Bitcoin's Confiscation Resistance

One of Bitcoin's fixed properties is its confiscation resistance. Confiscation resistance means the ability to retain control of one's assets even in the face of forced interference by third parties, such as individuals, governments, or financial institutions.

Ownership of Bitcoin depends on access to a private key — a unique cryptographic key that acts like a password. If the private key is well-protected, Bitcoin cannot be forcibly confiscated. For example, if the private key or seed phrase is memorised by its owner, and their wallet devices destroyed, the only way to access the bitcoin would be if the owner chose to share this information.

This contrasts sharply with other assets like gold, cash, or bank balances. Gold or cash can be physically taken when found, and bank balances can be reassigned by the financial institutions that hold them. Bitcoin, on the other hand, is protected by the cryptography of its protocol, making it fundamentally resistant to confiscation. The level of confiscation resistance an individual then has ultimately depends on their ability to protect their private key from outside access.