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"one could easily blacklist stolen bitcoins"

Who will create this blacklist?

"I guess you can't have anonymity and accountability..."

Actually, you can:

http://link.springer.com/chapter/10.1007%2F0-387-34799-2_25



One possible group would be a consortium of parties that are interesting to transact with. Say Paypal decided to mess around, they might have a blacklist.

People that received tainted coins could repudiate them with high fee transactions to invalid addresses (so that most of the coins go back into the network as mining fees). I guess 'invalid address' is the wrong language, but you get the idea, an address with no private key.


Bitcoin was supposed to help fix problems like PayPal holding payments. This seems to make bitcoin vulnerable to it.




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