Topic: Few cons to be aware of before going into Bitcoin (Read 308 times)

Compared to the positives of Bitcoin and the smoothness and huge revolution it has achieved in the financial system, I consider all these negatives to be essentially nothing, and anyone may be able to overcome them and may find them to be positives. However, some may classify them as negatives that may flaw Bitcoin.

If the transaction is confirmed, it is irreversible, as you mentioned. If anyone can retract the transaction after confirmation, this will increase the fraud rate, making people refrain from using Bitcoin as a secure payment method. Also, whoever knows the Bitcoin system and basics can avoid any mistakes when sending a financial transaction and will know that his private key and seed phrase are the most important things that must be secured and kept in a safe place after creating the wallet.

As for price volatility, it can be an advantage for traders and can be exploited to achieve good profits, but the person must be able to predict trends and utilize technical and fundamental analysis, along with proper capital management, and never forget the advice "Invest what can afford to lose."

When Bitcoin transactions have confirmation, it tends to be irreversible, but if the transaction is yet to be confirmed, there is a chance of reversing the transaction or transferring to wallet different from the one you initially sent to.


Lack of government regulations is not a disadvantage to bitcoin, it is an advantage so that the aim of having financial freedom, because if government is involved, the bitcoin price will be affected and the government regulations will hinder bitcoin’s success.




We are working generally on global adoption of Bitcoin through sharing good news about Bitcoin in our local communities because lack of global adoption is actually a disadvantage.

I agree with the other points, but for the irreversible, I think all money or wealth transaction is basically irreversible, so I wouldn't list it as one of the con since the other 'competitor' do the same. Other thing is about the government regulation, it's good and bad at the same time, I think some people prefer that Government doesn't do much regulation on Bitcoin, just like how people doesn't like Bitcoin ETF that much. I also would prefer if government would just legalize Bitcoin or just allow people to use it without involving much in how it is being transacted, but I guess that's just impossible.

Is there, anything we ever need for the irreversible transaction because it can cause a lot of scams and issues if this feature gets deployed in the network, On the same time people are here in Bitcoin to have a better risk to reward, so volatility is the beauty of the market and so far it's now getting stability on some level because the total coins are getting distributed into a much large number of users.   

Government acceptability is just a dream because why, a country let go of its own currency and adopt a currency in which if they don't have enough quota (Supply) they cant even control their economic policies, on the same with their native currency they can do whatever they can and this what restricts bitcoin to be a universal currency, but it still can be a payment mode.

Irreversible: But that’s what you expect when you are in charge of your money. You can make mistakes and you’re in charge of the mistakes as well. So it’s all on you if you send money to the wrong address.

Volatility: It goes both ways; it isn’t necessarily a bad thing because it can be a pro or a con depending on the market. So just have it in mind before you invest.

No government Regulations: If it were to be regulated then it shouldn’t exist because it was created to not be regulated, it is intentional.

Not accepted everywhere: Now you have a proper con! But over time, the use of Bitcoin as a payment method increases. Let’s hope it gets to that point where 2/3 of the world uses it.

So to you OP,  no government regulation is a con? That should be a pro for bitcoin because in the first place the government shouldn't be the one in control of Bitcoin, it's not a centralized digital currency, I am here today because Bitcoin is decentralized, of cos it's something that the government won't like, but at the same time it's something that people like me will want because we don't like that the government involvement in everything.

What's left for the government to regulate is the exchange where bitcoin investors are selling off their Bitcoin, they have every right on such platforms due to crime rate and activities, so I understand,  and since Bitcoin is traceable it will be easy for them to go after criminals that might want to use Bitcoin for illegal funding and activities.

I used to hate how Bitcoin is not been accepted worldwide already, both offline and online but now I see that this doesn't matter, because Bitcoin is decentralized, it's automatically against the system that the government is ruling over, I think it's better fit that Bitcoin should stay as digital gold than trying to go the route of payment solution.

I agree that volatility is a real cons and an actual issue of cryptocurrencies(except stablecoins ofc). But I disagree with the rest of the statements. Bitcoins and other cryptocurrencies are way more regulated by governement than cash money, and being irreversible doesn't belong to cons, it belongs to pros actually as it prevents any kind of censorship. Futhermore it's the same thing with cash money, once you've hand over your cash money, you won't be able to cancel the transaction if the person is not anymore in front of you.

One of the things we need to understand about the market is that Bitcoin transactions are irreversible.
Some persons especially the newbies mostly ask this question if the transaction can be cancelled? Sometimes the reply they get could annoying because we could expect them to know that the transaction is not reversible in most certain condition.
Volatility is another thing newbies need to understand because they invest in the crypto market so that they can be aware of bear and bill season.

