Topic: What's your biggest problem with Bitcoin - page 110. (Read 135106 times)

My biggest problem with bitcoin:

Though Bitcoin is a fine digital currency, it is hard seeing it take off for consumers the same way credit cards have.  While centralized payment systems like credit cards have their disadvantages, they offer one very large advantage as well: they act as an arbiter in the case of disputes.  The buyer and seller both agree that "Papa Visa" knows best and with that confidence consumers open their wallets.

Bitcoin has none of that.  Yes it is decentralized, yes it is amazing to see payments go through so quickly and so cheaply, but what happens when it goes wrong?  I can trust tiny merchants with my credit card because I know if something goes wrong I have a recourse, there is no such recourse with Bitcoin.

Most often case filed against the trade of bitcoin with another currency is often defeated in disputes , so i dont like this nature , even though it is specialty of bitcoin..

Its good , its bad ..it always make me confuse.

That's true you can convert it by using localbitcoins I think its the best way to convert your bitcoins to USD but the problem with me is the confirmation time that it is taking and another big problem is that in my country very few people use it or accept it as a mode of payment.

If you are extra paranoid about it, your friend would need to meet in person with a Bitcoin seller from Localbitcoins, but real life dealers are limited to a few countries, so if you are in some country where BTC is even mroe obscure than usual, you can't safely convert to USD, if by safely you mean avoiding the banking system.

The best way safely converting is if you have a local(country) friend that will convert it for you.

My biggest problem safely converting to us dollar

Yes that is the biggest problem with bitcoins. Sometimes it hardly takes 2 minutes to get confirmed and sometimes it might take more than 48 hours and that is really ridiculous.

I can paste here 2 different transaction ids with the same amount of fee and one got confirmed very quickly another one has 2 days and hasnt confirmed yet

It is just random, I make 2 transaction with usual fee, the first one is confirmed like about below one hour and the second one it get 3 days to confirmed. IMO whoever pay more fee he will get the first chance to get confirmed but with a low miners fee I dont think it will go fast. Like I just said it takes 3 days to confirm my transaction but at least it will confirm at last, just be patience

Well that is the best way but i have seen transactions even with some low fee, it didnt get confirmed what will happen if they dont get confirmed ? how long will stay or will lost forever that unconfirmed amount?

It's impossible that a transactions gets frozen forever as far as I know. All transactions eventually get processed, it will just take a lot more to get it done. The best way to avoid this is always paying the standard fee.

But what about the transaction that has no fee, they never get confirmed so sad

Transaction in Bitcoin actually Instant, Confirmation of the transaction which is takes much time.  

There are many factors deciding the price of Bitcoin.
As 2016 is the year of halving the block reward so you can expect major pumps at that time.

my biggest problem with bitcoin is price dont want move high because i know bitcoin is future of currency. why bitcoin price still cheap right now

Acutally, No.  A very common reason (if not the most common) for refinancing a loan is so that you pay LESS overall.  Here's an example: Imagine that you have clocked up a $10,000 unsecured debt on a credit card at 15%pa.  Instead of paying this high rate, you go to a bank and take out a $10,000 loan (secured against an asset of yours) at 7% and pay off the credit card.  You have now made the interest payments smaller and thus will pay less.   Another example is when a central bank lowers its interest rate which causes the other banks to offer lower rate loans-- people often refinance their existing loans to take advantage of the new lower rates.


I've already demonstrated in my first post how it is possible to payback interest even though the total amount due is greater than 100% of the hard currency supply.  It's possible because we can arrange loans such that interest due by different parties will cancel each other.  I gave the simplest example with just two protagonists, but in the real world it involves more actors, eg: the banks.  In the real world it is the banks which handle the cancelling of interest.  This results from the fact that the banks continuously borrow off each other to balance their books and a bank only pays back what is due after the cancellation of interest owed to each other.


What does this particular example prove about anything in general?  If you're stupid enough to take out a long at 5% per month and have no hope of paying it back then you deserve to go bankrupt!   I've not said that ALL loans can be paid back,  I've only said that loans taken out wisely can be paid back.

For your general enlightenment:  If you can earn more profit than what you will pay in interest from money supplied by a loan then the loan is a wise move (of course you have to also balance it against the risk involved in deriving your profit-- equations that compute this are very well known).  If you will not earn more profit than what you will pay in interest than the loan is a very bad idea!  It's that simple!  Owing debt baring interest can make you money in the right circumstances.

What you're saying still isn't true because you are forgetting that loans can be used to cancel each other.  Here is a simple example:  image that Satoshi who is cold and has a broken arm has 50BTC, a forest of trees and food while hungry Ben has nothing but an axe.  Ben borrows 50Btc from Satoshi to be repaid at the end of the month with 10% interest.  Ben then buys the trees and some food from Satoshi for 50BTC.  Ben chops the trees into firewood which is now worth 55BTC.  Satoshi buys the wood with 50BTC cash and agreement to pay the extra 5BTC at the end of the month (effectively he is borrowing 5 virtual BTC from Ben).  At the end of the month Ben pays Satoshi 50BTC and they agree that the two debts of 5BTC cancel each other and that everything has been made good, ie: there is no debt remaining to anyone at all.  

The important thing to note is that without the use of loans Satoshi's trees would have never been chopped, Satoshi would remain cold and Ben would have starved!  There is nothing inherently wrong with interest bearing debt as long as it is used wisely.  Everyday around the world interest bearing debt facilitates trade that would not occur otherwise.