The Things you must know about BTC

Discussion in 'About crypto currencies' started by Tengkorakfx, Mar 1, 2018.

  1. Tengkorakfx

    Tengkorakfx Active Member

    Like any currency, there are disadvantages associated with using Bitcoin:

    1. Wallets Can Be Lost
    If a hard drive crashes, or a virus corrupts data , and the wallet file is corrupted, Bitcoins have essentially been “lost”. There is nothing that can done to recover it. These coins will be forever orphaned in the system. This can bankrupt a wealthy Bitcoin investor within seconds with no way form of recovery. The coins the investor owned will also be permanently orphaned.

    2. Bitcoins Are Not Widely Accepted
    Bitcoins are still only accepted by a very small group of online merchants. This makes it unfeasible to completely rely on Bitcoins as a currency. There is also a possibility that governments might force merchants to not use Bitcoins to ensure that users’ transactions can be tracked.

    3. Risk of Unknown Technical Flaws
    The Bitcoin system could contain unexploited flaws. As this is a fairly new system, if Bitcoins were adopted widely, and a flaw was found, it could give tremendous wealth to the exploiter at the expense of destroying the Bitcoin economy.

    4. Bitcoin Valuation Fluctuates
    The value of Bitcoins is constantly fluctuating according to demand. As of June 2nd 2011, one Bitcoins was valued at $9.9 on a popular bitcoin exchange site. It was valued to be less than $1 just 6 months ago. This constant fluctuation will cause Bitcoin accepting sites to continually change prices. It will also cause a lot of confusion if a refund for a product is being made. For example, if a t shirt was initially bought for 1.5 BTC, and returned a week later, should 1.5 BTC be returned, even though the valuation has gone up, or should the new amount (calculated according to current valuation) be sent? Which currency should BTC tied to when comparing valuation? These are still important questions that the Bitcoin community still has no consensus over.

    5. No Buyer Protection
    When goods are bought using Bitcoins, and the seller doesn’t send the promised goods, nothing can be done to reverse the transaction. This problem can be solved using a third party escrow service like ClearCoin, but then, escrow services would assume the role of banks, which would cause Bitcoins to be similar to a more traditional currency.

    6. Built in Deflation
    Since the total number of bitcoins is capped at 21 million, it will cause deflation. Each bitcoin will be worth more and more as the total number of Bitcoins maxes out. This system is designed to reward early adopters. Since each bitcoin will be valued higher with each passing day, the question of when to spend becomes important. This might cause spending surges which will cause the Bitcoin economy to fluctuate very rapidly, and unpredictably.

    7. No Physical Form
    Since Bitcoins do not have a physical form, it cannot be used in physical stores. It would always have to be converted to other currencies. Cards with Bitcoin wallet information stored in them have been proposed, but there is no consensus on a particular system. Since there would be multiple competing systems, merchants would find it unfeasible to support all Bitcoin cards, and therefore users would be forced to convert Bitcoins anyway, unless a universal system is proposed and implemented.

    8. No Valuation Guarantee
    Since there is no central authority governing Bitcoins, no one can guarantee its minimum valuation. If a large group of merchants decide to “dump” Bitcoins and leave the system, its valuation will decrease greatly which will immensely hurt users who have a large amount of wealth invested in Bitcoins. The decentralized nature of bitcoin is both a curse and blessing.
  2. andengireng

    andengireng Member

    I want to write my opinions why I use BTC, because all transactions ever done at once Bitcoin balances possessed by someone we can see, but we do not know who the owner of the Bitcoin address if the owner does not tell it. Each Bitcoin user can actually choose whether or not his name will appear, but even if the user wants to keep his identity secret, all of his transactions are still recorded and publicly monitorable.
  3. Tengkorakfx

    Tengkorakfx Active Member

    I agree, in fact there are many benefits that we can get from btc. of course beside we can get big income. hehe
  4. NewbieTrader

    NewbieTrader Member

    I had some technical problems using BTC. but this was years ago. I tried to make a transaction but somehow it just got stuck. I didn't check for months, but finally it arrived.
  5. Tengkorakfx

    Tengkorakfx Active Member

    for months? >.< have you gotten another problem after that?
  6. NewbieTrader

    NewbieTrader Member

    yes, a few months it got stuck. good think i didn't uninstall my wallet. i didn't use that wallet ever since, but when i finally got the money and withdrew it, i didn't have any problem.
  7. Tengkorakfx

    Tengkorakfx Active Member

    I see... Basically, your wallet is the most vital thing when you're about to make transactions with cryptocurrency. So it's better to make some notes about your wallet's credentials in case you have forgot it in the future...
    NewbieTrader likes this.

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