Bitcoin is a protocol for talking about imaginary things. It has to do with free speech. Be careful about introducing dirt dauber (government) terms like "legally" into the discussion. Next thing you know they be taxing your speech. Oops - too late...

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Until laws cease to exist we will be dealing with them, and then when they don’t exist we will simply have new laws created by different people. The strength of bitcoin is that its ledger, monetary policy, and issuance exist beyond the control of them. People, not so much. So people must contend with legalities where they live. Storing your wealth in bitcoin gives you the best chance of securing it from control and seizure by outside parties. People wish to confer that same immutability onto ownership of real world physical objects via use of NFTs. But the big problems with that are that 1) NFTs merely represent the thing, whereas bitcoin is the money, 2) no other blockchain is immutable, and 3) and no government is obligated to recognize said blockchain as superior to its own local laws.