Comment by quantummagic
2 hours ago
And if thieves stole a bag of paper from you, that happen to have the number $100 and some other artwork written on them by the government, what then? It's not money, it's just some "paper asset"? You're just showing your own personal bias about what the definition of money is.
It's an important distinction.
$3.5B stolen was "stable coins", which you could equate to a piece of paper with a dollar amount written on it.
Those are largely freezable by the issuer of the paper.
Then we have $2.4B in Bitcoin and ETH stolen. Those are not directly freezable.
However, if that does create a liquidity challenge for these exchanges, what if the price just so happens to drop by 60% after trading is restricted? That liability might shrink in actual value.
What if the bag of paper "money" is in a foreign currency? You'd still happily call it money, but then the distinctions you're trying to draw with crypto don't really apply. Think of crypto as a foreign currency, it still functions as money.
Yes, and we could have a paper money system where a registry of stolen serial numbers is kept and they can’t be deposited at any bank or used to pay the government ever again.