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Welcome to Libertopia. If the government can't tax a property, then the government can't protect it either. There is a reason why we invented and continue to use this whole coercive government thing...
Of course this is one of the risks. It's balanced by the alleged rewards.

Think of it as cash - you can store your $500k worth of savings in a jar under your mattress and shop completely anonymously, but the risk is that someone will come into your house and take it.