According to a recent bill's draft:
"India has proposed a jail term of one to ten years for those who mine, hold or sell cryptocurrencies."
I was wondering how someone could say that 'A' is holding 'X' amount of bitcoins in his address 'Y'.
What if the person generated the wallet and learned the passphrase leaving behind no physical evidence of the ownership of the address. At that point, it would just be an address with a balance on the blockchain ledger.
Or if he just made the backup of private keys on a paper and destroyed it upon inspection (having a backup somewhere else). How is the government going to track down who's holding at what address? That's just stupid.
Similarly, they can't impose a ban on mining as it is just a computer software and blockchain protocol cannot be blocked by the government.
What do you think? Would the govt. be able to catch someone who violates this?
According to specification of Bitcoin, Bitcoins are a peer to peer based decentralized tokens which can be held and transact electronically only. Along with this specification bitcoins transactions are completed and stored on Blockchain with SHA256 algorithm, which requires higher electric power.
In such scenario no one have control over production and distribution of Bitcoins, so currupt government with lack of knowledge and lack of willing to accept change along with fear are taking such wrong steps of banning.
Actually no government have rights to make laws and bills on things which they cannot control, distribute, produce or monitor.
