Bitcoin's Weak Points

[evgenia_volkova]

I had been watching some videos on bitcoin being banned in few countries. Thus, was undergoing a though process of the pros and cons of the feature anonymity that is provided by this technology.

Pros:

• No-one has the actual stats of how rich or how poor you are
• No need for you to account your earnings or even pay taxes until you convert it to fiat
• You can have the complete owner ship of your funds Example: some banks and other functional bodies have withdrawal limit if funds are in your wallet exchange as per your wish
• Transferring the ownership is simply by sharing private key

Cons:

• Money-laundering is carried out by spammers
• Criminals can demand for funds and it would be hard to track the criminal

[Niya]

We are always talking here the many benefits, advantages and power of Bitcoin, but we know that for every coin there are always two sides. Bitcoin, am sure, also have its own many weak points that may or may not need some good attention or focus.

Please share here some weak points of Bitcoin that you know and feel...let's discuss them one by one and see how solutions can be applied into them.

Unfortunately there still are many weak points.
For example:
- High fees. The fees needed to confirm a transaction may very even dramatically over a short period of time. But in general it is not so cheap, especially for micro payments.
- Long confirmation time. This is somewhat correlated with fees, but in general remember Bitcoin transactions are not instant.
- High volatility. This peculiarity of Bitcoin make it more used for speculation and long term investments, as a digital asset, but not as currency. To become a real method of payment Bitcoin's volatility should be less dramatic, otherwise merchants will never be prone to accept it.

[Immakillya]

One of the biggest issues of Bitcoin is the crime rate of ransomwares. It costs millions for the victims just to retrieve their data. It is also a non foolproof technology because if you put the wrong address, it's gone. You can't reverse the transactions once you start to send it. The scalability issue, everytime the price of Bitcoin is moving up. The transaction costs is going higher also as they're so many users are sending and receiving. Sometimes it's not worth to send small amounts anymore because of unreasonable cost of transaction. It's not decentralized anymore because you can't liquidate it if you don't comply KYC/AML procedure.

[rabbitfairferry]

It isn't private / not fungible. This is one of the key properties of moneyness. As I understand it, Bitcoin can't achieve base layer privacy so certainly a question on whether it can really be internet money in the long run.