In the recent past, cryptocurrencies like Bitcoin have become more common. There are millions of people and institutions using Bitcoin for transactions.
As the most popular cryptocurrency, Bitcoin alone has over 109 million users. The growing popularity of Bitcoin is its nature.
What Is Bitcoin?
There is a high chance that you have heard about Bitcoin already. But do you understand it and how it works? Bitcoin is a virtual or digital currency. As such, you can use Bitcoin to transact.
Specifically, you can buy and sell Bitcoin through cryptocurrency exchanges. There are also many mobile apps and software such as the bitcoin revolution for trading Bitcoin. Bitcoin operates like fiat currency.
You can buy and pay for goods and services with Bitcoin. However, unlike fiat currency, Bitcoin does not exist in any physical form. You cannot keep or withdraw Bitcoin from your typical bank.
You will need a Bitcoin wallet to transact Bitcoin. You are the only person who can access this Bitcoin wallet. Bitcoin is decentralized, meaning no single entity or government controls it.
Through the central bank, the government controls fiat currency by determining the number of banknotes or coins in circulation. And this is not the case with Bitcoin. It operates based on a highly encrypted platform.
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Conclusion: Can the Government Seize Your Bitcoin?
Bitcoin is seizure-resistant by its virtual and decentralized nature. Although the government can coerce a user to reveal private keys to a Bitcoin wallet, this is very rare and difficult.
The anonymity and privacy that Bitcoin provides make it almost impossible for the government to seize your bitcoin.