Topic: Disadvantage of bitcoin - page 2. (Read 701 times)

From the beginning most of us have said that bitcoin is not really for everyone, and if people cannot deal with being their own banks then there is no shame on using traditional banks as that is the main reason why they were created on the first place centuries ago, however it is true there are many people that thought they could deal with it and they are realizing this is not the case by losing their coins, but there is nothing we can do about it except to keep reminding people about securing their coins over and over again.

For all the while u have never seen the disadvantages of Bitcoin as ling as you have theborior information about the asset before holding because i dont see where freedom have become a disadvantage before,  so for that am sure that Bitcoin is properly handled can lead to the most secured free and decentralized personal bank that is free of tax unless at the point of payment for goods via the value added tax.


But anything outside that, will amount to a total personal responsibility and risk taking, so Bitcoin cant be compared to the bank because banks are third-party government-controlled centralized financial institutions, while Bitcoin is a self-custodial bank so no one will protect your wallet except you and the way you handle your Bitcoin is your soul responsibility.


So there is no way to compare the whole or total or call in any form of disadvantages to Bitcoin viayourr loss of access which is your sole responsibility.

I think this is the most strength side of of Bitcoin not a disadvantage. I believe in it that "not your keys not your fund" or what ever you say. In that case, if you are talking about banking system or any centralized changer, the password you have there is not only a means to control your account.  Due to being centralized, your account may be frozen or any other trouble by the bank or any centralized exchange at any time. Moreover, there are many news that many banks have properly deposited money from their users but due to bank bankruptcy, those users have lost their funds. I have some of my own relatives who have deposited money in banks with the lure of slightly higher APR, and then gone bankrupt.
So after considering all this only one thing comes to my mind that there is nothing good about decentralized system where only I own my funds, here the key is mine and my funds are mine. But if we can't use this system properly due to ignorance, I mean we can't keep those keys properly safe, it's totally our fault. So It makes no sense to call it a disadvantage.

I think in a way you're comparing a bit of an apples and oranges situation.  First off, it's not necessarily true that once you send money out it's lost..there are ways of recovering wallets ( in rare circumstances ).

However "with great power, comes great responsibility".  Meaning you've got a decentralized asset that has many advantages over traditional fiat money /banks...but you're of course having to take on a bit more responsibility which I don't think is necessarily a bad thing.  Teaches people the value of being safe/secure...properly backing things up etc.

   Fact is many people are still unaware of digital currencies and Bitcoin. People need to be educated about Bitcoin to be able to apply it to their lives. Networking is a must to spread the word on Bitcoin. Businesses are accepting bitcoins because of the advantages, but the list is relatively small compared to physical currencies. The workers need to be educated on Bitcoin so that they can help the customers. This will definitely take some time and effort. Otherwise, what is the benefit of such large companies accepting Bitcoin if its staff doesn’t even know what digital currencies are?
   Due to the fact that Bitcoin transactions cannot be reversed, do not carry with them personal information, and are secure, merchants are protected from potential losses that might occur from fraud. With Bitcoin, merchants are able to do business where crime rates and fraud rates may be high. This is because it is very hard to cheat or con anyone in Bitcoin due to the public ledger, otherwise known as the block chain. There are always pros and cons to any situation in life. To be able to make a good decision, you need to weigh the good and bad thoroughly before finalizing your choice. Do the same for Bitcoin. Understand what it is, and decide what you want to do with it.

that's not what OP was saying. he was even trying to question what those ads are doing trying to tell the Bitcoin community of the minor disadvantage when in fact it is a feature of BTC.  the question should have been, will this disadvantage be enough for a Bitcoin holder to decide to deposit his BTC to a bank?

i think he understands Bitcoin well and for that, it is a rhetorical question. everyone knows BTC wallet is already a bank itself.
but just for the next question. come to think of it. a bitcoin holder will die and he needs to pass on his coins to his sons and daughters, will he need a bank?

I don't really know what op means by disadvantages of Bitcoin when he doesn't even know how the whole thing works. I am mostly surprised seeing people just writing whatsoever they like a out Bitcoin without critical thinking. For us to make profits from the market if we are true fan of Bitcoin, we need to invest in Bitcoin and promote it by all means nit coming here to write what we like without understanding much about what's Bitcoin stands for. I think op should go and read the Bitcoin white paper for clarification rather than trying to tell us about the disadvantage of Bitcoin.

Traditional banks are still widely believed to be a safe place to keep money because this has become a habit of the community as well as with government guarantees even though I said banks are not a safe place but they do not realize that their money can be held by the bank so that is one of its weaknesses.

There is also bitcoin then it is financial freedom, you can store your own assets as if you consider yourself a bank because you have a key whenever you can access the wallet this is the advantage of decentralization even though you say that bitcoin has its volatility.

Whenever security is most important, private keys must be kept safe, of course copies must also exist, but this is one of the uniqueness of bitcoin that many people like it.

