Topic: What do you think is the biggest disadvantage of bitcoin? (Read 1955 times)
Umm. Have you ever tried using it as a cash payment system to make a purchase?
Definitely one of the biggest drawbacks, the lack of scalability. But all PoW coins have the problem as soon as they have a critical number of users / transactions. This also applies to PoS, but there is more leeway here.
No, Bitcoin is not used for investment purposes.
In the past, many have said the same.Bitcoin has no usecase, it is to slow and expensive and is hardly used for anything.
Buying bitcoin is no investment because it has no usecases, it is a pure ponzi scheme. It cannot technically be classified as an investment.
It is an investment and that's why many people are getting their own portfolios with bitcoin. It is not a ponzi scheme, a ponzi scheme guarantees you profit but bitcoin is volatile and that's its nature asset that you have to decide whether to invest or not. Being expensive, no use case and slow. Well, investors won't be getting in and holding it if those descriptions you have mentioned are existing on it. About it being slow, segwit is making it quicker.Buying bitcoin is no investment because it has no usecases, it is a pure ponzi scheme. It cannot technically be classified as an investment.
Now you hold BTC for the money you gave to the exchange. When the ponzi scheme ends, you lose most of your money. This is not investing.
You hold the money that you have. What if you didn't bought from exchanges and you just mined it? 
Popularity of bitcoin and Market value are increasing incredibly day by day.
But it has some disadvantages too. We can't ignore those disadvantages.
High fees.
Most of the governments don't like bitcoin.
In most of the countries bitcoin is banned.
It has a high chance of corrupting the bitcoin system.
Virus can attach to the bitcoin system anytime.
It is difficult to understand incomplete bitcoin functions.
Black marketers can easily use bitcoin. As a result, it will damage the reputation of bitcoin.
It has no refund system.
It has a high chance that other currencies will overshadow bitcoin.
The bitcoin system can be hacked by hackers.
Nowadays, bitcoin is a breathtaking money transaction system. It is popular all over the world. It's a time consuming and easy transaction system. But we can't also ignore the above disadvantages of bitcoin.
But it has some disadvantages too. We can't ignore those disadvantages.
High fees.
Most of the governments don't like bitcoin.
In most of the countries bitcoin is banned.
It has a high chance of corrupting the bitcoin system.
Virus can attach to the bitcoin system anytime.
It is difficult to understand incomplete bitcoin functions.
Black marketers can easily use bitcoin. As a result, it will damage the reputation of bitcoin.
It has no refund system.
It has a high chance that other currencies will overshadow bitcoin.
The bitcoin system can be hacked by hackers.
Nowadays, bitcoin is a breathtaking money transaction system. It is popular all over the world. It's a time consuming and easy transaction system. But we can't also ignore the above disadvantages of bitcoin.
No, Bitcoin is not used for investment purposes. You can invest in buying a house, the usecase will be to live in it or rent it out. You can invest in the stock market, the usecase will be that the business grows in selling more stuff or providing more services. You can invest in gold, the usecase is jewelry and industrial use.
Bitcoin has no usecase, it is to slow and expensive and is hardly used for anything.
Buying bitcoin is no investment because it has no usecases, it is a pure ponzi scheme. It cannot technically be classified as an investment.
For instance if you give me money, that is your cost and my gain. Giving out money is not an investment.
If you buy BTC at an exchange, that is your cost. Again, giving out money is not an investment. You have simply put money into a ponzi scheme. Now you hold BTC for the money you gave to the exchange. When the ponzi scheme ends, you lose most of your money. This is not investing.
Bitcoin has no usecase, it is to slow and expensive and is hardly used for anything.
Buying bitcoin is no investment because it has no usecases, it is a pure ponzi scheme. It cannot technically be classified as an investment.
For instance if you give me money, that is your cost and my gain. Giving out money is not an investment.
If you buy BTC at an exchange, that is your cost. Again, giving out money is not an investment. You have simply put money into a ponzi scheme. Now you hold BTC for the money you gave to the exchange. When the ponzi scheme ends, you lose most of your money. This is not investing.
We keep saying bitcoin is a nice currency, because of lots of reasons like deflation, freedom etc. There are times though that we find some kind of inconvenience on its use.
IMO, bitcoin has a huge disadvantage. The fee part. I've made a transaction 5 days ago with a charge of 500 satoshis (in total). That's pretty cheap and I set that fee because I'm transferring money to myself, but thinking that it may never be confirmed is kinda annoying. Based on bitinfocharts, the median fee right now is $7! I'm playing on an online trading card game that accepts only paypal, and I'm trying to convince them accept bitcoin. How exactly?? All those HODL enthusiasts look forward to see bitcoin touching the $100k. In order for this to happen, it means more demand. This leads to more transactions per second which also leads to higher fees. Who knows how many satoshis we'll have to pay for having a high priority among miners' choices.
