Disadvantages of Bitcoin

[Twentyonepaylots]

Volatility is almost out of the question now that there are huge bag holders buying more and more bitcoin almost every wek, keeping the price at a high point. However, bitcoin's transaction fees, and the length of time it takes for one to complete a transaction may far outweigh the financial benefits it offers.

[1715151186]

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[1715151186]

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[Haliburton]

This is a saying we all know " Everything that has an advantage also has a disadvantage "😔
I brought up this topic so we all can discuss on the disadvantage part of Bitcoin
Although this topic was already here about 4 years ago but it was about advantages and disadvantages of investing in Bitcoin
https://bitcointalk.org/index.php?topic=2631488.msg26777350#msg26777350
And nobody seems to really talk about the disadvantages

Do we know that the anonymity of bitcoin is a problem?
Let's all think about this

Some of us here do day to day transactions and we know that our identities are not known, and since our identities are not know some use that as an opportunity to purchase illegal stuffs and and do illegal things because we are safe with the knowledge "The don't know our identity"

We can look into this article for more explanations
https://www.google.com/url?q=https://londontfe.com/blog/6-disadvantages-of-Bitcoin-and-block-chain-technology&sa=U&ved=2ahUKEwjm3oD-24TuAhUDC-wKHdWfAFcQtwIwC3oECAkQAQ&usg=AOvVaw2luGW-JDogPmP1F0aSeznl

Brother, nothing is perfect in this world. Bitcoin, as well as, any other currency, has its respective advantages and disadvantages. It's important to know about this before getting all in the Blockchain revolution.

One of Bitcoin's biggest disadvantages is price volatility. Who will want to use something that widely fluctuates in price as a currency for day-to-day payments? Another thing that's "killing" Bitcoin is the lack of privacy. So many people believe that they're anonymous with Bitcoin, when in fact, they're not. The whole Bitcoin blockchain is open for anyone to browse each and every transaction by simply having a public address. Without a privacy-preserving mechanism, it's easy enough for the government to identify you. It becomes no different than a credit card.

Despite all of this, I think Bitcoin will do fine in the long run. More and more people are considering it to be a better alternative to national currencies like the US Dollar and the Euro. Other coins may be "better" than Bitcoin (technically speaking), but none can outmatch its level of decentralization. I guess that's what has kept Bitcoin on the top after all these years....

[Shasha80]

Everything has its advantages and disadvantages, as well as Bitcoin. So it is very interesting to discuss the advantages and disadvantages of Bitcoin.
And now the opening post wants to talk about the shortcomings of Bitcoin, that will be a discussion that we have to find a solution for. But for me
the anonymity of Bitcoin is not a big problem, after all it is wrong for people to think that Bitcoin is completely anonymous. Because Bitcoin transactions
are very easy to track, therefore several times criminals who use Bitcoin have been arrested and identified. The most important thing as long as
Bitcoin provides more benefits, although having flaws should not be a problem.

[ifty12]

The Indian government is reportedly planning to fast-track its proposed cryptocurrency bill using the ordinance process.

Similar to an executive order in the U.S., an ordinance law is put into effect by India’s president on the recommendation of the cabinet, and would be equivalent to an act of parliament. The route is only supposed to be taken when parliament is not in session.

The government is keen to pass the “Cryptocurrency and Regulation of Official Digital Currency Bill 2021” within a month of clearance of the ordinance, according to a CNBC-TV18 report on Friday. The Indian Prime Minister’s Office and Finance Ministry, and Cabinet secretariat have started preparing the draft details of the ordinance, it said.

The arrival of the bill would potentially kick off the development of a digital rupee while banning “private cryptocurrencies,” per previous reports

[Kong Hey Pakboy]

Brother, nothing is perfect in this world. Bitcoin, as well as, any other currency, has its respective advantages and disadvantages. It's important to know about this before getting all in the Blockchain revolution.

One of Bitcoin's biggest disadvantages is price volatility. Who will want to use something that widely fluctuates in price as a currency for day-to-day payments?

This is very true. Even in the past few years this is the main 'disadvantage' the people are talking about when it comes to Bitcoin. The arguments before are about uncertainty of the price, and there's nothing we can do about it. But as time passes by, the people have accepted this truth and still continue to do transactions using bitcoin. It is a fundamental truth about it, and if we cannot accept this truth, might as well stop using it.

[acener]

Do we know that the anonymity of bitcoin is a problem?
Let's all think about this

Some of us here do day to day transactions and we know that our identities are not known, and since our identities are not know some use that as an opportunity to purchase illegal stuffs and and do illegal things because we are safe with the knowledge "The don't know our identity"

We can look into this article for more explanations
https://www.google.com/url?q=https://londontfe.com/blog/6-disadvantages-of-Bitcoin-and-block-chain-technology&sa=U&ved=2ahUKEwjm3oD-24TuAhUDC-wKHdWfAFcQtwIwC3oECAkQAQ&usg=AOvVaw2luGW-JDogPmP1F0aSeznl

The advantage and disadvantage of Bitcoin or anything would only depend on how you see it and use it.
Just as you've said the anonymity of Bitcoin has been used to purchase illegal stuff and other use it for money laundering,
But sometimes those anonymity or our privacy is also a good one for some of us,
Let's say that you want to invest but you don't want your family to know or other people to know so we would use the anonymity of Bitcoin to do it.

[Mariana Lisa]

The main disadvantage is many countries they banned bitcoin, so government will not support the cryptocurrency adoption to there country people.

[xceltokenplus]

Bitcoin has both advantages and disadvantages:

The advantages of this coin are high payment freedom, transparency of information, high security, reduced risks for traders. Among the disadvantages we highlight the risk and volatility, the lack of notification and understanding, with incomplete functions, but which are developing, so Bitcoin is not perfect.

