A recent Tweet by Samson Mow (@Excellion) suggested that Coinbase isn’t a safe place to store Bitcoin. Specifically, Mow suggested that the company would be the first to comply with a 1933-style confiscation demand by the federal government.Mow’s comment regarding Coinbase reflects the distinctions between early and late adopters. Early Bitcoin faithful were strong supporters of independence and separation from institutional controls. Later Bitcoin participants have largely adopted institutional-style systems from exchanges like Coinbase. The most recent news that Coinbase would allow the IRS and DEA to use their blockchain surveillance software has caused an uproar. Mow told BeInCrypto:
The comments by Mow reflect the deep division that exists in the Bitcoin community. Coinbase has consistently caused public uproar with inopportune service outages and privacy violations. At the same time, the company continues to consolidate its position as a strong influencer in the space. The recent acquisition of cryptocurrency brokerage Tagomi completed the company’s institutional service platform.
Coinbase has consistently been one of the worst actors in this space, either intentionally or through incompetence…now they want to sell their blockchain surveillance software to the DEA and IRS. With many people storing their bitcoin on exchanges like Coinbase, which could have nearly 1 million coins, that puts a lot of bitcoin at risk of confiscation by a 6102-type executive order.
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