So each Bitcoin in the Eco-system today isn't equal. Some Bitcoins were used in a crime , and if they were , they can be worth less because of the transactions that have been facilitated with that specific Bitcoin. And if there was a crime that happened 20 transactions ago , and you now have that specific Bitcoin , can you be indicted for a crime that someone else has committed but you are holding the Bitcoin that is associated with it?
If this is the case , how can we consider at this point , BTC as a store of value?
Mere possession of stolen goods doesn't instantly make you a criminal as well, yes the authorities have the right to confiscate it but you as an unaware owner of a stolen Bitcoin doesn't make you a criminal as well, it doesn't even make you an accessory to the crime itself. As long as you aren't directly associate or involved with the crime you won't face a criminal charge about it.
It's like both of us holding 1KG bar of gold , but mine is worth less than yours but the market agrees to buy BTC at a certain price...
If this is the also the case , doesn't that mean that the demand for virgin Bitcoins more valuable than the other BTC out in circulation and thus , the circulating supply should be different...? How much crime has been associated with the circulating BTC in circulation? and if the "legal" Bitcoin that has been circulated are the only ones that are valuable , then how much would BTC be actually worth?
Unfortunately we don't have that kind of convenience of system lying around where we can separate "clean" Bitcoins from the "dirty" ones all we see is the amount of BTC we can send and receive. Honestly you really don't have to worry about this one especially if you don't transact to suspicious individuals trying to send or sell you BTC. For businesses however will be a different case for them as they can't really choose who will be buying from them that is why they are very conservative when it comes to accepting crypto in their services.