Oddbean

In 1934, the US government passed Executive Order 6102 to seize gold held by Americans. If you think something like that can't happen today, think again Custodial platforms can be forced to comply with government orders like the banks were back then Here’s why: 90 years ago, a recently elected FDR faced a desperate and struggling economy. The president chose to villainize gold savers as ‘hoarders’ and seized their gold in an effort to fix the economy. All gold stored in banks was seized, however, most privately held gold was not. https://m.primal.net/LhFt.jpg When your bitcoin is held on an exchange, it’s not truly yours. The keys are controlled by a third party, which means it can be frozen or seized at any time Check those terms and conditions 👀 Any exchange is one election and one bill away from having its bitcoin seized The beauty of Bitcoin lies in its decentralized nature and the fact you can securely self-custody. When you hold your own keys , nobody can take your bitcoin. Self-custody is freedom and the only way to ensure your bitcoin stays yours. History serves as a cautionary tale. Just as gold was seized in the past, bitcoin held on exchanges could face a similar fate. A mere 5% interest is NOT worth the risk of losing all your bitcoin. Self-custody your bitcoin and secure your future 🔐 It’s good to be a paranoid crypto anarchist!

in 1934 when they passed EO 6102 gold was $25 an ounce. They offered $35 in exchange for the gold. That solid 40% gain sounded good at the time, but looks bad against a historical lens: Dollars depreciated by 99% and gold is around $2,800 an ounce.

I thought about how I would go about 6102 if I was the government. I think I could easily attack KYC Bitcoin that was taken into self custody. From the exchanges, I know who bought Bitcoin, how much and for what price. So I declare self custody bitcoin illegal as of Dec 31. I call that a taxable event and would be able to compute how much tax you now owe. I might even set a flat 50% tax regardless of income bracket. I flag your accounts for automatic audit and if I do not receive the expected tax by April 15, I send the IRS after you with threats of jail time. Most normies would need to sell their bitcoin in order to pay the tax. It also depend on why I am after your Bitcoin. If it is self custody is a threat to the dollar and my monopoly on money printing, then I would not go after the ETFs as that Bitcoin is locked up as an asset and cannot be used as currency. I may even allow self custody owners to trade their Bitcoin for equivalent ETF shares tax deferred, similar to the 1030 exchange in real estate. I guess I don’t see a scenario where the government confiscates Bitcoin held in the ETFs and exchanges but does not have a plan to confiscate self custody bitcoin that was originally purchased from KYC exchanges. The taxation, IRS scrutiny and jail time threat eliminates any “I lost my Bitcoin” excuse. For this initial attack, I don’t care how you get the money because I know most people will only be able to get it thru selling their Bitcoin. If you truly lost your Bitcoin then that’s terrible news for you. Because I’ll garnish your wages or put you in jail or both.