Government confiscation

[henryreardon]

I keep about 80% of my bitcoins in my Coinbase (US company) online vault, and about 20% online in my BTC-E (foreign company) account.  I always have a teeny tiny worry in the back of mind that I'll wake up one day and the headlines will read "US Government bans Bitcoin, freezes all Bitcoin assets" and I will be unable to access my Coinbase coins.  Am I paranoid?

[1715074866]

1715074866

[1715074866]

1715074866

[Flashman]

Paranoid is the new sensible

But seriously, given exchange and wallet failures over last 2 or 3 years, ANY site seems to have about a 10% risk of getting fucked, whether by mismanagement, incompetence, hackers, regulation, just plain scamming or whatever.

So yeah, wouldn't leave coin on any of them.

[MicroGuy]

I keep about 80% of my bitcoins in my Coinbase (US company) online vault, and about 20% online in my BTC-E (foreign company) account.  I always have a teeny tiny worry in the back of mind that I'll wake up one day and the headlines will read "US Government bans Bitcoin, freezes all Bitcoin assets" and I will be unable to access my Coinbase coins.  Am I paranoid?

Yes. I think you might have a tinge of paranoia.

In reality, the bitcoin "caretakers" have all been co-opted by the establishment, and are now, for the most part, under its control. Thus, there would be no reason for the US Government to ban the currency.

[bitkilo]

Keeping some of your coins in coinbase vault is a good idea if your not 100% sure about your offline storage solution, they should be safe from hackers there but government is another thing.
Have a look at something like Ledger or Trezor wallets.
Always a good idea to spread your BTC savings about a bit.
I always keep 70% cold storage, 20% Coinbase, 10% hot wallet or similar.

[hilariousandco]

If Bitcoins aren't in your wallet, they aren't yours.

Paranoid is the new sensible

So yeah, wouldn't leave coin on any of them.

Good advices. It's not just the USG that you need to be weary of. Many things could happen to both of them and BTC-e is probably less safe for a multitude of reasons but I wouldn't keep large amounts online anywhere. Keep your 'savings' offline and keep a little in your online accounts to spend or trade etc.

[luv2drnkbr]

If the coinbase vault works the way they claim, you would actually be safe in that scenario.  (Because, if it works the way they claim, they truly don't have access to all the private keys necessary to spend the multisig funds.)  Unfortunately, unless you examine the javascript code being used every single time you use the site, you can't be 100% sure that it works the way they claim.  Still, I think it's *likely* that it does, and that you would indeed be safe in such a situation.

However, as others have mentioned, when in doubt, always assume the worst, and if you and you alone don't control your private keys, then the money isn't yours.

I don't use coinbase's vault, because I'm savvy enough with Bitcoin to know how to secure my own funds.  But if I wasn't as good as I am, and I simply didn't know how to properly secure my funds-- then ya I wouldn't know who to trust, and indeed that would be a scary situation to be in.  So my advice to you is to learn more about tech and security, so that you can know enough to be confident in your own solution.  However, until that point, I think it's highly probable that you can trust Coinbase's vault, because if it works the way they claim, which I think it probably does, then you are safe.

[Grand_Voyageur]

I keep about 80% of my bitcoins in my Coinbase (US company) online vault, and about 20% online in my BTC-E (foreign company) account.  I always have a teeny tiny worry in the back of mind that I'll wake up one day and the headlines will read "US Government bans Bitcoin, freezes all Bitcoin assets" and I will be unable to access my Coinbase coins.  Am I paranoid?

 
I don't know IF you're paranoid; however, also a foreign government could confiscate your BTC. So, I think if really want to be on the safe side you should resort to your own cold storage, maybe with paper wallets or pc wallets?
Maybe I am the real paranoid here.
 

Just My Two Satoshi

[Willisius]

The government cannot actually "freeze" bitcoin assets as they would need the private keys of all addresses to effectively do this

They really cannot "ban" bitcoin either as it is something that can be traded in a p2p manner plus the various nodes can operate in ways that would prevent government detection.

[henryreardon]

No government can "freeze" properly secured bitcoins.

But couldn't the USG issue an injunction against Coinbase and prevent users from being able to login to access their vaults and bitcoins i.e. effectively freezing them? 

