Topic: Disadvantage of bitcoin (Read 701 times)

Banks are different from Bitcoin; Bitcoin is decentralized; we are in control of our assets; so if there is a problem with the transaction we made with Bitcoin, it is due to our negligence. Who holds and knows the private key, seed phrase, and password?

And the bank is under government regulation, and what you mentioned is also correct; you can still recover your account from the bank, but that depends on whether you can provide the exact requirements that they will ask of you, as if they don't want you to recover yet. The money you entrusted to them will make it difficult to get it out, unlike when you only put money in them for a while when you started opening an account with them.

You should speak for yourself if you like the traditional banks but many people prefer bitcoin, the things you get to do with bitcoin, you will not get it from the bank. I will not deny that I use bank as well but do I like it than bitcoin, no even despite the fact that it's challenging to use it fastly like the way other centralized payment systems are super fast, they don't have decentralization like bitcoin, you don't get freedom like bitcoin because everything is highly censored.

When you create a wallet, the first thing it reminds you is to keep it safe and a warning that will make sure you back it even before you send any coin into it, is that hard to do really do? If you say you like decentralized and you can't back up your seed phrase and keep it safe, then there is nothing to do with bitcoin in the first place.
I hope also you know that having money in with the banks is not a guarantee, you can lose it all as well even when you think you are covered by central bank insurance. The insured money might not be able to cover up for all of the customers if something goes wrong.

Let's just say with traditional banks, our money are also their money so they have to safeguard it 24/7 but with bitcoin, we are entitled to secure the own safety of our coins, and that gives us bigger responsibility to safeguard our finances. While bitcoin may be prone to hacks or scams, but it's never a disadvantage of bitcoin but a lack of responsibility of the owner itself. Bitcoin is giving us the freedom not to rely on banks and other third parties, therefore it's giving us the full freedom to control the safety of our own bank.

However, when it comes to the volatility nature of bitcoin, it could be a disadvantage on the eyes of centralized government, but unknowingly this is the best asset of bitcoin that enable us to achieve financial independence when bitcoin hits a new significant all time high price.

Maybe some will probably gonna prefer banks other than Bitcoin or how we store Bitcoin is decentralized, it is obviously better compared to banks since we have full control of our investments unlike banks which already happened to me personally, banks can freeze your account, and if they do that you just cant do anything about it. It's probably going to happen if you have large transactions from cryptocurrency to banks so i dont really recommend cashing out large amounts of money on your banks since they might get suspicious about it where you get that money and end up freezing your account.

Still there are still people that is going to prefer banks instead of cryptocurrency or Bitcoin since it is still a new thing for a lot of people, probably like your mother and father they are going to pick banks since for them it is a legitimate platform other than Bitcoin or cryptocurrency which is already link to a lot of hacks and scam online.

That's true that Bank can help those user who lose their access on his bank account or he forgot his password. In case he have to provide those document of him. But it is not true that people do not lose money from the bank. In the traditional banking sector by frauding people's checks and then in the current online banking sector through hacking or various scams, their money is being removed from people. Moreover, in many cases it is seen that various banks cheat their users and run away with money. I think that if we can't use each thing properly, it's not the thing's fault, it's our own fault

Banks can help you if you lose access to a bank account. In that case, you can regain your bank account access by resubmitting all the documents you provided while opening the bank account, but in that case it may take several days. But it's different with Bitcoin if you lose access to your Bitcoin wallet you have to help yourself. If you lose your pocket money, is it the pocket's fault? Never it's your own fault you couldn't keep your money in custody. Your Bitcoin wallet is independent to you where Bitcoin is independent. If you do not retain the sovereignty of freedom, you are subject to yourself. In this case, there is no problem with Bitcoin, the problem is you.

Yeah, that's what I just think of whenever people start talking about the disadvantage of Bitcoin because the world itself is all about good and bad and I believe everything has the both feature as inbuilt so no good project is excluded, so it's now boiled down on how you can limit the disadvantage yourself and enjoy more of the advantages of the project. I believe this technique of separating your asset is not a bad one because your wallet used for saving won't be all that active to avoid anything that would affect you in your long term investment.

I have been in this situation as I have lost the private key and 12 word recovery phrase of my blockchain wallet which I used in 2015 and even while I type this post I tried twice with familiar password but didn't get lucky. It feels disgusting and frustrating. It's sad that we cannot recover the password, thi is definitely one of the biggest drawback but we have to accept it and have a proper backup and it's my mistake that I didn't take things seriously back then as Bitcoin was just $400 or $250 back then. This will act as a negative point if we are careless and if we have this back up it just adds up to layer of security and it's upto us how we take it.

When we talk about the security of the assets, it's the the place where they are kept which should be questioned if the assets are compromised and not the asset itself. Whether it's a bank, or a wallet, where you money is kept, you should blame the party that is holding those funds for you if they get compromised, so in the case of a bank, it's them who are responsible if your money is stolen, and when it comes to Bitcoin and cryptocurrencies, it's you who is responsible because you are the one who is keeping those assets without giving any access to a third-party.

So, when it comes to security, it's not a disadvantage of Bitcoin if our assets aren't secure because it's our responsibility to do that. We are the ones who should choose the best place to keep our assets and keep our seed phrases and private keys somewhere safe and unreachable for anyone else.

When it comes to digital goods like Bitcoin, security isnt just about technology; its also about how people behave. Sure, hardware wallets are great, but what about our digital footprints? Its ironic, right? We lock our coins away in digital vaults, yet some of us broadcast our wealth on social media. What a strange security situation! And the people who try to steal our information are like digital ninjas - they're always coming up with new ways to get in.

