Disadvantage of bitcoin

[Despairo]

Don't use non custodial wallet, when someone find your seed phrase or you lost it, you will lose all of your coins.

Don't use custodial wallet, if the project is exit scam or get hacked, you will lose all of your coins.

Don't use decentralized exchange, the liquidity is very low, you will be forced to sell at discount and can't make a lot profit.

Don't use centralized exchange, you will lose your privacy and there's a chance your coins would be frozen.

The point is, you have a freedom to choose by using Bitcoin and I don't care which one you choose.

[jeraldskie11]

Was going through some post on the forum when I came across this writing in a free signature space which writes “make sure you back up your wallet regularly! Unlike a bank account, nobody can help you if you loss access to your BTC”.


Now a lot of people would imagine the possibilities of losing access to one’s bitcoin in their wallet and there have been several cases of where people loss access to their wallets with massive holdings in it and that is why it is always advisable to back up wallet address regularly.
I’m not trying to down in BTC but at times we should call a spade a spade and accept the fact that aside decentralization that bitcoin offers and its volatility that we all profit from, a lot of people would still want to stick to the traditional banks because it also seems to be one of the safest place to keep our money.

Now my question is, do you think losing all of one’s coins simply because they didn’t have access to their wallet or key is already enough disadvantage for bitcoin against the local banks ?

I was amazed to know that someone believe that the security features of Bitcoin which is keeping the passphrase is a disadvantage. Honestly, that is one of the advantages of Bitcoin because you don't need to show your identity, besides the safety of your funds, you and your family are also safe. Which banks can't give that. If you invest in a bank, you will provide many documents, it is similar to CEX. As a result, since there's someone know that you have a lot of money, you can't walk around alone anymore without bodyguard.

[Spaceman1000$]

Was going through some post on the forum when I came across this writing in a free signature space which writes “make sure you back up your wallet regularly! Unlike a bank account, nobody can help you if you loss access to your BTC”.


Now a lot of people would imagine the possibilities of losing access to one’s bitcoin in their wallet and there have been several cases of where people loss access to their wallets with massive holdings in it and that is why it is always advisable to back up wallet address regularly.
I’m not trying to down in BTC but at times we should call a spade a spade and accept the fact that aside decentralization that bitcoin offers and its volatility that we all profit from, a lot of people would still want to stick to the traditional banks because it also seems to be one of the safest place to keep our money.

Now my question is, do you think losing all of one’s coins simply because they didn’t have access to their wallet or key is already enough disadvantage for bitcoin against the local banks ?

It is a general knowledge in life that anything that has advantage also has a disadvantage, the traditional way of banking has it own disadvantage, where funds of individuals miraculously disappearing without any trace, most times we've had some cases of those nature, even the money save in the bank does not yield any interest, rather they sometimes depreciating because of charges and maintenance fee that the banks deduct.
Of course despite bitcoin volatility, over time you will see your investment yielding profits, it is always advisable that as an investor in Bitcoin you should have your seed phrase always kept somewhere as a secret, so whenever you lose it you can always go ahead to check on it, so you won't lose your investment.

[blckhawk]

With the constant reminder of many bitcoin users, I am sure that there's no way that we will ever forget about having back ups on our wallets too many stories of lost bitcoins due to forgetting their wallet's password to having their funds stolen because they stored it in a custodial wallet and with all of those stuff, I don't think that people are forgetting to have back ups for their wallet. I don't even know why people that don't have their own wallets are still using bitcoin, having your own wallet is like part of the experience of using bitcoin so don't waste that experience.

[EarnOnVictor]

Now my question is, do you think losing all of one’s coins simply because they didn’t have access to their wallet or key is already enough disadvantage for bitcoin against the local banks ?

Of course, we can't call that an advantage, it's advantageous but everyone should understand the risk before taking it, especially when it's self-custody. This could be guarded against and Bitcoin will not steal your money, it's you who is careless about it if lost. There's also an alternative for careless people, they can simply use the custodial wallet, the alternative that harbours the risk of ownership.

Besides, the worst of the disadvantage is when someone dies and his crypto assets got lost with him.

