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Given that the main difference I’m pointing out is about whether the instigator benefits, I think your example makes my point exactly: either way you are out of your coins, but it adds insult to injury if someone else undeservedly gains them.
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You are very correct to point out that there is a distinction between confiscating and burning the coins; however, I don't think that changes any of my arguments.
But I will say this: if I confiscate or burn your shoes, you will end up barefoot in the same way.