Informal survey: What are Bitcoin's biggest challenges?

[bridgesro]

Like the title says, I'm conducting an informal survey of Bitcoin's biggest challenges. Specifically, I'd like to hear what you all think are the biggest challenges in three categories:

• Technically - As in the Bitcoin client, the operation of the system, mining, security, etc.
• Culturally - As in mainstream acceptance, user and merchant adoption, Bitcoin's image (or image problem), etc.
• Practicality - As in the practical uses and difficulties in Bitcoin (a good example would be people who worry over wait times for confirmations).

There's no need to limit your answers to one per category; feel free to pose as many as you like for each category or post answers to just one or two of them. Your answers can be as detailed or straightforward as you please.

Thanks, and I look forward to reading your responses!

[beetcoin]

you might need to clarify the question a bit more, because there are two different goals with bitcoin. one is to make the price go higher, and the other is to get as many people to adopt it.

[bridgesro]

you might need to clarify the question a bit more, because there are two different goals with bitcoin. one is to make the price go higher, and the other is to get as many people to adopt it.

Either goal is fine if that goal is what you think has the biggest challenge.

For instance, if you think the primary goal of Bitcoin is a high coin value, perhaps you think its biggest challenge lies with security breaches at the exchanges that cause the price to crash. If you think the primary goal is user adoption, perhaps you think its biggest challenge is getting more big name companies to accept it as a currency.

Whatever you think its goals and challenges are is fine for an answer.

[Ibitcoinloan]

It has no problems, it's ermerging as the first legitimate global currency unit.

It's value is tied only to the trust factor of it's growing user base.

US Congress report states, bitcoin similar to a currency based on a gold standard.

Big tech players understand it's value growth.

Heavy new laws may limit it's acceptance in some regions, however only 10% acceptance level means a $50k usd value.

Exchanges will be regulated in some regions, others it will be unregulated.

Soon you will have a large network of legal btc changers and they will simply follow money transmitter laws already in place in most areas.

My opinion.

[AliceWonder]

Biggest challenge is people do not understand why they need it, and many do not understand technology enough to use it securely.

As long as viruses remain a common problem on end user PCs, local clients are dangerous for them.
As long as web wallets operate without enforcement of basic security protocols, web wallets are dangerous too.

Both issues need to be solved.

[michaelwang33]

Biggest challenge is people do not understand why they need it, and many do not understand technology enough to use it securely.

As long as viruses remain a common problem on end user PCs, local clients are dangerous for them.
As long as web wallets operate without enforcement of basic security protocols, web wallets are dangerous too.

Both issues need to be solved.

I think that people do not understand how much bitcoin can save both merchants and consumers over the long run verses other payment methods.

[TRex95]

Biggest challenge is people do not understand why they need it, and many do not understand technology enough to use it securely.

As long as viruses remain a common problem on end user PCs, local clients are dangerous for them.
As long as web wallets operate without enforcement of basic security protocols, web wallets are dangerous too.

Both issues need to be solved.

I think that people do not understand how much bitcoin can save both merchants and consumers over the long run verses other payment methods.

This is why domains like bitcoin.org are so important because the website really try's to educate people about bitcoin and  to get them started using bitcoin instead of profiting off of selling the domain.

[tinof]

Regulation is the biggest road block.

[Chef Ramsay]

It has no problems, it's ermerging as the first legitimate global currency unit.

It's value is tied only to the trust factor of it's growing user base.

US Congress report states, bitcoin similar to a currency based on a gold standard.

Big tech players understand it's value growth.

Heavy new laws may limit it's acceptance in some regions, however only 10% acceptance level means a $50k usd value.

Exchanges will be regulated in some regions, others it will be unregulated.

Soon you will have a large network of legal btc changers and they will simply follow money transmitter laws already in place in most areas.

My opinion.

Can you sign it? Big time Homie telling it how it is. I just differ on your hypothesis on it being similar to a gold backed standard cause it'll wipe it out as that. PMs will be a laugh. Yeah I holdem.