Am I the only one that starts unseeing bitcoin as a medium of exchange?
Bitcoin transactions fees is something I really dislike when transferring bitcoins, cause the in order for your transaction to be processed real fast you have to pay higher fees else your transaction will be considered as less important, with more people adopting bitcoin daily we might see a fee higher than even $7 soon, for this reason I doubt if bitcoin is ready to become a global currency or used as a medium of exchange, cause you can't be spending $7 TX fee for any commodity you buy, lately bitcoin is used for investment purposes only and not as a medium of exchange. IMO, bitcoin has a huge disadvantage. The fee part. I've made a transaction 5 days ago with a charge of 500 satoshis (in total). That's pretty cheap and I set that fee because I'm transferring money to myself, but thinking that it may never be confirmed is kinda annoying. Based on bitinfocharts, the median fee right now is $7! I'm playing on an online trading card game that accepts only paypal, and I'm trying to convince them accept bitcoin. How exactly?? All those HODL enthusiasts look forward to see bitcoin touching the $100k. In order for this to happen, it means more demand. This leads to more transactions per second which also leads to higher fees. Who knows how many satoshis we'll have to pay for having a high priority among miners' choices.
Am I the only one that starts unseeing bitcoin as a medium of exchange?
Greater adoption for 2nd layer platforms like LN and relevant BIPs can help solve scalability issues.
Nope.
LN is an offchain system, it does nothing to increase onchain scaling.
LN does not solve bitcoin low transaction capacity.
You have to actually increase bitcoin's onchain transaction capacity to increase scalability.
1. Increase blocksize
2. Faster block speed
These are the only ways to increase transaction capacity and lower the transaction fees.
We keep saying bitcoin is a nice currency, because of lots of reasons like deflation, freedom etc. There are times though that we find some kind of inconvenience on its use.
IMO, bitcoin has a huge disadvantage. The fee part. I've made a transaction 5 days ago with a charge of 500 satoshis (in total). That's pretty cheap and I set that fee because I'm transferring money to myself, but thinking that it may never be confirmed is kinda annoying. Based on bitinfocharts, the median fee right now is $7! I'm playing on an online trading card game that accepts only paypal, and I'm trying to convince them accept bitcoin. How exactly?? All those HODL enthusiasts look forward to see bitcoin touching the $100k. In order for this to happen, it means more demand. This leads to more transactions per second which also leads to higher fees. Who knows how many satoshis we'll have to pay for having a high priority among miners' choices.
Am I the only one that starts unseeing bitcoin as a medium of exchange?
I also consider bitcoin to be loose as a digital currency but now it is an investment asset. many people who buy not for transaction needs but they buy even in large quantities to hodl then when the price goes up, they will sell it. IMO, bitcoin has a huge disadvantage. The fee part. I've made a transaction 5 days ago with a charge of 500 satoshis (in total). That's pretty cheap and I set that fee because I'm transferring money to myself, but thinking that it may never be confirmed is kinda annoying. Based on bitinfocharts, the median fee right now is $7! I'm playing on an online trading card game that accepts only paypal, and I'm trying to convince them accept bitcoin. How exactly?? All those HODL enthusiasts look forward to see bitcoin touching the $100k. In order for this to happen, it means more demand. This leads to more transactions per second which also leads to higher fees. Who knows how many satoshis we'll have to pay for having a high priority among miners' choices.
Am I the only one that starts unseeing bitcoin as a medium of exchange?
It is already known, the transaction fee with bitcoin is quite high and it keeps rising when the price bounces high or there is high volatility in the market. With large volume transactions the fee doesn't seem to be big. Maybe someday the same scenario will prevail with low volume transactions, because only through that it is possible to have bitcoin into real life usage.
Bitcoin is an alternate to the traditional fiat, and it is created to fulfill things that aren't possible with traditional fiat. Nothing in the world is perfect, the perfection is upon the way we use it based on the need.
Bitcoin is an alternate to the traditional fiat, and it is created to fulfill things that aren't possible with traditional fiat. Nothing in the world is perfect, the perfection is upon the way we use it based on the need.
Umm. Have you ever tried using it as a cash payment system to make a purchase?
It is very true that Bitcoin has some disadvantages, but you should also understand that there nothing that does not have disadvantages. The disadvantages of bitcoin are what makes it unique. We just need to accept the flaws of Bitcoin and try to understand these flaws in order to take full advantage of Bitcoin in terms of building a decentralized financial ecosystem.
