Many places including the US "confiscate" untouched bank funds as part of a common law process which allows people to recover money from accounts which they are no longer able to access. If you're referring to Cyrpus, only people with more than 100k euros in cash had money taxed, and even then the tax rate was only 47.5% - much lower than the losses many people experience while holding money in crypto.
“Oh so that’s ok then!”. You are feeding into my point.
I get what you are trying to say, but I counter it by saying the same amount of Bitcoin sats are associated with the same address it was sent to. No haircuts, no confiscation.
Check history. I think you will find folks that bought BTC to avoid a Cyrus haircut are quite happy today. Nb: I was only tangentially referring to Cyprus. I am from another place.
