How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?
Government can find you through an
exchange.
He can find you through an
kyc from an airdrop, ico, etc.
Unless you are very careful, you can be tracked.I agree with you, because we send our i.d's and our information , then they will know where we live. But if the government dont have access to the file that the ico's and airdrops has then you dont have to be afraid, they cant tracked you and they dont know that you have bitcoin.