[Obari]

There is no inherent risks with safeguarding Bitcoin as long as the user in question follows

its more about the wording implications vs banks . rather than sounding like advice

maybe wording it "unlike banks your in full control, backup your keys, bitcoin doesnt do bailouts"

Thanks for the heads up. Previous post was saved by mistake and completed now. The fact that OP was making it seem like users handling keys carelessly and losing access to their Bitcoins is a cause for concern when it really isn't.

Maybe it’s not a cause for concern to you but it think it ought to be a cause for concern and I also understand the fact that misplacement of key is a careless act that shouldn’t be considered especially for those that already know the implications of misplacing keys but what about the early adopters who never knew bitcoin would rise to this very height and couldn’t get anymore access to their funds and I think outside backing up your seed phrase or writing it down, I think getting other options of getting access to one’s funds in times like this wouldn’t be a bad idea.

Now my question is, do you think losing all of one’s coins simply because they didn’t have access to their wallet or key is already enough disadvantage for bitcoin against the local banks ?

Besides, the worst of the disadvantage is when someone dies and his crypto assets got lost with him.

Exactly, no one plans to die young or premature, so what if in cases where one dies let’s say in an accident and never disclosed his seedphrase to his family which simply means the holder dies with all his holdings and it wouldn’t be a bad idea if there are other possible ways to get access to the funds.

[Hatchy]

Now my question is, do you think losing all of one’s coins simply because they didn’t have access to their wallet or key is already enough disadvantage for bitcoin against the local banks ?

Bitcoin has proven in so many ways to be much better than the local banking system, but sometimes we shouldn't neglect the fact that it still have its own disadvantages. the banking system had existed far long even before Bitcoin or the Blockchain was invented. the early men had deviced various ways to store their money and at that time, storing money in commercial banks was considered the best method. sooner or later, men noticed that the banks no longer favored them since they were only after the interest they make from loaning out peoples savings and not giving back interest to the owners of the funds.

with the invention of Bitcoin, you can now chose to be your own bank holding the access to your funds. the idea is to keep your keys safe and in a place where you can access them if needed.

banks having access to your funds might be the biggest mistake you've made so far. they make profits of your savings, or defraud you of your money. so you should choose a smarter way to store your funds. a lot of persons loosing their Bitcoin might be out of ignorance, forgetting the fact that your keys is the most vital aspect of your Bitcoin holding.

[Nrcewker]

If someone loses the coin due to the wallet, then it’s completely his fault. Why Bitcoins are be made responsible here? You as a Bitcoin investor, your huge responsibility is to choose the best wallet and make sure you keep the wallet id, seed etc safe. So if you lose the private keys then it only shows you are irresponsible. The people who think this as an disadvantage, don’t deserve to own Bitcoins. This is just a lame excuse to transfer the fault on Bitcoin’s head.

[EluguHcman]

I must say that the above mentioned investors in Bitcoin wasn't just all that but also the enjoyment of the coins decentralization.
However, the stated disadvantage of Bitcoin is not worth alarming at when compared to the fiats.
Think about how the potentiality of Bitcoin beats global inflations but the fiats are answerable to the global inflations.
However, if considering loosing ones private keys to its Bitcoin wallet access as a disadvantage, then it is proportional to fiat bank account holder looses its private details such as mismatched signature and inability to provide personal documents for verifications and identifications as security access.
Else one is denied every trial from its own bank account just as a Bitcoinare unable to provide or identify its security keys. Though, that of fiat is minimal to Bitcoin otherwise this alone does give the fiats more advantages to Bitcoin in the societies of financial exchanges.

[Zlantann]

Both a bitcoin wallet and a bank account are at risk if the owner of the account is not careful enough. Anyone who is careless can lose access to their funds, irrespective of where the money is. In a centralised system, which is the banking sector, if I have money in my account and I'm careless with either my credit or debit card details and it gets into the wrong hands, and the person who has access to it is smart enough to know how to move out funds from my account, and he succeeds in doing that, does my money being in a bank account make it immune from being stolen because of my carelessness?