[Yatsan]

The disadvantage of Bitcoin being used on illegal activities is because people who makes use to it took the advantage Bitcoin is offering us and that leads to the birth of Bitcoin's advantage. If people will only be responsible on using Bitcoin in general neglecting or diminishing the pseudo-anonymity of Bitcoin into good things, that disadvantage will be a great advantage to all. Mostly, the disadvantages of the existence of things are commonly made up the mankind and it will be really hard to resolve that for we cannot control people's minds. Every now and then they will just make ways to took advantage of the things that can make them accessible into things that were not supposed to be done like illegal activities being held using Bitcoin.

[dihari]

If you refer bitcoin anonymous as a global currency nowadays is disadvantage, then yes, it's a problem.
When police can't track who buy ilegal stuff on the internet, or they use bitcoin for money laundering, I agree that's a disadvantage of bitcoin.
But besides its, I thank God  it's not only anonymous, it's also naked. Everyone can see and track transactions everywhere, everytime.

This is how Satoshi Nakamoto reveal 'how anonymous are bitcoin' in technical side

> Can nodes on the network tell from which and or to which bitcoin
> address coins are being sent? Do blocks contain a history of where
> bitcoins have been transfered to and from?

Bitcoins are sent to and from bitcoin addresses, which are essentially random numbers with no identifying information.

When you send to an IP address, the transaction is still written to a bitcoin address.  The IP address is only used to connect to the recipient's computer to request a fresh bitcoin address, give the transaction directly to the recipient and get a confirmation.

Blocks contain a history of the bitcoin addresses that a coin has been transferred to.  If the identities of the people using the bitcoin addresses are not known and each address is used only once, then this information only reveals that some unknown person transferred some amount to someone else.

The possibility to be anonymous or pseudonymous relies on you not revealing any identifying information about yourself in connection with the bitcoin addresses you use.  If you post your bitcoin address on the web, then you're associating that address and any transactions with it with the name you posted under.  If you posted under a handle that you haven't associated with your real identity, then you're still pseudonymous.

For greater privacy, it's best to use bitcoin addresses only once.  You can change addresses as often as you want using Options->Change Your Address.  Transfers by IP address automatically use a new bitcoin address each time.

> Can nodes tell which bitcoin addresses belong to which IP addresses?

No.

> Is there a command line option to enable the sock proxy the first
> time that bitcoin starts?

In the next release (version 0.2), the command line to run it through a proxy from the first time is:
bitcoin -proxy=127.0.0.1:9050

The problem for TOR is that the IRC server which Bitcoin uses to initially discover other nodes bans the TOR exit nodes, as all IRC servers do.  If you've already connected once before then you're already seeded, but for the first time, you'd need to provide the address of a node as such:
bitcoin -proxy=127.0.0.1:9050 -addnode=<someipaddress>

If someone running a node with a static IP address that can accept incoming connections could post their IP to use for -addnode, that would be great.

> What happens if you send bitcoins to an IP address that has multiple
> clients connected through network address translation (NAT)?

Whichever one you've set your NAT to forward port 8333 to will receive it.  If your router can change the port number when it forwards, you could allow more than one client to receive.  For instance, if port 8334 forwards to a computer's port 8333, then senders could send to "x.x.x.x:8334"

If your NAT can't translate port numbers, there currently isn't a command line option to change the incoming port that bitcoin binds to, but I'll look into it.

[maculeth]

Some of us here do day to day transactions and we know that our identities are not known, and since our identities are not know some use that as an opportunity to purchase illegal stuffs and and do illegal things because we are safe with the knowledge "The don't know our identity"

it could be a problem when there is fraud or the purchase of illegal objects. because bitcoin is anonymous, we don't know who the sender and receiver are because there is only the address there. and if it happens in a negative way then it will make it difficult for the parties concerned to investigate.

[swogerino]

I don’t see any disadvantages as long as you are earning it with honesty and you are not using it for money laundering or other criminal offences.I only see advantages in Bitcoin,it can be stored as a store of value and you are your own bank manager,it can be changed to real cash in a flash in different online exchanges if you need it quickly,for people who like online investments lately Bitcoin is being widely accepted in many sites(of course many scam sites exist so you have to be careful and do your own research before investing in any site),it can be used to gamble which the majority of us here absolutely do,so in the end it can make our life easier that is why I say I only see advantages from the use of Bitcoin.

[Lordhermes]

The only difference was criminals can easily buy illegal stuff using Bitcoin without proof of linking the seller to buyer or in simple terms "no string attached" while on the other hand, Surely Fiat can be used too on transaction of illegal stuff but authority can easily connect the seller to the buyer in case the seller got busted.

I may not fully agree with you on this, in cryptocurrency illegal and fraud transactions, fraudster's address can be tracked, this happened in the case of a scammer that impersonated crypto influencer on Twitter where the receiving address was tracked to have come from coinbase exchange, immediately the address was blocked from receiving bitcoin, in that case, if the scammer must have passed KYC, coinbase won't give out his details for no reason. However, in the case of Fiat transactions, I don't think the authority can give out the scammer details, do you think?

[Wipeout2097]

Every asset or businnes have advantages and disadavatages,For me the biggest disadvantage of Bitcoin is that still not leglalized in majority of countries and most of population unaware about the bitcoin.Another disadavantage of Bitcoin is that Bitcoin is not for emegency funds,In case of emergency you can not withdraw Bitcoin may its transaction take long and may you unable to convert in cash due to technical issue.So still need more development to access Bitcoin easily and use it easily as medium of Exchnge.