2013-10-28 AlJazeera: The FBI's Bitcoin address

[Arvicco]

http://www.aljazeera.com/indepth/opinion/2013/10/fbi-bitcoin-address-2013102862850865999.html

It can be argued that either scenario, liquidation of the coins or holding by the US government, leads to a tacit but strong legitimation of Bitcoin trade. If the coins are sold, either through a traditional exchange or through some kind of public auction mechanism, the US government would be accepting dollars in exchange for Bitcoins. Once that happens, why shouldn't the rest of society including banks and other financial institutions be able to do the same confidently? Numerous US financial institutions and businesses fear any dealings in Bitcoin would bring stigmatisation; such fears would be rendered obsolete. With the fall of Silk Road and the seizing of its funds, a situation has now been created that in the long term might lead to Bitcoin's final consolidation as a legitimate currency in the US.

[Carlton Banks]

A point that myself, and no doubt others, have already made here on Bitcointalk. It's possible that the asset sale may be put off while the US government decides what it's long term position on cryptocurrency will be.

If there are any plans to illegalise cryptocurrency, they will destroy the coins. Sent to eater address oblivion, or recorded destruction of the private key... without revealing the actual private key in the process of recording the destruction? Is there are way of provably destroying a private key!?!?!?!?!?! Seems self-repudiating.

[Birdy]

A point that myself, and no doubt others, have already made here on Bitcointalk. It's possible that the asset sale may be put off while the US government decides what it's long term position on cryptocurrency will be.

If there are any plans to illegalise cryptocurrency, they will destroy the coins. Sent to eater address oblivion, or recorded destruction of the private key... without revealing the actual private key in the process of recording the destruction? Is there are way of provably destroying a private key!?!?!?!?!?! Seems self-repudiating.

No it's impossible to prove, because there is no way to know if another copy of that key exists.
The only possible way to prove destroying the coins would be sending them to an obvious eater-address.

[willphase]

No it's impossible to prove, because there is no way to know if another copy of that key exists.
The only possible way to prove destroying the coins would be sending them to an obvious eater-address.

there was some discussion on making provably unspendable outputs using custom scripts on the bitcoin development mailing list here.

Will

[Birdy]

there was some discussion on making provably unspendable outputs using custom scripts on the bitcoin development mailing list here.

Will

Guess I have to be more careful using the word "impossible"

[Tirapon]

I think its possible to create a bitcoin address with no valid private key? (and provable that no private key exists.)

[darkmule]

If there are any plans to illegalise cryptocurrency, they will destroy the coins. Sent to eater address oblivion, or recorded destruction of the private key... without revealing the actual private key in the process of recording the destruction? Is there are way of provably destroying a private key!?!?!?!?!?! Seems self-repudiating.

If there were plans to outlaw cryptocurrency in general, FinCEN of all government entities would be well aware of this and would not even bother promulgating regulations.  The criminal complaint in the Ulbricht case itself emphasizes that Bitcoin has entirely legitimate applications, something I can't see them bothering to argue in a charging document unless it actually does reflect policy.

Things like illegal drugs are routinely destroyed, when not recycled for the purpose of controlled buys or other sting operations.

So far, the only public statement by the feds has been that they intend to liquidate the Bitcoin somehow.  Even the snarky way they transferred the funds (324 FBI) seems to indicate whoever is handling them has at least some clue and a measurable sense of humor (usually lacking in feds).

I'm still sticking by my prediction that they'll get rid of the coins in a stodgy, old-fashioned way, like selling it all at once in an auction.  They get as many weird objects by forfeiture as you see on one of those pawn shop reality shows, and that's how they usually do it.  There are a number of smarter ways they could do it, but I'd bet they use their old standby.

[Cubic Earth]

I think its possible to create a bitcoin address with no valid private key? (and provable that no private key exists.)

I would think so as well.  Maybe not provable, but highly unlikely that a private key exits.  I would think one could use a similar process to how vanity addresses are generated, except you wouldn't be starting with a private key.

1ThisAddressIsUnspendable46HsteKudy could be the address.  The "1ThisAddressIsUnspendable" part would be chosen first and the "46HsteKudy" would be a combination that makes the address a valid bitcoin address.  It should take, on average, about 4 billion attempts before a suitable ending would be found.

[Tirapon]

I think its possible to create a bitcoin address with no valid private key? (and provable that no private key exists.)

I would think so as well.  Maybe not provable, but highly unlikely that a private key exits.  I would think one could use a similar process to how vanity addresses are generated, except you wouldn't be starting with a private key.

1ThisAddressIsUnspendable46HsteKudy could be the address.  The "1ThisAddressIsUnspendable" part would be chosen first and the "46HsteKudy" would be a combination that makes the address a valid bitcoin address.  It should take, on average, about 4 billion attempts before a suitable ending would be found.

I seem to remember reading that you can actually create a valid address which, based on the maths, has no corresponding private key. So not even 'highly unlikely' that a private key exists, but provably impossible.