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Bitcoin disadvantages

expdom

Member
I will also address some of the negative worries that have been brought up about bitcoin and why they really are not relevant to the type of business we do.


1. Bitcoins Are Not Widely Accepted- this does not matter, our customers typically buy them and send them straight to us so that may be an issue for me to worry about but there is no reason our customers should worry about them not being accepted in other places unless they buy them to use them in other places.


2. Wallets Can Be Lost- your always supposed to save your wallet to a flash drive anyway, if this ever did happen it would purely be the consumers fault, It is far more likely that you will lose the physical wallet in your back pocket than for you to lose your btc wallet either way. On top of that it's recommended to use a new wallet for each transaction and to spread them out between many wallets because wallets and address's are free, you can limit that risk to pretty much nothing buy using a few wallets.


3. Bitcoin Valuation Fluctuates- Bitcoin value fluctuates a little bit but not so much that it ever has made a big difference, it could happen but it's just another could possibly some day situation, as of now Its not a big deal and we will always make up for the customers loss in this situation, its mostly irrelevant because customers almost always buy their bitcoins and send them to me the same day they receive them.


4. No Buyer Protection- (When goods are bought using Bitcoins, and the seller doesn’t send the promised goods, nothing can be done to reverse the transaction) absolutely no different than the payment forms we have been using like western union with a fake name, there is barely any buyer protection in this business, that is what we have this forum for.


, 5. Risk of Unknown Technical Flaws- (The Bitcoin system could contain unexploited flaws) That is pure speculation, the btc economy has been inspected by the greatest economists and tech experts in the world, some for it and some against it but no major exploitable flaws have been found up to this point, it could be argued that it is stronger than the fiat economy we use in the u.s. if we use the disasters caused by credit default swaps, the housing bubble, tech bubble and Ponzi schemes. None of those things are possible in the btc economy because inflation isn't controlled by a central regulatory system like the federal reserve does in our economy. When they want to lower interest rates they print more money, raise them print less, That would be a reasonable system if it was not influenced by politics and public opinion but it is which in my opinion makes the fiat economy weaker than the bitcoin economy. The btc economy has no politics and can't be biased by public opinion in any other way than buying, selling and the confidence or lack there of that causes you to decide which to do.


6. Built in Deflation- This is true, Once all the 21 million bitcoins that can exist in circulation do exist in circulation it COULD cause a wide spread deflation and devaluation in the currency. This will happen in 2040 So I do recommend you be careful with your bitcoins in 2035 or somewhere around there

7- no physical form-(Since Bitcoins do not have a physical form, it cannot be used in physical stores) Unless your planning on paying your gym dealer with bitcoin, this does not matter at all.

8- (Since there is no central authority governing Bitcoins, no one can guarantee its minimum valuation. If a large group of merchants decide to “dump” Bitcoins and leave the system, its valuation will decrease greatly) Something very similar could happen if china decided to dump all of it's u.s. debt at one time but either way it's another possibly could happen one day situation which does not matter to us since our customers buy and sell them very quickly, None of us are trying to use our bitcoin wallets as a savings acct, we are talking about it as a short term currency.

9- One more I hear often is that bitcoin is used for illicit purposes so it must be under government surveillance. That is just speculation, the narcs in the bushes, paranoid way of thinking, anyone who does real research and understands fog and tumblers will understand that you can make it all but untraceable, although you can never make them private exactly you can make them anonymous if your serious about what your doing. It has the added benefit of your face never being on a camera and you have no nosy cashier to deal with. Also as far as them being used for illicit goods, all currencies are, Bitcoins are more widely used in the EU, they even have btc atm's there.