By cold storage I assume you mean on a USB thumb drive in a safe or something like that correct?  I have considered that but the thought of large amounts digital money on a USB stick scares me.  luv2drnkbr may be right maybe I just need to educate myself more on bitcoin tech and security beyond online vaults and USB drives.

[BADecker]

Paranoid is the new sensible

Yes, but, think of what things will be like when they go a little further and schizophrenia is the new sensible.   

[redsn0w]

I suggest you to make a cold wallet and remove your bitcoin from coinbase , it is more secure .

[Grand_Voyageur]

No government can "freeze" properly secured bitcoins.

But couldn't the USG issue an injunction against Coinbase and prevent users from being able to login to access their vaults and bitcoins i.e. effectively freezing them? 

By cold storage I assume you mean on a USB thumb drive in a safe or something like that correct?  I have considered that but the thought of large amounts digital money on a USB stick scares me.  luv2drnkbr may be right maybe I just need to educate myself more on bitcoin tech and security beyond online vaults and USB drives.

Here, You can find an explanation of Cold Storage. As I said before You could use for your cold storage a Paper Wallet.

 

[elasticband]

I keep about 80% of my bitcoins in my Coinbase (US company) online vault, and about 20% online in my BTC-E (foreign company) account.  I always have a teeny tiny worry in the back of mind that I'll wake up one day and the headlines will read "US Government bans Bitcoin, freezes all Bitcoin assets" and I will be unable to access my Coinbase coins.  Am I paranoid?

You keep 100% of your coins on online exchanges where you do not control the private keys....... punch yourself hard in the face.

[cyberpinoy]

I keep ALL my cins offline in my own private wallet that is not connected to the internet 24 hours a day so I have no worries about this. You can be sure if the US government ever did seize your Bitcoins. They would be selling them, HOWER they can not just seize them, a law would have to be passed, and they are not considered a currency so they have no legal right to seize them at all. If for a weird reason the US Government would recognize them as "Currency" or "Commodity" get your coins out of there, because at any time the US government has the right to Seize residents currency that could be related to terrorist actions. This includes USD, Gold, Silver, Bronze, platinum, or any other possible form of currency or commodity.

[cr1776]

No government can "freeze" properly secured bitcoins.

But couldn't the USG issue an injunction against Coinbase and prevent users from being able to login to access their vaults and bitcoins i.e. effectively freezing them?  

By cold storage I assume you mean on a USB thumb drive in a safe or something like that correct?  I have considered that but the thought of large amounts digital money on a USB stick scares me.  luv2drnkbr may be right maybe I just need to educate myself more on bitcoin tech and security beyond online vaults and USB drives.

Coins at coinbase are not "properly secured" (per Holliday).

As was stated above, if you don't control the private keys, they are not your coins. You are just a creditor to whomever controls the keys.

[Q7]

Why do want to keep there in the first place? Given the history on exchangers going bust, that would tell you everything. Unlike paper money where you can't just keep everything in your house, bitcoin is totally different. Create your very own wallet and have your btc accessed only by you.

[shawshankinmate37927]

Am I paranoid?

Are you familiar with the term "Goxed"?

[Rampton]

I keep about 80% of my bitcoins in my Coinbase (US company) online vault, and about 20% online in my BTC-E (foreign company) account.  I always have a teeny tiny worry in the back of mind that I'll wake up one day and the headlines will read "US Government bans Bitcoin, freezes all Bitcoin assets" and I will be unable to access my Coinbase coins.  Am I paranoid?

If you aren't the sole controller of your private keys, you don't have any bitcoins.

No government can "freeze" properly secured bitcoins.

They could crack the password like they did with some of DPR's coins, though if you have a ridiculously strong password this shouldn't be too much of an issue.

[1Referee]

You should only worry about the way you store your coins.

Withdraw most of your coins to an offline wallet on your pc.

I have never seen some one who kept all his coins on exchanges 

[Flashman]

Paranoid is the new sensible

Yes, but, think of what things will be like when they go a little further and schizophrenia is the new sensible.   

Yeah, that could work "Sorry Mr Fed, only my alternate personality has the keys and he only comes out in tropical countries with no US extradition treaties."