[jerf]

True, but chanting that at every correlation you see is a great way to never learn from anything.

To be honest it's a bit hard to believe this reporting has nothing to do with the price dropping ~10%, given that one of BitCoin's big parts of its value prop is precisely supposed to be that governments can't do this.

[PretzelPirate]

Bitcoin says that whoever has the private key controls the funds. In this case, whoever was in custody before the FBI took the funds was seriously negligent in protecting their private key (which is not that hard to do).

[grey-area]

Governments can simply take the private keys if they wish along with your computer. Come up with smart ways to avoid that (but I'll memorise the private key!) and they'll just lock you up instead.

In the case of coins moving through exchanges, they can simply take the coins instead by threatening the exchange.

In many other cases they can also catch you when you try to use the money by converting it into a currency that people actually use to transact like USD.

[oblio]

https://xkcd.com/538/

[ezekg]

Pretty much what I'm assuming happened.

[jerf]

That it is "easy" to protect private keys is the theory, yes. If it turns out not to be an accurate reflection of reality, that's going to affect the value proposition of BitCoin.

Do not mistake theory with reality.

[teachingassist]

As best I can tell, Bitcoin has moved more than [it has so far today, ~6%] on 42 days in the last year, and 38 days the year before that, considering open-to-open values.

10% daily moves happened four times in May: twice in each direction.

Statistically, we should consider it just a normal, unremarkable day for Bitcoin.

[TameAntelope]

I... genuinely am confused. What is it here that a government isn't supposed to be able to do?

[bdcravens]

If you keep your key secure, government can't seize your assets, as they can with a bank.