Both Bitcoin wallets and bank accounts need adequate security because any mistake could lead to loss of funds. OP is not concerned about losing your funds to hackers or scammers but his focus is not having access to your wallet because of loss of password or seed phrase. He is more concerned with having an option to retrieve passwords which conventional banks offer.

I’m not trying to down in BTC but at times we should call a spade a spade and accept the fact that aside decentralization that bitcoin offers and its volatility that we all profit from, a lot of people would still want to stick to the traditional banks because it also seems to be one of the safest place to keep our money.

Just as you have the option of keeping your money in a home safe with a password and bearing all the risk of keeping and protecting it or keeping it with a bank where someone will take care of it on your behalf, this is how the Bitcoin space is. You can decide to be your bank and take care of your funds or keep it in a centralized platform where you have the option of getting back your money even if you lose access to it. But we should also take note that our choices have consequences. But it is better to have control of your funds because history has taught us that third parties are not trustworthy.

[Marvelman]

I’m not trying to down in BTC but at times we should call a spade a spade and accept the fact that aside decentralization that bitcoin offers and its volatility that we all profit from, a lot of people would still want to stick to the traditional banks because it also seems to be one of the safest place to keep our money.

I get that you're not totally on board with Bitcoin yet, Obari.  And hey, I don't blame you.  The banks we've got now seem pretty safe for keeping your cash, right? But if you look closer youll see the system is far from perfect.  There's risks we just accept as normal.  Bitcoin's about fixing those and  its about freedom from all the control and restrictions regular banks have over our money.  Sure, Bitcoin's decentralized - a straight-up revolution.  But revolutions happen for a reason.  Maybe you should open your mind to why this one's happening.  The old system's got flaws.  Bitcoin aims to fix em.  Look into it some more.  You might just get it.

[icalical]

Now my question is, do you think losing all of one’s coins simply because they didn’t have access to their wallet or key is already enough disadvantage for bitcoin against the local banks ?

To be honest for me I don't think it's even a disadvantages, I believe either people who has good amount of funds that is worth extra backup of their private key, and they store it ultra securely, or people who only save small amount of bitcoin that even if they lost access to the wallet. On the other if someone could help us get into our account when we lost the access, it also mean that those people might also be able to give access to stranger who never actually has access to our fund, even the slightest chance it's still a risk.

[Greg Tonoski]

Now my question is, do you think losing all of one’s coins simply because they didn’t have access to their wallet or key is already enough disadvantage for bitcoin against the local banks ?

The same disadvantage with your car (or a key to it), real estate (or a key), banknotes, jewelry, digital signatures/authorizations etc. You could either keep them safe yourself or entrust them to somebody else (e.g. banks).

If anybody thinks that they can't trust themselves enough then they may be correct and trusting a stranger (a bank) is not a solution.

[NewRanger]

Cryptocurrencies are becoming increasingly popular and transactions are increasingly becoming digital. Btw, keeping our password secure is also very important if it doesn't result in losing all the bitcoin money you have.

It has a definite influence, If users actively exchange their currency for bitcoin if I see that's probably where it's headed. If not, I think this will have no impact or be detrimental to the bank. The bank only needs customer funds to enter their institution, even if only for 1 minute as a report that there is a round of money entering their institution and it is recorded.

[fuguebtc]

Both a bitcoin wallet and a bank account are at risk if the owner of the account is not careful enough. Anyone who is careless can lose access to their funds, irrespective of where the money is. In a centralised system, which is the banking sector, if I have money in my account and I'm careless with either my credit or debit card details and it gets into the wrong hands, and the person who has access to it is smart enough to know how to move out funds from my account, and he succeeds in doing that, does my money being in a bank account make it immune from being stolen because of my carelessness?

Both Bitcoin wallets and bank accounts need adequate security because any mistake could lead to loss of funds. OP is not concerned about losing your funds to hackers or scammers but his focus is not having access to your wallet because of loss of password or seed phrase. He is more concerned with having an option to retrieve passwords which conventional banks offer.

