How exactly? When you bought on a KYC exchange, the state knows that you bought and have it, then they come to your home and you will give it to them, else you go to jail.
How is that hard to confiscate for an entity with an monopoly on violence?
Discussion
What if you lost your seed? What are they going to do and how would they know? They can’t do much.
Likely you spend a couple weeks in jail, maybe get out and as soon as you move it, you go to jail again. Whats the difference between funds you can not move or funds you do not have?
I think when we get to this point, have any sort of money won’t even matter much.
Especially at this point, you need money to GTFO. In that situation, i rather have some money they dont know i have, can not censor and can not trace.
That will be either Monero - or a private version of BTC if it will ever exist.