[Malin Keshar]

Some challenges:

-decentralization
-The risk of bitcoin collapsing after each halving
-Bitcoin need internet
-Conversion fiat-bitcoin

[galbros]

Like the title says, I'm conducting an informal survey of Bitcoin's biggest challenges. Specifically, I'd like to hear what you all think are the biggest challenges in three categories:

• Technically - As in the Bitcoin client, the operation of the system, mining, security, etc.
• Culturally - As in mainstream acceptance, user and merchant adoption, Bitcoin's image (or image problem), etc.
• Practicality - As in the practical uses and difficulties in Bitcoin (a good example would be people who worry over wait times for confirmations).

There's no need to limit your answers to one per category; feel free to pose as many as you like for each category or post answers to just one or two of them. Your answers can be as detailed or straightforward as you please.

Thanks, and I look forward to reading your responses!

Technically - the ever increasing size of the blockchain; risk of opportunistic behavior by someone like Ghash.io - not saying Ghash is bad just that they could engage (or were close to being able to engage) in exploitive behavior; possibly not enough coins

Culturally - regulation and how new users are such easy scam targets; confusion over too many alt coins

I think we are past bitcoin's image problem.

[yayayo]

I think the biggest challenge is technically, because all other things depend on it.

The protocol and reference implementation must be secure and usable. If that is the case, all other cultural and practical problems will be solved by third parties - companies and everyday users alike. The bitcoin ecosystem will evolve organically without the need for intervention or lobbying, because it's simply useful. The Internet is a perfect blueprint for that kind of evolution.

ya.ya.yo!

[minerpumpkin]

Keeping Bitcoins safe is too challenging as of now. The regular person who might want to use Bitcoin may encounter too many Scams. There needs to be something that makes sure that stealing peoples private keys or tricking them into transferring their funds to the thief doesn't happen anymore. Things like Trezor are a great first step. But they're still not easy or attractive enough.

[profitofthegods]

For me this is an easy one:

Biggest challenge is the wild price fluctuations. As long as this is happening it means that only people with a very strong idealistic belief in Bitcoin and people wanting to speculate on the price of Bitcoin will be interested in it - the regular public will never buy as long as they don't have a clue how much their coins will be worth tommorrow let alone next month.

The second biggest challenge is the long transactions times.

[minerpumpkin]

The second biggest challenge is the long transactions times.

Transactions are almost instant. If the transaction has propagated through the network it is practically safe to be confirmed. Only being definitely confirmed takes ~10 minutes. Credit Cards actually do the same thing, the money isn't being paid until days, weeks, or even months after the sale has been made! They're much slower!

[profitofthegods]

The second biggest challenge is the long transactions times.

Transactions are almost instant. If the transaction has propagated through the network it is practically safe to be confirmed. Only being definitely confirmed takes ~10 minutes. Credit Cards actually do the same thing, the money isn't being paid until days, weeks, or even months after the sale has been made! They're much slower!

Interesting point, but from the end-user perspective rather than technicalities I know that I do often have to wait quite a while for Bitcoin payments to go through, whereas I don't have to wait for credit card or paypal purchases.

[minerpumpkin]

The second biggest challenge is the long transactions times.

Transactions are almost instant. If the transaction has propagated through the network it is practically safe to be confirmed. Only being definitely confirmed takes ~10 minutes. Credit Cards actually do the same thing, the money isn't being paid until days, weeks, or even months after the sale has been made! They're much slower!

Interesting point, but from the end-user perspective rather than technicalities I know that I do often have to wait quite a while for Bitcoin payments to go through, whereas I don't have to wait for credit card or paypal purchases.

Do you? If I use Wallets like MultiBit or Electrum, the actual transaction goes through within 0.5-2 seconds or so. PayPal takes at least that long. I sometimes watch the spinning 'P' for 5-10 seconds. Same with credit card payments!

[profitofthegods]

The second biggest challenge is the long transactions times.

Transactions are almost instant. If the transaction has propagated through the network it is practically safe to be confirmed. Only being definitely confirmed takes ~10 minutes. Credit Cards actually do the same thing, the money isn't being paid until days, weeks, or even months after the sale has been made! They're much slower!

Interesting point, but from the end-user perspective rather than technicalities I know that I do often have to wait quite a while for Bitcoin payments to go through, whereas I don't have to wait for credit card or paypal purchases.

