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I'm not sure it's legal so much as it's prone to double spends. If I sell you a piece of paper with 12 words on it, you have know way of knowing if I have those 12 words stored elsewhere or already used them to sign a tx spending the sats elsewhere.
Yeah, that's a trust component. But they already sell scratchy card for prepaid stuff everywhere. I don't see where the difference would be
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There isn't any.
I think it's just easier - relative to trad stuff - to do this kind of thing trustlessly with bitcoin so we all bias toward doing it that way. Bitcoin ATMs give you the same level of convenience of scratchy cards without the trust.
I imagine we might eventually have people that sell scratchy card like things if that's what people want. I mean that's what Casascius coins were.
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Also Azteco sells vouchers.
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