New Jersey Government Seizes $165,000 from Atilis Gym's Bank Account -- 100% of Gym's Assets for 'Crime' of Remaining Open

submitted by scrubking from thegatewaypundit.com

sorted by:
top
newinsightfulfun
you are viewing a single comment's thread.

view the rest of the comments →

[–]mrwizardd 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (7 children)

yes, they probably had a standard wallet account, and they got a court order and contacted the wallet company and they withdrew the coins as us dollars. technically, you can not withdraw bitcoins AS PHYSICAL BITCOINS, cuz it just dont work that way.. bitcoins are quite simply 256 ZEROES AND ONES, thats it.. a private key for bitcoin is two hundred and fifty six zeroes and ones. that is a private key.. if you have the private key, you can calculate the bitcoin address and then you can move however many bitcoins reside at that address.

for the most part, i have textbook knowledge about bitcoin.. i did download the bitcoin core about two years ago while i was in asia tho..

cant bitcoin be stored in some address that IS NOT MANAGED BY A WALLET SERVICE?

this would mean that now you have to manage your private key, i think.. which is no small task..

but i think it can be done.. to just pick a random private key.. convert that private key to a wallet address... move your bitcoin there.. and you keep your private key.. you manage your private key..

now, if you do it that way, how is the government going to even know about your bitcoins? you cant take it if you dont know about it..

private keys can be encrypted according to your specifications.. and stored according to your specifications..

you cant steal of confiscate what you dont know about..

[–]Intuit 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

they got a court order and contacted the wallet company

With those companies you don't own anything, just have an IOU that the company may or may not honor in the future. Basically like a bank. Always manage your Bitcoin directly with your own private key that no company has.

you can not withdraw bitcoins AS PHYSICAL BITCOINS, cuz it just dont work that way.. bitcoins are quite simply 256 ZEROES AND ONES, thats it

There is no such thing as a Bitcoin, any more than a unicorn. The ledger just says that the address you control has X.X bitcoin in it. When you transfer Bitcoin to another address, nothing is sent, just the counts are adjusted. The private key and address is not the Bitcoin, since at the very least those can be copied. Those are just keys and addresses.

this would mean that now you have to manage your private key, i think.. which is no small task..

but i think it can be done.. to just pick a random private key.. convert that private key to a wallet address... move your bitcoin there.. and you keep your private key.. you manage your private key..

Modern practice is to generate the private key from a human-readable series of common words. The words give a lot of entropy (randomness) and you can generate multiple private keys from it (common practice is to move the Bitcoin from one address to another, for better privacy).

Governments figure out what Bitcoin is yours by tracing how you got it in the first place. Major services keep track of who buys it from them. The whole transaction trail is public.

[–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

You'd need to write the key down or so'm.

[–]sendmetovegas 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

private keys are not typically "written down", as you say..

[–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

How would they know what it is?

[–]Node 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

I believe you're generally correct in claiming private bitcorn addresses remain private. Turning them into dollars is a little more difficult for those wishing to remain private.

[–]sendmetovegas 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

it is not so much that the owner of the bitcoins need to remain private, but instead it is important that the actual coins address or addresses remain unknown to everyone and know only to its owner.

coins can be stored at random bitcoin addresses, where only the owner will know the private key... it will be the owner's responsibility to store said key safely.

Turning them into dollars is a little more difficult for those wishing to remain private.

this is entirely an incorrect statement.

if i were to just randomly pick a wallet address and move either all or some of my coins to that address, it is not problem to convert a portion or all of what is at that address to cash.

just move some back to coinbase or whatever wallet you use.

dink.

[–]sendmetovegas 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

i should openly admit that i have never had a wallet and i have never bought or sold a single bitcoin, but i have done a shitton of reading about bitcoins and i have also fucked around with the bitcoin core a bit.

i am a c programmer also.