    One of the conceits of cryptocurrencies is that anyone can mine them using a computer with an Internet connection. However, mining popular cryptocurrencies requires considerable energy, sometimes as much energy as entire countries consume. The expensive energy costs coupled with the unpredictability of mining have concentrated mining among large firms whose revenues running into the billions of dollars. Though cryptocurrency blockchains are highly secure, other crypto repositories, such as exchanges and wallets, can be hacked. Many cryptocurrency exchanges and wallets have been hacked over the years, sometimes resulting in millions of dollars worth of "coins" stolen.
   Bitcoin and other cryptocurrencies still have their fair share of haters and critics. Being a relatively new currency, it will take time to gain widespread trust and adoption. That’s why it’s risky to invest in bitcoin. Critics and haters try to spread distrust in cryptocurrencies such as bitcoin, which can impact the value and your investment in bitcoin. But when it comes to investing, you've got to balance your adventurous spirit with some down-to-earth sensibility. Do your research, diversify your investments, and never put all your eggs in one basket — unless it’s a basket you’ve crafted yourself from end-to-end, and even then, be cautious. So, yes, Bitcoin could be a thrilling part of your portfolio. Just make sure it's a part you can afford to take a wild ride with, or possibly even afford to lose. Enter the game with eyes wide open, a solid plan, and an exit strategy.

Isn't this a pro instead of a con? Why would any payment made in the world you want it to be reversed. Also, it can be reversed until and unless its confirmed.
There's no way you just took a pro of the blockchain and made it a con just because you want it to be reversible.

if you send to a wrong recipient, it's gone. And that's how it should be. Bitcoin is not for everyone.

It doesn’t really add up to say decentralization is an advantage to Crypto and in the very next sentence, you say it’s a disadvantage to Bitcoin. Well, we might say Bitcoin isn’t crypto as, it’s a term that is more accredited to the various altcoins out there but, Bitcoin is still a cryptocurrency from which crypto is coined and it’s very much a digital asset with all its attributes.

You are right as there are just about a means to making a scam out of everything and not just Bitcoin itself. Bitcoin might have been fit forward following its none persona attachment to an address nature but, it’s even worst in fiat where you have an account detail or channel and still, they make it disappear just with a statement or a written document.

Government regulations been absent from Bitcoin isn’t a minus. I don’t know how the starter of this topic got that idea but, I would recommend a little more reading. I am on that path when I get the chance but, Bitcoin is something out of the usual. That’s what advancements is about, something not within the norms of the society but, created out of the norms of society to serve the society.
While we might use signatures and passwords to transfer value rights to another individual in banks and available spending means, Bitcoin uses private keys or seed phrases as signatures to transfer these rights. It’s just the same thing but, using different means and you serving as the sole right to this with miners to confirm legitimacy and putting your transactions in blocks and it gets adopted by nodes to ensure security of the whole system.

This is simply the law of demand and supply. It’s everywhere and in every commodity that is been exchanged out there. Flood it in the market and it’s price goes down, reduce it in the market and the price goes up. It’s that simple.

Should some individuals or bodies with large holdings decides to sell off all they’ve got, be sure there are more than enough investors to buy them and when it’s all bought and stored away, scarcity is restored and the price gradually returns to its price. That’s joy heart breaking, it’s just business!

Truth anyone going into bitcoin must understand this facts you have mentioned. Although bitcoin transaction can be reversed if it has not been confirmed yet do it is important to always cross check the address you are sending to and if incase you have made use of the copy to clipboard its good we check the address again to be sure because sometimes some malware may take control of your device without you noticing.

How does keeping your coins in a wallet put you at risk of losing your funds, as long as you keep it in an open source and non-custodial wallet, your money is not at risk, what you need to do is to back up your seed phrase and work on your security. If you sign up to become your own bank, these are the responsibilities that come with it.
If you want centralized money/system, stick with fiat, Bitcoin is decentralized and if you are going to use it you have to be your own bank and be in control of your money and security.

Yes not beign acceptable by the government doesn't  affect  the decentralized  system of Bitcoin.

There's  only one way for someone  to be affected by the word not acceptable which is using a centralised exchange wallets for your bitcoin storage and this dispute the fact of it's  decentralisation as government could possibly  use the influence of KYC to distrupt your transaction  progress.

You don't  want to be affected by this?? Learn to embrace the world fo a decentralized  system

I don't also like how it's not widely accepted yet, there are times where I always want to use Bitcoin to make purchases but I can't, because the store won't accept bitcoin as means of making payment.

There are are also times when I feel like holding my Bitcoin is the best option, because look around you, how many people are willing to even spend their Bitcoin on anything than hold for future price appreciation? They aren't many, majority are ok with storing bitcoin for long term hold, it's more like a gold now than currency for making payments online and offline.

Just so you know, Fiat is the easiest one for criminal activities, if you think that it's bitcoin then your research is still half way, go back and do some research, Fiat is use mostly for funding attacks and terrors, bitcoin can be traced.

Totally agree to this saying because most regulatory agencies place by and policy if the government on fiat has course many scam beyond control but in the area of Bitcoin it's very minimal. Most scam in Bitcoin or crypto currency is due to inability to seek appropriate information and many after quick rich in buying shiltcoin and altcoin.
If people take all measure avoid certain things such as emotion why on trade, quick rich buying of altcoin and shiltcoin that your not fully convince of it value , seek knowledge and be smart I believe bitcoin will be running close to zero scam.

