least in my mind, U.S. governmental approval of Bitcoins.
mseebach 13y ago
It's like any other asset with a market value. Collectible baseball cards have no inherent value to me (I'm not a baseball fan), they're just (mildly aesthetically attractive) pieces of paper. In that sense, they are similar to Bitcoin. That some people will pay several million dollars for them does not change that fact. If a drug dealer settled all his transaction in baseball cards, the FBI would of course confiscate them.
racbart 13y ago
If he had a $1m car and the FBI wanted to seize it, would it legitimize cars as a currency?
- Cthulhu_ 13y ago
  It definitely wouldn't if it was $80 m in cocaine; the FBI would confiscate it and have to hand it over to the DEA to have it destroyed. Whether or not the FBI wants to seize it and spend it in some way, or just to seize it so it can't be spent by DPR or anyone anymore is up for debate. I'm not actually sure what the laws are regarding money or possessions seized from criminals over there.
  - OvidNaso 13y ago
    Cocaine is a different story as it is illegal in and of itself. As far as I know there is no momentum to outlaw Bitcoin itself. Other seized forms of property are routinely auctioned off at public auctions which is presumably a possibly avenue for Bitcoins as well.
- jlgreco 13y ago
  It would legitimize the (uncontroversial) assertion that cars have worth.

aroman 13y ago

That's what I thought as well. In fact, wouldn't their "cashing out" the Bitcoins be tantamount to an endorsement of Bitcoin? They're injecting money into the ecosystem and directly helping to circulate it. That they are even trying to exchange the Bitcoins for USD is, at least in my mind, U.S. governmental approval of Bitcoins.

mseebach 13y ago

It's like any other asset with a market value. Collectible baseball cards have no inherent value to me (I'm not a baseball fan), they're just (mildly aesthetically attractive) pieces of paper. In that sense, they are similar to Bitcoin. That some people will pay several million dollars for them does not change that fact. If a drug dealer settled all his transaction in baseball cards, the FBI would of course confiscate them.

racbart 13y ago

If he had a $1m car and the FBI wanted to seize it, would it legitimize cars as a currency?

Cthulhu_ 13y ago
It definitely wouldn't if it was $80 m in cocaine; the FBI would confiscate it and have to hand it over to the DEA to have it destroyed. Whether or not the FBI wants to seize it and spend it in some way, or just to seize it so it can't be spent by DPR or anyone anymore is up for debate. I'm not actually sure what the laws are regarding money or possessions seized from criminals over there.
- OvidNaso 13y ago
  Cocaine is a different story as it is illegal in and of itself. As far as I know there is no momentum to outlaw Bitcoin itself. Other seized forms of property are routinely auctioned off at public auctions which is presumably a possibly avenue for Bitcoins as well.
jlgreco 13y ago
It would legitimize the (uncontroversial) assertion that cars have worth.