Nick Szabo Warns: Bitcoin Is Not Safe From Legal Pressure

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 17, 2025

Key Takeaways

Nick Szabo warns that Bitcoin, despite minimizing trust, can still face legal pressure from governments and large institutions;
Szabo said regulators could target miners, node operators, and wallet services, especially if forced to remove or alter "arbitrary data";
Chris Seedor argued Bitcoin’s technical design limits control and has protected similar tools like Tor and PGP.

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Nick Szabo, a figure in Bitcoin's early development, recently shared his thoughts on the blockchain's vulnerability to legal interference.

While Bitcoin BTC $93,961.02 is often praised for reducing the need for trust, Szabo pointed out that it is not completely immune to outside control, especially from governments or large institutions.

In a post on X, Szabo argued that every blockchain, including Bitcoin, can be affected by laws and regulations. He believes it is unrealistic to think Bitcoin can function as an all-powerful tool that resists all legal threats.

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He went on to explain that legal systems could coordinate actions against certain parts of the Bitcoin ecosystem. These could include mining companies, network node operators, or services that manage Bitcoin wallets.

Szabo’s main concern seems to be about "arbitrary data", unusual or unwanted information that can be added to the blockchain. If governments demanded that this kind of data be removed or altered, network participants might be forced to act contrary to Bitcoin's core principles.

However, Chris Seedor argued that these legal threats are being overstated. He believes Bitcoin’s strength lies in its technical design, which makes it hard to control or shut down.

Seedor noted that if governments truly had the power to block technology they did not like, other tools like Tor or PGP would have been shut down long ago.

Recently, Elon Musk has shared his view that Bitcoin offers protection against inflation, especially during times when governments may print more money to fund major projects. How? Read the full story.