Topic: Disadvantage of bitcoin - page 3. (Read 701 times)

I get that you're not totally on board with Bitcoin yet, Obari.  And hey, I don't blame you.  The banks we've got now seem pretty safe for keeping your cash, right? But if you look closer youll see the system is far from perfect.  There's risks we just accept as normal.  Bitcoin's about fixing those and  its about freedom from all the control and restrictions regular banks have over our money.  Sure, Bitcoin's decentralized - a straight-up revolution.  But revolutions happen for a reason.  Maybe you should open your mind to why this one's happening.  The old system's got flaws.  Bitcoin aims to fix em.  Look into it some more.  You might just get it.

Both Bitcoin wallets and bank accounts need adequate security because any mistake could lead to loss of funds. OP is not concerned about losing your funds to hackers or scammers but his focus is not having access to your wallet because of loss of password or seed phrase. He is more concerned with having an option to retrieve passwords which conventional banks offer.


Just as you have the option of keeping your money in a home safe with a password and bearing all the risk of keeping and protecting it or keeping it with a bank where someone will take care of it on your behalf, this is how the Bitcoin space is. You can decide to be your bank and take care of your funds or keep it in a centralized platform where you have the option of getting back your money even if you lose access to it. But we should also take note that our choices have consequences. But it is better to have control of your funds because history has taught us that third parties are not trustworthy.

I must say that the above mentioned investors in Bitcoin wasn't just all that but also the enjoyment of the coins decentralization.
However, the stated disadvantage of Bitcoin is not worth alarming at when compared to the fiats.
Think about how the potentiality of Bitcoin beats global inflations but the fiats are answerable to the global inflations.
However, if considering loosing ones private keys to its Bitcoin wallet access as a disadvantage, then it is proportional to fiat bank account holder looses its private details such as mismatched signature and inability to provide personal documents for verifications and identifications as security access.
Else one is denied every trial from its own bank account just as a Bitcoinare unable to provide or identify its security keys. Though, that of fiat is minimal to Bitcoin otherwise this alone does give the fiats more advantages to Bitcoin in the societies of financial exchanges.

If someone loses the coin due to the wallet, then it’s completely his fault. Why Bitcoins are be made responsible here? You as a Bitcoin investor, your huge responsibility is to choose the best wallet and make sure you keep the wallet id, seed etc safe. So if you lose the private keys then it only shows you are irresponsible. The people who think this as an disadvantage, don’t deserve to own Bitcoins. This is just a lame excuse to transfer the fault on Bitcoin’s head.

Bitcoin has proven in so many ways to be much better than the local banking system, but sometimes we shouldn't neglect the fact that it still have its own disadvantages. the banking system had existed far long even before Bitcoin or the Blockchain was invented. the early men had deviced various ways to store their money and at that time, storing money in commercial banks was considered the best method. sooner or later, men noticed that the banks no longer favored them since they were only after the interest they make from loaning out peoples savings and not giving back interest to the owners of the funds.

with the invention of Bitcoin, you can now chose to be your own bank holding the access to your funds. the idea is to keep your keys safe and in a place where you can access them if needed.

banks having access to your funds might be the biggest mistake you've made so far. they make profits of your savings, or defraud you of your money. so you should choose a smarter way to store your funds. a lot of persons loosing their Bitcoin might be out of ignorance, forgetting the fact that your keys is the most vital aspect of your Bitcoin holding.

Maybe it’s not a cause for concern to you but it think it ought to be a cause for concern and I also understand the fact that misplacement of key is a careless act that shouldn’t be considered especially for those that already know the implications of misplacing keys but what about the early adopters who never knew bitcoin would rise to this very height and couldn’t get anymore access to their funds and I think outside backing up your seed phrase or writing it down, I think getting other options of getting access to one’s funds in times like this wouldn’t be a bad idea.


Exactly, no one plans to die young or premature, so what if in cases where one dies let’s say in an accident and never disclosed his seedphrase to his family which simply means the holder dies with all his holdings and it wouldn’t be a bad idea if there are other possible ways to get access to the funds.