It has been proven many times that most scams happen with fiat money rather than with bitcoin. The lack of government intervention makes Bitcoin the most interesting for its owners, which means that no regulatory authorities will be able to manipulate it for their own interests. Only the owner is his own bank, and only he is responsible for his investments. I don't think this is a minus.

Bitcoin has biggest network in hash rate among many Proof of Work cryptocurrencies but in theory there is risk of 51% attack.

Depends on big or small your transaction is, you will have to wait 1, 3, 6 or 10 confirmations to make sure risk of reverse is nearly zero and don't affect your trade.

How many Bitcoin confirmations is enough?

This is more reason, why it's necessary to copy the right address and confirming it before processing a transaction. In  Bitcoin transactions, some might claim to be able to help you get back your lost cryptocurrency of which isn't true. Once lost, cannot be recovered. The only exception to this, is if you are familiar with the owner of the wrong address you had sent the funds to. If not then your funds are gone and there's no way to know any information about the user of that wallet.

Cryptocurrency or Bitcoin wallets isn't the problem as they provide for you your keys to safe keep. Some people carelessly keep their keys which lead then to losing their funds. As a Bitcoiner, keeping your keys should be your first priority.

Well its quite hard to let everyone just accepts it as it is. Not all are aware on how blockchain works and its advantages. Also there are some business enterprises that still prefer the traditinal payment system or lets just say partners. Probably some are trying it out for additional options or some are pro crypto but this will take time for massive and globally launch adoption.

Technically it's double spending the unconfirmed coins to one of our addresses but in Electrum it's terms as Cancel that is somewhat confusing to people who don't know what it actually is cause once the transaction is broadcasted there is no way to cancel the transaction even with zero confirmation, it can be dropped/purged from the network then we can reuse the funds again.

This is the part I was just trying to get, I know we can cancel unconfirmed transactions by sending it back to our own address which I have done this before. But what I was asking is that can we also spend those unconfirmed transaction to a total different wallet of our choice? I have not tried that out before which is why I’m asking that question I always used to believe that I can only cancel a transaction by sending it back to my personal wallet (which is the wallet I sent it from in the first place). I don’t know if I’m able to be clear enough or I have still made my self confused the more.

I do not understand what you post but I just want you to know that PytagoraZ is correct. If you are sent bitcoin and the transaction has not be confirmed, wallet like Electrum will let you see the unconfirmed coin and also able to spend it. Assuming I send you bitcoin and it is unconfirmed, I can cancel the transaction by sending the unconfirmed coin in another transaction to one of my own addresses. Only what you will notice is that you do not see the unconfirmed transaction anymore. Assuming if you spend the unconfirmed coin, it will become invalid as I use replace-by-fee to cancel the transaction by sending the unconfirmed coin back to my own address.

Change the Bitcoin address to what? I taught it only gives you room to replace the receiver address with the senders address where the sender also becomes the receiver and you can then increase the fee which will make it replace the first transaction to the new one and get it confirmed fast or are we also allowed to change go what ever wallet of our choice as a replacement address?

As long as the transaction has not been confirmed by the network, we can cancel the transaction and change the bitcoin recipient address by increasing the transaction fee from before.


My country has regulations regarding bitcoin and crypto asset ownership. Additionally, if a company has a business license then it must comply with the same policies regardless of whether it uses a crypto or fiat investment system. But I agree that there are still many investment frauds in the crypto world, but there are also many in fiat so all the risks are the same, whether fiat or crypto

Yes. But if the transaction is not yet confirmed, it can be reversed.

But it has been the opposite. People are buying and the price is increasing more than decreasing. Bitcoin is an appreciative asset.

The reason it is not a depreciative asset, unlike the fiat control by the government which is a depreciative asset.

Bitcoin is decentralized. Do not be surprised that people in the countries it is not accepted are having it and trading it.

So, I just did a little research and I think this information is worth sharing, and will help the newbies around here.  And I'm open to other ones too

These are a few cons to take note of before doing BTC

• Irreversible:  Most of us know that BTC transactions are final and not reversible,  and as such, if you send to a wrong recipient or a wrong amount, it becomes a really sticky situation. A lot of people tend to keep their digital currency in a cryptocurrency wallet, which puts them at rusk of losing investments if there is no longer access to their private key.

•Volatility: Satoshi Nakamoto imposed a limit of 21million Bitcoins, and then, it was regarded as  totally scarce. That contributed to Bitcoin's value. But also contributes to price volatility. Bitcoin's decentralization also implies that no minimum valuation is guaranteed, that is to say, if a large group of investors stops using Bitcoin, and sells them off, the value would significantly drop , and people with large amount of the coin will be affected 💔

•No Government Regulations: While decentralization is  considered as an advantage of crypto, it can be seen as a disadvantage of Bitcoin, given that it implies there is no investment regulations.
Unlike a currency regulated by a Central Bank, Bitcoin transactions are not accompanied with legal protection, and given it's irreversibility, makes it scam prone.

•Not accepted everywhere: Even as the rise of cryptocurrency is upon us, Bitcoin, still isn't accepted just everywhere. Major companies now recognizes Bitcoin as a means if exchange, it's still not widely accepted. This puts a limit on where you can spend.