Do you? If I use Wallets like MultiBit or Electrum, the actual transaction goes through within 0.5-2 seconds or so. PayPal takes at least that long. I sometimes watch the spinning 'P' for 5-10 seconds. Same with credit card payments!

Yes. But I'm not talking about how long until my own wallet tells me that a transaction has been broadcast, I'm talking about how long it takes until the person receiving the coins accepts that I've sent them and processes the purchase.

[screwUdriver]

The second biggest challenge is the long transactions times.

Transactions are almost instant. If the transaction has propagated through the network it is practically safe to be confirmed. Only being definitely confirmed takes ~10 minutes. Credit Cards actually do the same thing, the money isn't being paid until days, weeks, or even months after the sale has been made! They're much slower!

Interesting point, but from the end-user perspective rather than technicalities I know that I do often have to wait quite a while for Bitcoin payments to go through, whereas I don't have to wait for credit card or paypal purchases.

Do you? If I use Wallets like MultiBit or Electrum, the actual transaction goes through within 0.5-2 seconds or so. PayPal takes at least that long. I sometimes watch the spinning 'P' for 5-10 seconds. Same with credit card payments!

Yes. But I'm not talking about how long until my own wallet tells me that a transaction has been broadcast, I'm talking about how long it takes until the person receiving the coins accepts that I've sent them and processes the purchase.

For most transactions it would likely be just as long as it takes for the transaction to be propagated throughout the network. Since it would be expensive to attempt a double spend attack, it would likely be unprofitable to do so on smaller transactions, therefore merchants could accept a 0/unconfirmed transaction for smaller purchases.

For something that will be shipped but was purchased online: a merchant could start work on the order (gathering and packaging the merchandise) when the TX is 0/unconfirmed and just not ship the order unless the TX has "x" confirmations (the time from placing an order to actually shipping is usually several hours at the very minimum anyway so it should have several confirmations by then anyway).

[profitofthegods]

The second biggest challenge is the long transactions times.

Transactions are almost instant. If the transaction has propagated through the network it is practically safe to be confirmed. Only being definitely confirmed takes ~10 minutes. Credit Cards actually do the same thing, the money isn't being paid until days, weeks, or even months after the sale has been made! They're much slower!

Interesting point, but from the end-user perspective rather than technicalities I know that I do often have to wait quite a while for Bitcoin payments to go through, whereas I don't have to wait for credit card or paypal purchases.

Do you? If I use Wallets like MultiBit or Electrum, the actual transaction goes through within 0.5-2 seconds or so. PayPal takes at least that long. I sometimes watch the spinning 'P' for 5-10 seconds. Same with credit card payments!

Yes. But I'm not talking about how long until my own wallet tells me that a transaction has been broadcast, I'm talking about how long it takes until the person receiving the coins accepts that I've sent them and processes the purchase.

For most transactions it would likely be just as long as it takes for the transaction to be propagated throughout the network. Since it would be expensive to attempt a double spend attack, it would likely be unprofitable to do so on smaller transactions, therefore merchants could accept a 0/unconfirmed transaction for smaller purchases.

None of that changes the fact that I do actually, in real life use, have to wait for transactions to be confirmed. Perhaps it means that a significant part of the reason for this is due to merchants and so on rather than the Bitcoin code or network, but the end-user only cares about what they experience, not who is at fault, so I would still put this as the number two challenge facing Bitcoin.

For something that will be shipped but was purchased online: a merchant could start work on the order (gathering and packaging the merchandise) when the TX is 0/unconfirmed and just not ship the order unless the TX has "x" confirmations (the time from placing an order to actually shipping is usually several hours at the very minimum anyway so it should have several confirmations by then anyway).

Yes of course it doesn't relate to all types of transaction, but I still see it as a signifiant issue.

I would perhaps change my assessment to put transactions into third place, however, as I've just thought of another challenge which is perhaps bigger - the fact that most people actually really like the consumer protection they get from banks and credit cards and so on, such as chargebacks and being re-imbursed if they are a victim of theft or fraud. Convincing regular people that having control over their own money and taking their wealth out of the hands of the banksters is more important than these consumer protections is quite a big challenge.