Re:What do you legally “own” with Bitcoin? A short introduct...
by PeterisP on Saturday November 24, 2018 @05:59PM
(#18524399)
In this context, "is this legal" refers to what actions with a key you know are permissible, depending on how you obtained that key. There may be things that you are physically able to do with it but are legally not allowed to, just as there may things you would be legally allowed to do, but may lack the capacity (if, for example, you've forgotten some passphrase). Control and ownership are two very different things in this regard.
Bitcoin users generally accept that if they lose sole access to their keys, they lose sole control of their funds, but not ownership.
For example, if I (for whatever reason) put a private key on a sheet of paper on my desk, and somebody sees that key, then I have lost effective control of that cryptocurrency, but not ownership; if that person would use that knowledge to deprive me of that currency, I would be entitled to have the court send angry armed men to extract compensation for that. It's quite comparable to the scenario where I have gold coins on my desk, and someone manages to take them - they have gained control of the coins, the physical reality enforces a rule where whoever holds the coins can hand them to others in exchange for goods and services (just as mathematical reality enforces a rule where whoever knows the private key can authorize Bitcoin transactions), but gaining control does not necessarily imply gaining ownership. Just as if a rich man gives their accountant the access codes to their electronic banking, and the keys to their safe, it does not mean that the accountant is legally free to do whatever they want with that money (even in the absence of a specific contract) - they have been given control, but not the ownership.
And, of course, simply using Bitcoin does not constitute opting out of the common property rights. You could opt out by a specific contract, but simply being aware "that if they lose sole access to their keys, they lose sole access to their funds" does not mean waiving your legal rights for redress if your funds get taken (though it might be difficult to find the culprit), just as being aware of all the risks involved by drunkenly waving around a bag with gold coins in a seedy alley does not mean waiving your rights for redress if these coins get taken.
Bitcoin users generally accept that if they lose sole access to their keys, they lose sole control of their funds, but not ownership.
For example, if I (for whatever reason) put a private key on a sheet of paper on my desk, and somebody sees that key, then I have lost effective control of that cryptocurrency, but not ownership; if that person would use that knowledge to deprive me of that currency, I would be entitled to have the court send angry armed men to extract compensation for that. It's quite comparable to the scenario where I have gold coins on my desk, and someone manages to take them - they have gained control of the coins, the physical reality enforces a rule where whoever holds the coins can hand them to others in exchange for goods and services (just as mathematical reality enforces a rule where whoever knows the private key can authorize Bitcoin transactions), but gaining control does not necessarily imply gaining ownership. Just as if a rich man gives their accountant the access codes to their electronic banking, and the keys to their safe, it does not mean that the accountant is legally free to do whatever they want with that money (even in the absence of a specific contract) - they have been given control, but not the ownership.
And, of course, simply using Bitcoin does not constitute opting out of the common property rights. You could opt out by a specific contract, but simply being aware "that if they lose sole access to their keys, they lose sole access to their funds" does not mean waiving your legal rights for redress if your funds get taken (though it might be difficult to find the culprit), just as being aware of all the risks involved by drunkenly waving around a bag with gold coins in a seedy alley does not mean waiving your rights for redress if these coins get taken.