OP, what I know is that the traditional banking system has its own disadvantages, and despite the fact that our money might be safe in the bank, there are still some hackers that can penetrate an individual's account and use the person's money to purchase something online. Bitcoin might have those things you think are disadvantages, but that is how other systems have them too. Bitcoiners and some newbies should always know that their Bitcoin wallet is like their bag where their treasure is, so they must learn to take every necessary precaution that helps to protect their asset from being stolen or that will not lead to the loss of their secret phrase.

I'm aware of the points you're trying to drive home but cryptography and the concept of keys is one of the primitives of Blockchain and crypto. Right now, the only way we can correctly identify users is via transactions and messages signed by their keys. If other ways are introduced like email, password, etc recovery then it introduces more risks to that wallet/account.

Off-topic but ethereum is currently creating a solution for this called account abstraction. I haven't actually tested it myself.

I guess that is the "disadvantage" we have to live with if we want to be our own bank. the thing is, no one is forcing anyone to invest in Bitcoin and be their own bank, anyone who wants to invest in Bitcoin need to know all the risk that they are taking and be prepared for what can happen.

I for one understand the risk of losing my coins if I lose access to my wallets, if anyone is not up for that they can simply just avoid Bitcoin.

I can only agree with Andreas Antonopoulos on this as he once answered a question about the lack of options to recover lost coins and his answer was that this is not a bug or a weakness, but a feature within the Bitcoin protocol. You can still choose to store your Bitcoin in a locker in a financial institution or choose a bank that obtained the license to offer custodial services for Bitcoin, but this remains your free choice. Those who deliberately maximize the utility of Bitcoin's decentralized nature either do it because they are lazy and then might not have put their own recovery tools in place and lose their Bitcoin wealth in case of an emergency, or they are not lazy and take control over their Bitcoin wealth to unprecedented levels. Nobody can touch it ever, which obviously implies that nobody should be able to recover coins except for yourself and those who you chose to be in that position, too.

I think this is never a disadvantage for Bitcoin. A key advantage of blockchain technology and cryptocurrencies is that it is really hard to hack or manipulate the decentralized, secure peer to peer network. Not having access to your Private Key is your responsibility and you can't blame Bitcoin for that. If you lose your identity, you can't do banking transactions either. It's the same thing. Keeping an asset safe should be your responsibility, except in the case of natural disasters. For this reason alone, it is wrong to position Bitcoin at a disadvantage compared to the banking system. If you diversify your hedges against risks, you won't need a bank and you can understand Bitcoin better. Finally, the most obvious threats to security issues do not come from blockchain technology or cryptocurrencies like Bitcoin, but from the places where we transact with them.

Bottom line, every investor in bitcoins should know the risk involved and also the risk with self-custody. Asides the threat and chances of getting your bitcoins taken by scammers and thieves online, it can also be lost to a silly mistake you can just make. There is no care number you can call if you lose your bitcoins, and in examples where you lose access to your wallet, or send to a wrong address, your attempt to try to get it back, and you thinking you are getting help from well-meaning people will only get you scammed more. It will be painful to lose bitcoins to scammers, it will be more painful to lose it to your own mistakes.

Only disadvantage is having less BTC

It's a fact, you lose your coins when you lose your wallet access. Isn't that an advantage? No one can access your account even you if you lose your secret key.
You be your own bank with Bitcoin and it comes with some drawbacks too, try considering it as a positive. I feel like it's an advantage over Banks in general with Bitcoin.

As I understand it, what Nwada001 wants to say is, if we are careful in everything from backing up passwords as well as securing bank accounts and bitcoin wallets. It is very unlikely that we will forget our password or lose access. Like me , I know that forgetting my password will make me spend a lot of time going to the bank to ask them to reissue a new password. So I'm always careful with those important data and never forget it. Likewise, we all know that if we lose the seed phrase, we will lose all our bitcoins. We are aware of its importance, I don't think anyone would be so negligent as to lose or forget it. We should be responsible for ourselves instead of relying on others when it is our property.

Cryptocurrencies are becoming increasingly popular and transactions are increasingly becoming digital. Btw, keeping our password secure is also very important if it doesn't result in losing all the bitcoin money you have.

It has a definite influence, If users actively exchange their currency for bitcoin if I see that's probably where it's headed. If not, I think this will have no impact or be detrimental to the bank. The bank only needs customer funds to enter their institution, even if only for 1 minute as a report that there is a round of money entering their institution and it is recorded.

The same disadvantage with your car (or a key to it), real estate (or a key), banknotes, jewelry, digital signatures/authorizations etc. You could either keep them safe yourself or entrust them to somebody else (e.g. banks).

If anybody thinks that they can't trust themselves enough then they may be correct and trusting a stranger (a bank) is not a solution.

To be honest for me I don't think it's even a disadvantages, I believe either people who has good amount of funds that is worth extra backup of their private key, and they store it ultra securely, or people who only save small amount of bitcoin that even if they lost access to the wallet. On the other if someone could help us get into our account when we lost the access, it also mean that those people might also be able to give access to stranger who never actually has access to our fund, even the slightest chance it's still a risk.