Is packet radio allowed to be encrypted?

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Allowed is a strong word. And no. Not by amatuers.

Well I say allowed because if you break the rules you lose the license

You can't operate ham without a license, I mean they'll come after you pretty quickly for using the frequencies without a call sign.

is that something that can be enforced in any meaningful way?

Triangulation of your signal would be the enforcement mechanism.

They can't even stop cocain coming in through their own mail service. How are they going to stop math being transported over waves of light?

If you transmit without a call sign, expect same-day service for them them to come find you. Same thing for encrypted packet radio. War driving is a sport, Hams will do it for free to help out law enforcement, lol.

That said there's no harm in transmitting bitcoin transactions maybe? As long as it's not for commercial purposes

But sending transactions with your call sign attached is as public as posting them to Facebook

Maybe... They are small and short in duration and Unencrypted. Just a public qso by licensed amateurs. I don't see a problem. It should be ok..👍

Absolutely not, unfortunately

Uhmm... Why are people still asking permission from the government to use math.

Go ahead give it a shot let's see what comes next for you. Keep us posted please.

Nothing will happen, unless the signal causes interference and someone reports it, or is broadcast on bandspace allocated to some people who really don't want you on it.

I recommend you learn more about HAM before commenting further👇

https://www.arrl.org/

https://www.arrl.org/licensing-education-training

I recommend you stop simping to authority.

Did all of that decades ago.

How will your neo-stasi masters know the difference between a some cypher and a jpeg?