As you can see, none of the usual btc worries are at all relevant to us, these disadvantages are for people planning on using it for primary currency, for savings, Really it's mostly intended for large scale bitcoin investors and it's filled with could maybe possibly happen one day situations. In my experience The only people who ever have anything bad to say about using btc for payment are those who have never tried to use bitcoin for payment or sometimes those who can't figure out how to use bitcoin at all.
 

hurricane

Head Moderator
Member
great post. to be perfect honest i have no experience with this but reading this post makes me losing any type of interest in learning more about it
 

Buddhabuilder

Community Leader
VIP Moderator
Great Post.

I was a newbee, but now I have my wallet on my phone and a direct number to buy btc locally with cash.

It is the way of the future....
 

expdom

Member
Gotta watch for hackers too. They'll steal your shit.

IF that happens its our own fault, that is what cold storage wallets are for, they are not connected to the internet in any way, your even supposed to save them to a flash drive so unless a hacker is going to find my super secret hiding spot he's not going to get it.
 

expdom

Member
Great Post.

I was a newbee, but now I have my wallet on my phone and a direct number to buy btc locally with cash.

It is the way of the future....

I'm not sure I would keep one on my phone unless its for very short term storage, you don't want to keep to many coins on it or anything, If you use them frequently the cold storage wallets are the way to go.
 

expdom

Member
great post. to be perfect honest i have no experience with this but reading this post makes me losing any type of interest in learning more about it

What's really cool is they could never really regulate or create strong legislation to stop it, There is no central authority so there is nobody to enforce such legislation or regulation. They may be able to put stress on coinbase or circle but there will most likely always be a way to use btc.
 
The biggest problem I see with btc are the price fluctuations. You have control over pretty much everything you do, but you can't control if you buy a hundred dollars worth then the next day when you need to buy something it's only worth 90. Used to use btc for online purchases (cough cough ) but tired of paying more than expected because they lost value over night.
But still great for many things

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expdom

Member
The biggest problem I see with btc are the price fluctuations. You have control over pretty much everything you do, but you can't control if you buy a hundred dollars worth then the next day when you need to buy something it's only worth 90. Used to use btc for online purchases (cough cough ) but tired of paying more than expected because they lost value over night.
But still great for many things

Sent from my VS986 using Tapatalk

I credit the customer with the value on purchase date, not the value when I receive them, if you use a different source than it's best to buy an extra $10-$15 worth just in case they do lose that little bit of value, it's one of the reasons they all give a discount when using bitcoin. A few years ago it may have been a little more worrying but now I have never seen them lose or gain more than $15 in a day and that is even pretty extreme for the current market.
 

Buddhabuilder

Community Leader
VIP Moderator
I'm not sure I would keep one on my phone unless its for very short term storage, you don't want to keep to many coins on it or anything, If you use them frequently the cold storage wallets are the way to go.

I understand where you're coming from. For me, I buy the coins I'm going to spend in a day or two, and there is very little in my wallet between transactions. I use blockchain which is pretty anonymous.
 

Xin

New member
Yeah the fluctuations are a pain but the thing with Bitcoins are they rise and go low. I've lost in the past but also gained $700 once due to increase!
It's still very stable and doesn't fall too low.
 

expdom

Member
I understand where you're coming from. For me, I buy the coins I'm going to spend in a day or two, and there is very little in my wallet between transactions. I use blockchain which is pretty anonymous.

That's the way to do it then, I can't see anything going wrong that way.
 

21infantry

Active member
Unless you are buying or dealing in major weight, Bitcoin is just a pain in the butt to track. LE isn't tracking small timers nor does it have the resources or the funding to track things like this. They looking for activity that probably exceeds millions of dollars. Remember this something like only 40% of murders are solved, I'm sure its close to 99% of Illegal activity is neither detected, investigated or followed up on. Most LE rely on good luck and your bad luck to enforce laws.
 

expdom

Member
Unless you are buying or dealing in major weight, Bitcoin is just a pain in the butt to track. LE isn't tracking small timers nor does it have the resources or the funding to track things like this. They looking for activity that probably exceeds millions of dollars. Remember this something like only 40% of murders are solved, I'm sure its close to 99% of Illegal activity is neither detected, investigated or followed up on. Most LE rely on good luck and your bad luck to enforce laws.