We should take care of our online cleanliness the same way we take care of our physical health. "Check-ups" and maybe even a "digital diet" to help people stop sharing too much. Being careful isnt enough; you also need to be aware. What do you think about backups?  Its like having a savings account for emergencies, but for digital goods. Bitcoin is valuable not only because of its price, but also because of how we treat it and keep it safe.

How's it the safest when our money can go missing and we don't have anything to do with that, atleast if our money get missing in Bitcoin is because of our fault but the banks gets hacked/bankrupt without we having anything to do with it and they won't reimburse us. The image you shared is only remembering us that we're our own banks with Bitcoin unlike the traditional banks that are centralized and our fund can be frozen without our consent. Bitcoin puts the power of control in your hands so you're to protect your funds very well. If you do things rightly you won't be in the situation that the image is talking about. Don't exposed your private key online and keep your Bitcoin in a cold wallet and secure your sensitive information securely and you want have any regrets.

Everything has its disadvantages but don't take the power to be in control of your own finance as a disadvantage. We don't have to be careless and expect the centralized system to save us. I know we're used to others taking responsibility for our well-being but as we want to be in control, we have to leave them and look after our assets ourselves. Always back up your private keys and seed phrase. Also you can go extra miles by not putting all your eggs in one basket. Separate your coins in different wallet so that if you'll need fund frequently, keep it separate from those you'll need to hodl for a longer term, doing this will make sure the wallet is always offline and don't get compromised.

This is a favorite quote from well-known movie called Spider-Man: With great power there must also come great responsibility. Bitcoin gives you that great power, to be your own bank with the ability to send or receive bitcoin without relying on 3rd parties while improving your privacy compared to traditional payment systems and with proper methods you are able to significantly improve your privacy. It's not a disadvantage of bitcoin that people aren't able to carry responsibility on their shoulders.

That's so damn right, people have double standards. At first they were afraid of banks controlling their money, then there we got Bitcoin but people are afraid, no, I would say, they are incapable to be responsibly of being their own bank. Banks are responsible and they use that responsibility as an advantage to control people's money.

Nothing is perfect, so we cannot claim bitcoin to be 100% perfect. For me, I don't see it as a disadvantage because that is the nature of decentralization, if we want full control over our assets then we have to do everything ourselves. If we expected bitcoin to have a password or seed phrase recovery function then it would no longer be decentralized. This is the characteristic of decentralization and the difference between decentralization and centralization. We need to accept it, get used to it and have the safest storage options for ourselves.

This is not a disadvantage, it is a risk in a choice. Because if you never lose access to your wallet, then you won't experience that disadvantage. The disadvantages should be something you have experienced since you made that decision.

Your wallet password only encrypts your wallet file locally, it is good to set a strong password so as to slow down or stop a physical attacker from having access to your wallet. But take note that with your seed phrase an attacker can import your wallet in their own device and spend the funds, without needing your seed phrase.
Your wallet stores your wallets secrets locally, what you have to do is make a back up of your seed phrase on paper and keep it in different locations, it is easy to do and everything must be done in a safe enviroment.

The only way I understand that you can lose your bitcoin is when you don't understand how to secure your wallet for you to secure your wallet you have to understand one or things here, so therefore bitcoin investment is something you suppose to know that all accessibility is dependable on what you have or achieved in bitcoin, so I believe that investment is an investment and you losing your bitcoin in your wallet is an result exposing your wallet seed phrase because its a seed phrase exposure will make people to enters into our wallet

I tend to agree with the bolded part above.
That is why from the start, we should weigh the disadvantages and advantages of Bitcoin and once we're aware of it accept whatever consequences will happen in the future.

Everything has disadvantages, even putting your money in the bank and thinking it's safer than having Bitcoin.  But no, the disadvantage would still be there.  Right, it's your responsibility to protect them, and don't rely upon any third party like the bank if you want to have full control your of your money.

In my opinion, the system that Bitcoin wallets have is the best, just like the physical wallet that you have, if you lose it it will be difficult to find it again, the sentence "make sure you back up your wallet" is actually quite clear in explaining that you are Sir for the money you have, don't carelessly save the passwords and private keys you have. If you are lazy about storing your Bitcoin wallet's private key in a hardware or software wallet, then save it as a paper wallet and then store it in a safe that is not accessible to thieves and hackers.

You don't have to back up your wallet address, what you should make backups of is your seed phrase, with your seed phrase you can restore all your keys and addresses, so back up your seed phrase in more than one location.
If you lose your keys or seed phrase, you are going to lose your funds. This isn't a disadvantage of BTC, back up your seed phrase and do not expose it, your keys is what ensures you are in control of the funds and you can spend it whenever you want.

It cannot be denied that this is a fairly high risk, not only for Bitcoin but also for altcoins. In this case, we actually really need to be careful and precise in storing and securing our important data. Actually, not only Bitcoin, banks and others also certainly have their own risks.

However, regarding our keys to accessing Bitcoin, this is something that we must pay close attention to and carefully. This is not only related to where we store it, we should store it in a hardware wallet. And what's more, it is also related to privacy so that our assets can be better protected. There are several people who like to update their status or inform about their various assets on their social media. This is very sad, because this can actually be dangerous.

On the other hand, sometimes there are also many scammers who use various tricks to gain access or our important data in ways that are sometimes normal or that we are not aware of. For this reason, we must be careful in selecting and sorting the information that comes to us, links sent to our email, and various other ways that might endanger our assets. Bitcoin is a very valuable digital asset, because we also have to be able to optimally make it as safe as possible. Losing access to our wallet and not having a backup at all is a disaster for us. So, we really need to be very careful and safe when storing it.