The 3 Unavoidable Problems for Bitcoin

[tk808]

I'm sure some other people have the same thoughts about Bitcoins future, the fact is noone knows. But maybe there is information out there that i'm not aware of.

1) Government regulations, Taxation, centralizing, or blantly outlawing bitcoin

2) Government digital currencies, if bitcoins technology really catches on will we see governments forming their own regulated digital currencies?

3) Security. 51% attacks and Quantum Computing (I understand SHA256). Quantum is still decades a head of us.

[Lauda]

1) Not a problem.
2) Not a problem.
3) So 51% are related to Quantum Computers (of which non exist) according to you. 

[phazon307]

In order for them to regulate it they would first have to get every other country in the world to go along with that government wanting to control something that is open to the entire digital realm it will never happen.

[Holliday]

Government regulations are a problem for everything... this isn't Bitcoin specific. Although, Bitcoin was designed to be resistant to such measures (peer to peer, decentralized).

The possibility of a 51% attack is higher than I would like, but I blame it on miners looking at the short term instead of long term. Perhaps they need to experience an actual attack before taking it seriously.

[Nagle]

No, the three unavoidable problems for Bitcoin are:

• Anonymous, remote, irrevocable transactions are the scammer's dream. This makes Bitcoin a scam magnet.
• The confirmation process is too slow for real-world commerce.
• The volatility is so high that nothing real can be priced in Bitcoins.

[jonanon]

Most problems have solutions - Bitcoin can evolve with time - When a problem does arise there will be plenty of people with the ability to solve them or at least work with them to ensure Bitcoins long term survival.

[tvbcof]

No, the three unavoidable problems for Bitcoin are:

• Anonymous, remote, irrevocable transactions are the scammer's dream. This makes Bitcoin a scam magnet.
• The confirmation process is too slow for real-world commerce.
• The volatility is so high that nothing real can be priced in Bitcoins.

While I agree significantly I would point out that it depends on what role Bitcoin falls into.

  #1 and #2 are actually benefits if Bitcoin is used as a reserve or balancing currency.

  #3 would likely diminish significantly if it were used as such.

If Bitcoin tries to compete as a low-level exchange currency it will probably fail for the reasons you mention and others.  Specifically, it cannot really scale to service vast end-user economies while retaining it's current broadly distributed infrastructure approach and without this property there is not much about it which is especially appealing.  Particularly when there are options.

[btc4ever]

I just had a thought.  Maybe altcoins are how bitcoin solves its scaling issues.    ;-)

Well, it is a happy thought that we would get big enough to need to solve them anyway.

[tvbcof]

I just had a thought.  Maybe altcoins are how bitcoin solves its scaling issues.    ;-)

Well, it is a happy thought that we would get big enough to need to solve them anyway.

What a great idea!

[cdog]

blantly outlawing bitcoin

How did that work out for file sharing with film and music?

Government crypto? lol that was a good one, but dont quit your dayjob

Quantum computing? If we ever get that, every bank account and military network in the world could be plundered. Bitcoin would be pretty far down the list of "things to do"

[Peter R]

2) Government digital currencies, if bitcoins technology really catches on will we see governments forming their own regulated digital currencies?

It looks like the Royal Canadian Mint is moving forward with their "MintChip" digital currency:

http://www.itbusiness.ca/news/royal-canadian-mint-readies-its-version-of-bitcoin-mintchip/46113

[the_poet]

Another thing I've been wondering is: given the high fluctuation in value that BTC has been (and will be) experiencing, how can businesses accepting it overcome this problem when pricing their items/services for sale? Should they constantly lower/raise prices?

[yntro]

2) Government digital currencies, if bitcoins technology really catches on will we see governments forming their own regulated digital currencies?

Dont think that they will surpass BTC )

[Littleshop]

No, the three unavoidable problems for Bitcoin are:

• Anonymous, remote, irrevocable transactions are the scammer's dream. This makes Bitcoin a scam magnet.
• The confirmation process is too slow for real-world commerce.
• The volatility is so high that nothing real can be priced in Bitcoins.

1. True.
2.  Nope.  I sell things in person and do not wait for confirms.  This is only a problem for transactions over $500.  All of the issues here can be mitigated.
3. Trueish. It is still too much to price in BTC but do we price things in grams of gold?  No, most items are priced in the local currency of the seller.

[RodeoX]

So, no problems then. Yay!

[rext]

bitcoin for the win!

[Piper67]

The three problems for the internet are:

1) It's a den of pornographers and child molesters.
2) It's too hard to connect to it.
3) Nobody will ever take it seriously.


 

[franky1]

I'm sure some other people have the same thoughts about Bitcoins future, the fact is noone knows. But maybe there is information out there that i'm not aware of.

1) Government regulations, Taxation, centralizing, or blantly outlawing bitcoin
research the prohibition. they tried to ban and control alcohol.. yet certain members only clubs and moonshine continued along with other methods to keep the alcohol flowing

2) Government digital currencies, if bitcoins technology really catches on will we see governments forming their own regulated digital currencies?
right now fiat is mostly digital, when it comes to debit cards and such. so government producing a crypto currency wont be any different. bitcoin exists and grows purely because it is not a government owned asset.

3) Security. 51% attacks and Quantum Computing (I understand SHA256). Quantum is still decades a head of us.
for someone to spend millions/billions just to ruin bitcoin, as oppose to spending less to get bitcoin and protect bitcoin, i see no reason why anyone , even government would do anything negative. it would be much like stealing gold and burying it, never using it and claiming gold is illegal

No, the three unavoidable problems for Bitcoin are:

• Anonymous, remote, irrevocable transactions are the scammer's dream. This makes Bitcoin a scam magnet.

scams are only possible due to two things. 1. people trusting others they cant grab hold of and slap. 2. banks refunding scamers without question. if we get rid of banks refund policy and teach people due dilagence then scammers wont have an easy life. this is human error not bitcoin.

• The confirmation process is too slow for real-world commerce.

to send a bitcoin takes the time of scanning a QR code and pressing send. to process a credit card takes swiping the card and typing pin number in... both equal. but for merchant to receive funds of value takes 10 minutes to confirm with bitcoin, but days/weeks for credit cards.

• The volatility is so high that nothing real can be priced in Bitcoins.

i can go to many websites with bitcoin payment methods, i see many with bitcoin prices. i do not see a problem. the volatility part is a long term thing, not a worry short term. and afterall bitcoin is new and expanding. volatility is expected in a expanding market. so dont cut the legs off the horse before its had a chance to run
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[cr1776]

The three problems for the dollar:
1. Security of value: A continuos 0.000000001% attack from Central Bankers debasing currency.
2. Government Laws and Regulations: Used more for drugs, porn etc than any other currency in the history of the world so far in violation of the law the world over.
3. Other government's printing their own fiat currencies.  If fiat really catches on, we will see other countries like the EU, China, Japan etc trying to print their own money.  (Oh wait, I guess it has caught on already).

:-)

I'm sure some other people have the same thoughts about Bitcoins future, the fact is noone knows. But maybe there is information out there that i'm not aware of.

1) Government regulations, Taxation, centralizing, or blantly outlawing bitcoin

2) Government digital currencies, if bitcoins technology really catches on will we see governments forming their own regulated digital currencies?

3) Security. 51% attacks and Quantum Computing (I understand SHA256). Quantum is still decades a head of us.