Of course, we can't call that an advantage, it's advantageous but everyone should understand the risk before taking it, especially when it's self-custody. This could be guarded against and Bitcoin will not steal your money, it's you who is careless about it if lost. There's also an alternative for careless people, they can simply use the custodial wallet, the alternative that harbours the risk of ownership.

Besides, the worst of the disadvantage is when someone dies and his crypto assets got lost with him.

With the constant reminder of many bitcoin users, I am sure that there's no way that we will ever forget about having back ups on our wallets too many stories of lost bitcoins due to forgetting their wallet's password to having their funds stolen because they stored it in a custodial wallet and with all of those stuff, I don't think that people are forgetting to have back ups for their wallet. I don't even know why people that don't have their own wallets are still using bitcoin, having your own wallet is like part of the experience of using bitcoin so don't waste that experience.

It is a general knowledge in life that anything that has advantage also has a disadvantage, the traditional way of banking has it own disadvantage, where funds of individuals miraculously disappearing without any trace, most times we've had some cases of those nature, even the money save in the bank does not yield any interest, rather they sometimes depreciating because of charges and maintenance fee that the banks deduct.
Of course despite bitcoin volatility, over time you will see your investment yielding profits, it is always advisable that as an investor in Bitcoin you should have your seed phrase always kept somewhere as a secret, so whenever you lose it you can always go ahead to check on it, so you won't lose your investment.

I was amazed to know that someone believe that the security features of Bitcoin which is keeping the passphrase is a disadvantage. Honestly, that is one of the advantages of Bitcoin because you don't need to show your identity, besides the safety of your funds, you and your family are also safe. Which banks can't give that. If you invest in a bank, you will provide many documents, it is similar to CEX. As a result, since there's someone know that you have a lot of money, you can't walk around alone anymore without bodyguard.

Don't use non custodial wallet, when someone find your seed phrase or you lost it, you will lose all of your coins.

Don't use custodial wallet, if the project is exit scam or get hacked, you will lose all of your coins.

Don't use decentralized exchange, the liquidity is very low, you will be forced to sell at discount and can't make a lot profit.

Don't use centralized exchange, you will lose your privacy and there's a chance your coins would be frozen.

The point is, you have a freedom to choose by using Bitcoin and I don't care which one you choose.

I agree with you, if we lose the private key/seed phrase then it's clearly our fault, why consider it a disadvantage of bitcoin when it gives us the key to our assets? Those who think having full control over their assets is a weakness show that they don't have confidence in themselves and are lazy enough to not want to protect their assets.

We also have to admit that preserving Private Key/seed Phrase is not easy, but one thing is certain: our assets will be safer when they are in the bank. Obviously that's an advantage, but why do many people think it's a disadvantage?

Actually, it is those who lose access to their wallets who will lose out because they cannot take care of their wallets. They will lose their Bitcoins, but if they still keep a record of their private keys or something related to them, they can still access the wallet.

If people still stick to traditional systems, it is because they want to avoid the hassle of losing their money. Their money will remain safe in banks, even government banks. They can ask for their money back if something bad happens because the government provides support to their bank.

Meanwhile, if they keep their Bitcoins in a wallet, they have to look after them themselves. They will be their own bank for the Bitcoin they own. Owning Bitcoin is actually learning to be responsible for our assets. Satoshi Nakamoto taught us to be independent in taking care of our Bitcoins. No one knows how many Bitcoins we have in our cold wallet.

It is our Obligation to handle our private keys/wallets and this is nothing to do with Bitcoin and how come that our laziness and stupidity becomes Disadvantage of Bitcoin? actually Bitcoin is helping us to be more responsible and more productive in this way for how we are handling and how we are dealing in caring about our keys.

Sorry but i think you are Mature enough to have your own views in this matter and I know for a fact that Bitcoin being super tight in security brings its more attractions to users.

Like what always said "Not your Key , Not your Bitcoin" this same applies here that " Not saving your Key , Lets you Lose your Bitcoin"

so maybe that is enough to learn how we must keep it safer and how to keep it better.

