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next step: we need a central authority to control funds and reverse transactions
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True bitcoiners are against central authorities. You are straw manning this dude. There are MANY ways to handle theft in a free society. Central authority is not one of them.
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well you will need to id people to be able to handle it then
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Disagree. He should return it. Bitcoin is a tool, it does not supersede natural law of DO NOT STEAL. Simplest example: if you find a wallet on the ground you should return it to its rightful owner. This should be true regardless of bitcoin or fiat.