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If the government is forcing you to hand over your possessions (or provide services) it does not matter what currencies they can or cannot print. There is no limit to the strategies available to them...

Example 1

"We're buying your house (whether you like it or not), how many Bitcoins do you want for it?"

"10,000"

"Great. By the way, we just made a new law that says we can pay you in peanut shells as a substitute for Bitcoin, at the same rate."

Example 2

"We're buying your house (whether you like it or not), how many Bitcoins do you want for it?"

"10,000"

"Ok here's your 10,000 Bitcoins"

(10 minutes later...)

"By the way, under the PATRIOT act, we're ordering you to hand over all your encryption keys. Including the private key of your Bitcoin wallet. If you don't make a fuss, we'll be nice and let you keep 1%, and not throw you in jail."



Of course it matters, because decisions like these don't exist in a vacuum. The rest of the world has an effect on what decisions get made, (well, in the countries we're talking about anyway), so if if a government has to resort to much more drastic measures to take your money, these measures are less likely to happen.

This doesn't mean that something like this will never happen, but I don't think anyone's expecting a perfect solution.


I think the gist of it is that the things you're being "protected" against with Bitcoin are, effectively, drastic measures.

Of course, there are people who believe that the existence of legal-tender laws is equivalent to jackbooted thugs breaking down their doors and holding guns to their heads. But those people probably aren't worth paying much attention to.




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