It is not, absolutely not, I don't know a thing about the monetary policy of the country you from, but over here, people still lose the money they entrusted the banks, other trusted financial institutions to hold for them, and after back and forth dragging, going to court if the amount involved is huge, the person still end up not getting his lost money back, some do get it back if they are lucky by the court standing up for them, but for those who can not afford or know the process involved in court dealings, they end up losing their money with no means of questioning the bank.

My mother inlaw saved a good amount of money in one of our local banks here, for good five years, she never checked, after five years, she decided to go and withdraw the money since she needed it to sort out urgent matters, behold, when she went to the bank, she was told that her account was empty, she was surprised and asked them how did over $300 worth in our local currency she kept in her account disappear, this happened in 2020 and till today, this bank can not explain to my mother inlaw how her money disappeared from her account, and neither has they refunded her..

Unfortunately for her and fortunate for the bank, she's is not entirely educated, and because of this, she doesn't know how to use the law enforcement to threaten the bank to refund her her money.

So, coming back to bitcoin, the possibility of one losing access to his or her wallet through misplacement of the private key or seed phrase is not entirely a disadvantage, for people can lose their money even in traditional banking institutions.

A disadvantage is something that there is no solution to, here in bitcoin, there is a solution to prevent such from happening, and that is, to learn how to keep your wallet information safe and secure, and where you alone can easily access it, if one adhere to this, he or she may never get experience what it feels like to lose bitcoin out of misplaced private keys or seed phrase.

Not sure if this is disadvantage but one thing I know is that the safer your funds is the harder
 it may taken so i trust and believe this bitcoin feature and will always support that concept .not knowing how to
handle your wallet is your problem and not to blame to anyone of everything.

When you say this is OP, is this showing that you are also skeptical of Bitcoin? That's what you want to convey here to the forum members. If you have doubts about Bitcoin, there is no problem. Yes, it is true that there is still risk here because it is a volatile asset.

But in spite of all that this is the condition of Bitcoin, it still remains attractive to the majority of investors who have bought it and even to large companies and companies around the world. Why? That is still due to the usage and its decentralized nature, and this is the truth there.

What disadvantage? No! In fact, keys are advantageous. Why? Because accessing a crypto wallet is unique, it can't be easily hacked. Now, from what you see, it only serves as a reminder to backup your keys because many crypto holders tend to forget their keys, which is their own fault. In short, a crypto wallet gave us a unique and secured key that serves as a password, and it's our responsibility to keep it safe or memorize it. You can't blame the wallet just because you forgot your keys; it's your own fault or the wallet holder's fault for forgetting them. Again, keys from wallets are not a disadvantage; they are an advantage that provides a stronger and unique way of accessing your wallet to protect your assets. If someone blames the key because they forgot it, then they are the problem, not the wallet, because a holder should be more responsible with their things.

First of all, if you lose your keys and can't access your wallet, whose fault is it? Bitcoin or you? If it's your fault, you can't say it's a disadvantage of bitcoin. Everything is proportional to each other, bitcoin gives us privacy, gives us full control over our assets, we need to be more responsible with our assets. So I don't think having full control over your assets is a disadvantage.

But each person has a different way of thinking, if you are not confident in yourself, you can ask for help from a third party, such as a bank. But then you won't have privacy or full control over your assets. The choice is yours, you can't ask for something perfect that can give you absolute privacy and security, but you won't spend too much time and effort to protect it.

If we break this down further, it would be on a case-to-case basis. For example, keeping your money in ETH or USDT-- which are altcoins-- in a cold storage would have been much safer than keeping it in Lebanese pound at a bank in Beirut. At least with, say, USDT it is more or less stable and you have access to it. Whereas, not only was Lebanese pound hitting all-time lows in value, you aren't even allowed to withdraw them. At least this was the situation a year or two ago.

Banks may not have that mint function, but they can also create money out of thin air. They do not have that literal money printer, but they can and are allowed by law to issue credits, thus actually creating money, inflating the monetary supply as a result.


In the same manner that you could also be $5-wrench-attacked, get hacked, lose your backup, or the access to your wallet, and so on. That's why freedom implies responsibility; full freedom, full responsibility.

Yes, your Bitcoin is recorded in the blockchain and no one can take it from there, but your access to it is fully your responsibility. It is nobody else's. You lose it, it's completely lost.