As I understand it, what Nwada001 wants to say is, if we are careful in everything from backing up passwords as well as securing bank accounts and bitcoin wallets. It is very unlikely that we will forget our password or lose access. Like me , I know that forgetting my password will make me spend a lot of time going to the bank to ask them to reissue a new password. So I'm always careful with those important data and never forget it. Likewise, we all know that if we lose the seed phrase, we will lose all our bitcoins. We are aware of its importance, I don't think anyone would be so negligent as to lose or forget it. We should be responsible for ourselves instead of relying on others when it is our property.

[ImThour]

It's a fact, you lose your coins when you lose your wallet access. Isn't that an advantage? No one can access your account even you if you lose your secret key.
You be your own bank with Bitcoin and it comes with some drawbacks too, try considering it as a positive. I feel like it's an advantage over Banks in general with Bitcoin.

[Timbulance]

Only disadvantage is having less BTC

[Queentoshi]

Now my question is, do you think losing all of one’s coins simply because they didn’t have access to their wallet or key is already enough disadvantage for bitcoin against the local banks?

Bottom line, every investor in bitcoins should know the risk involved and also the risk with self-custody. Asides the threat and chances of getting your bitcoins taken by scammers and thieves online, it can also be lost to a silly mistake you can just make. There is no care number you can call if you lose your bitcoins, and in examples where you lose access to your wallet, or send to a wrong address, your attempt to try to get it back, and you thinking you are getting help from well-meaning people will only get you scammed more. It will be painful to lose bitcoins to scammers, it will be more painful to lose it to your own mistakes.

[karabiber]

Well, certainly. I'd call it a disadvantage. I'd even make the whole situation bitter and drive the fact that unlike traditional banking, if you get hacked or scammed in crypto you're pretty much bound to destination fucked. You're not getting your money back and your wallet's at risk of getting attacked in the future. The lack of a central government controlling and regulating the intake and outpour of transactions in the bitcoin network is a double-edged sword per se. It's just that at the advent of a more privacy-particular crowd, everyone would highlight the fact that crypto's decentralized and secure over the fact that it practically leaves you for dead when you get forked over by someone from the other side of the planet.

I think this is never a disadvantage for Bitcoin. A key advantage of blockchain technology and cryptocurrencies is that it is really hard to hack or manipulate the decentralized, secure peer to peer network. Not having access to your Private Key is your responsibility and you can't blame Bitcoin for that. If you lose your identity, you can't do banking transactions either. It's the same thing. Keeping an asset safe should be your responsibility, except in the case of natural disasters. For this reason alone, it is wrong to position Bitcoin at a disadvantage compared to the banking system. If you diversify your hedges against risks, you won't need a bank and you can understand Bitcoin better. Finally, the most obvious threats to security issues do not come from blockchain technology or cryptocurrencies like Bitcoin, but from the places where we transact with them.

[mv1986]

Was going through some post on the forum when I came across this writing in a free signature space which writes “make sure you back up your wallet regularly! Unlike a bank account, nobody can help you if you loss access to your BTC”.


Now a lot of people would imagine the possibilities of losing access to one’s bitcoin in their wallet and there have been several cases of where people loss access to their wallets with massive holdings in it and that is why it is always advisable to back up wallet address regularly.
I’m not trying to down in BTC but at times we should call a spade a spade and accept the fact that aside decentralization that bitcoin offers and its volatility that we all profit from, a lot of people would still want to stick to the traditional banks because it also seems to be one of the safest place to keep our money.

Now my question is, do you think losing all of one’s coins simply because they didn’t have access to their wallet or key is already enough disadvantage for bitcoin against the local banks ?

I can only agree with Andreas Antonopoulos on this as he once answered a question about the lack of options to recover lost coins and his answer was that this is not a bug or a weakness, but a feature within the Bitcoin protocol. You can still choose to store your Bitcoin in a locker in a financial institution or choose a bank that obtained the license to offer custodial services for Bitcoin, but this remains your free choice. Those who deliberately maximize the utility of Bitcoin's decentralized nature either do it because they are lazy and then might not have put their own recovery tools in place and lose their Bitcoin wealth in case of an emergency, or they are not lazy and take control over their Bitcoin wealth to unprecedented levels. Nobody can touch it ever, which obviously implies that nobody should be able to recover coins except for yourself and those who you chose to be in that position, too.