> What if there was a way to tag bitcoins as stolen and declare them null and void? Would this not disincentivize thieves?
It would both disincentivize thieves and honest users.
It was decided in a legal case over 300 years ago in Scotland that it would ruin the point of money if stolen money were - like all other goods - the property of their original owner: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2260952
I think it makes sense to apply the same principle to bitcoins.
It would both disincentivize thieves and honest users.
It was decided in a legal case over 300 years ago in Scotland that it would ruin the point of money if stolen money were - like all other goods - the property of their original owner: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2260952
I think it makes sense to apply the same principle to bitcoins.