Disadvantage is the risk and volatility, the lack of notification and understanding, with incomplete functions, but which are developing, so Bitcoin is not perfect.
Yes, Bitcoin is not perfect. You should also understand that nothing is actually perfect in this ecosystem we find ourselves. We don't need bitcoin to be perfect.
Disadvantage is the risk and volatility, the lack of notification and understanding, with incomplete functions, but which are developing, so Bitcoin is not perfect.
As my programmer friend always says, there is no perfect system, and neither is bitcoin. There are risks that need to be taken, there are a lot of things to consider and we should be aware that it is not always a profit. All in all, the biggest advantage and disadvantage of bitcoin is the fact that it is a volatile crypto currency.
Disadvantage is the risk and volatility, the lack of notification and understanding, with incomplete functions, but which are developing, so Bitcoin is not perfect.
Bit coin is very hard to cash out of .
I mean how are you going to turn your bit coin into cash ? There are so many fees ,by the time you get your cash you would have lost 20% at the minimum .That's before your government taxes you on top of that.
The other alternative is to trade cash for someone you arrange to meet in a dark alley . Much like the dope deals we all have seen in the movies . Except in the movies ,our hero gets his money or dope back from the robbers .
I mean how are you going to turn your bit coin into cash ? There are so many fees ,by the time you get your cash you would have lost 20% at the minimum .That's before your government taxes you on top of that.
The other alternative is to trade cash for someone you arrange to meet in a dark alley . Much like the dope deals we all have seen in the movies . Except in the movies ,our hero gets his money or dope back from the robbers .
Bitcoin is not a good medium of exchange because of the high gas fee. For big transactions, fees do not matter much but for a small transaction, I would say it's not worthwhile because it will cost more because of the fee. I also think the same fee is the biggest disadvantage for small transactions apart from this BTC is still not acceptable worldwide legally there are restrictions in some countries.
Of course, Bitcoin has the disadvantages, nothing has no disadvantage in the world. Some of the disadvantages are (1.) Bitcoin has an unstable price. So, the value can drop suddenly if the demand in the market is getting lower. (2.) It is not secure enough to keep Bitcoin on wallets. We know there are too many hackers in the world to steal Bitcoin. They always know how to steal people's Bitcoin if we hold it online. (3.) It is no acceptable in all places in the world. So, you cannot use Bitcoin as a payment tool in all places in the world. There are still many limitations of using Bitcoin in many places in the world.
The point you raised as the fee issue I am also supporting the motion but for me the other disadvantage I see will not be from Bitcoin but from the holder not being able to hold long enough to before selling.
Holders have different point of views, most of the time those who don't have any idea and only investing due to friends or relatives advise
are the one who are losing patience, they usually sell whenever panics take over. Seeing that dumped are administering the market for
sure they'll be moving the same.
In the UK, tax is the biggest problem as you can't hold it in tax free investment accounts, and is therefore subject to Capitals Gains Tax.
Here is a typical story about a guy who made some money on Bitcoin, and cashed in just enough to avoid paying tax:
https://www.thisismoney.co.uk/money/investing/article-9151351/The-winners-literal-losers-bitcoin-boom.html
Here is a typical story about a guy who made some money on Bitcoin, and cashed in just enough to avoid paying tax:
https://www.thisismoney.co.uk/money/investing/article-9151351/The-winners-literal-losers-bitcoin-boom.html
In my opinion volatility of bitcoin is one of the big disadvantage.For this reason many traders are lose their money.If bitcoin volatility slow down then everyone will feel free invest on bitcoin.
Then I will consider you being naive about the cryptocurrency market.Bitcoin is not the only volatility coin and the volatility aspect of the market is also what makes a lot of people Millionaire this year. The two things every trader need is to make knowledge about the market and how to trade/invest profitably.
With that been said, the things I consider to be the biggest advantage of Bitcoin is the mining (CO2, heat and TPS) and black market activities which may somehow affect Bitcoin now that the institution is the major investors because some Banks or group that are not happy about the interest of the institution in Bitcoin may use it as their weapon.
Lack of vast infrastucture accepting BTC for mass consumption goods and for high-cost purchase is the main drawback.
If i see the post of your this post in OP, then i am completely agree with you.
There are more masses present in the Earth who aren’t aware of BTCs.
We need to first educate them about this so that they will get to know how to use it.
Moreover there are still places which accept BTC as a mode of payment, but more services need to accept it.
The main reason for this maybe the Government who doesn’t still consider Bitcoins as legal.
Hope everything will be fixed soon.
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