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Bitcoin as a method to make some assets levy proof


Seadragon
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Having Bitcoins itself would not be the problem.  Not disclosing them during the debtors exam would be.  It would be the same as any other investment.  So as far as the legal part, that depends.

 

Since it is virtual currency, the only way for them to get access would be you give it to them either voluntarily or by court order since only you can move or transfer the Bitcoins.

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Guest usctrojanalum

This is a prime example of technology being well ahead of the law.  Does a Court have the power to order that bitcoins be levied? absolutely anything that is considered an asset, whether tangible or intangible can be levied provided there are no statutory exemptions.  Now, there has to be a mechanism to levy those said bitcoins.  I do not know of, or can even reasonably fathom how the actual levying would be done.

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There's an interesting case whether or not Bitcoin can be seized as an asset. It involves the arrest of the founder of Silk Road (a very interesting site). The Feds seized millions worth of Bitcoin as a result of his arrest. He filed a motion in court seeking to have his $30 million in Bitcoin returned claiming that the Bitcoin is not subject to civil seizure laws.

 

http://www.nbcbayarea.com/news/local/Silk-Road-Creator-Wants-Bitcoin-Returned-237044611.html

 

If the judge rules that Bitcoin is not subject to seizure, then it's probably fairly safe. 

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There's an interesting case whether or not Bitcoin can be seized as an asset. It involves the arrest of the founder of Silk Road (a very interesting site). The Feds seized millions worth of Bitcoin as a result of his arrest. He filed a motion in court seeking to have his $30 million in Bitcoin returned claiming that the Bitcoin is not subject to civil seizure laws.

 

http://www.nbcbayarea.com/news/local/Silk-Road-Creator-Wants-Bitcoin-Returned-237044611.html

 

If the judge rules that Bitcoin is not subject to seizure, then it's probably fairly safe. 

I don't see how "civil" fits in there- it is a criminal case.  He was operating a criminal enterprise and conspiring to have some associates murdered plus, if I remember correctly, other criminal charges as well.  

 

He is pissing in the wind trying to fight them.  Bitcoin is a form of income and profit that he made illegally and they can seize any and all profits from criminal activity.  I'm sure that in the slight chance that the judge rules in his favor they could slam him on federal money laundering and racketeering charges not to mention tax fraud for unreported income to the IRS so then how much better off is he sitting in Leavenworth for 20 years on top of the charges he was practically caught red-handed on?   On a side note I have been expecting the government to soon start initiating specific methods to crack down on bitcoin being used for illegal purposes; this just may be the final straw for it.  

 

As far as just owning bitcoins as an asset, keep your bitcoin wallet on a portable external hard drive and no one will ever know.  Of course you would need to find a foolproof hiding place for the hard drive (you wouldn't want it in a safe in your house or in a bank safe deposit box because that is too obvious.) Up under the dash of a late-model car is a pretty good place as it blends right in with all the electronic parts there. You can store and transfer bitcoins in a Mt. Gox account with a user-name and password but that is only as secure as any other "secure" websites.

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Yes but to convert to bitcoin you would have to create an account at Mt. Gox (or at another bitcoin exchange.)  The best way to acquire bitcoins anonymously, other than mining them which is a very exhaustive and expensive endeavor, is to offer products or services for sale with bitcoin as the payment method or to buy them from someone.

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bitcoin purchase through a private transaction is viable. Mt Gox is gone now so this bitcoin now would be losing value. I mined some and am holding a miniscule amount for the day it goes sky high.

 

Unfortunately the Mt. Gox articles I have read in the past week regarding their disappearance and ultimate filing for BK indicates that bitcoin has already peaked.  It hit a high of around $900 and now has plummeted to about a third of the value.  The investment brokers are indicating that this failure may be the death of bitcoin.  

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Mt. Gox's failure is by no means "the death of bitcoin."  The high point was over $1,100 in December and it went down to just over $400 during the Mt. Gox troubles.  It has consistently rebounded since- as of today it is at $560 and trading is as heavy as ever on the major exchanges. 

 

In my opinion now is a good time to buy. 

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Mt. Gox's failure is by no means "the death of bitcoin."  The high point was over $1,100 in December and it went down to just over $400 during the Mt. Gox troubles.  It has consistently rebounded since- as of today it is at $560 and trading is as heavy as ever on the major exchanges. 

 

In my opinion now is a good time to buy. 

 

The problem is this is a HIGH risk investment and it is unregulated.  There is NO recourse for consumers when the "house" like Mt. Gox folds and disappears.  

 

A drop of more than half the value is catastrophic and a minimal recovery to less than half the value in 3 months isn't a recovery.  From an investment standpoint it remains high risk and volatile.  One more failure and it will be done for.

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Guest usctrojanalum

if you look at the history of bitcoin, a drop of half its value is not even remotely close to catastrophic. it has been insanely volatile since day one. trading in bitcoins is no more riskier than trading forex or options.

 

i also post on an investment forum, the dudes there believe now is a good time to get into them because the general public thinks bitcoin are doomed.

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Being unregulated it what is so good about it.  Just like in any type of investment do not risk more than you can afford to lose. 

Bitcoin is gradually becoming more and more mainstream and the Mt. Gox failure was barely even a bump in the road.  For example this month there are bitcoin ATM's being installed in Austin and Seattle. 

 

The only thing that would spell doom for bitcoin is if (when) China's economy collapses but that will be a colossal catastrophe for the entire world economy anyway. 

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I bought some stuff at overstock.com and target with it. I had initially mined the bitcoin when it was 430 then went to 1200(I bought some stuff online) then fell and is now going up. If governmental hackers would leave it alone then it wouldn't roller coaster. transaction fees for those purchases was less than one cent by the way.

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