[dwaltrip]

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.

[synchronise]

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]

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.

[qq66]

"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]

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]

Yes, they can. This has also been true for hundreds of years.

[lucb1e]

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]

USA and UK are already doing it:

[1] http://news.cnet.com/8301-31921_3-57364330-281/judge-america...

[2] http://www.bbc.co.uk/news/uk-england-11479831

[Lazare]

As always, relevant XKCD: http://xkcd.com/538/

[CoreSet]

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]

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 :)