That's a very good point, they could probably track bitcoins from inception, to the customers wallet, to the vendors mask wallet, to his fog wallet which will mix the coins with 50 other bitcoin users coins, to the vendors back up tumbler service which further splits it by an exp of 50 which = 0.004. So they would have to track that same coin which means they would have to follow that coin thru 250 incremental transactions that get paid out in sets of 3 random transactions of random amounts. So that means once they figure out what they are originally looking for they would have to track it thru 750 steps at minimum, the man hours would be crazy. IF they decide to do that they are not getting many of us and if they decide to use such deep resources I think they will be looking for the heroin dealer on dream market or abraxas not the ugl.
 

21infantry

Active member
That's a very good point, they could probably track bitcoins from inception, to the customers wallet, to the vendors mask wallet, to his fog wallet which will mix the coins with 50 other bitcoin users coins, to the vendors back up tumbler service which further splits it by an exp of 50 which = 0.004. So they would have to track that same coin which means they would have to follow that coin thru 250 incremental transactions that get paid out in sets of 3 random transactions of random amounts. So that means once they figure out what they are originally looking for they would have to track it thru 750 steps at minimum, the man hours would be crazy. IF they decide to do that they are not getting many of us and if they decide to use such deep resources I think they will be looking for the heroin dealer on dream market or abraxas not the ugl.
Yes sir, now let's put that in perspective. It's such a huge task and so costly that departments would bust there budgets in two weeks. Unless there very high profile cases, or going to put a huge dent into a existing problem, Le basis there limited resources on expenditure vs reward. Much easier to watch your corner drug dealer out in the open then dig and investigate and put a case together. Bitcoin only adds to the difficulty of going that route. And financial transactions only aid a case not a reason to build a case. Al capon was the prime example of this. They had his books but couldn't tie it with bootlegging, all they could do was Tie it to tax evasion and with bitcoin it's actually not even a Fiat currency so only has a perceived value. its a governments worse nightmare.

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expdom

Member
Yes sir, now let's put that in perspective. It's such a huge task and so costly that departments would bust there budgets in two weeks. Unless there very high profile cases, or going to put a huge dent into a existing problem, Le basis there limited resources on expenditure vs reward. Much easier to watch your corner drug dealer out in the open then dig and investigate and put a case together. Bitcoin only adds to the difficulty of going that route. And financial transactions only aid a case not a reason to build a case. Al capon was the prime example of this. They had his books but couldn't tie it with bootlegging, all they could do was Tie it to tax evasion and with bitcoin it's actually not even a Fiat currency so only has a perceived value. its a governments worse nightmare.

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Good points but I don't think you can make that exact distinction, since we are not on the gold standard any more our fiat currency isn't backed by anything but the fed which does not back it with anything at all except the ability to print more currency and manipulate interest rates. Our currency is also just a perceived currency, what makes it most valuable is it's wide use and other countries having the ability to buy so much of our debt. more u.s. dollars are spent in other countries than in the u.s. but it may not be that way for very long, how much world wide confidence can there still be in it? Not long ago it was discussed in china that the world may have to start building a non Americanized reserve currency because the last few decades have shaken the worlds confidence in the long term sustainability of our financial system. I would have to say I agree, there does have to be a new system not controlled by a few wealthy politicians serving the few people on the top. Basing our system on a flawed theory like trickle down economics was the last straw for a great deal of people, it is a proven fact that is useless for the people on the bottom. It is in it's peak value when the people at the very top get new dollars, by the time it gets to the people on the bottom it is devalued to a point of hardly being useful at all.
 

expdom

Member
Yes sir, now let's put that in perspective. It's such a huge task and so costly that departments would bust there budgets in two weeks. Unless there very high profile cases, or going to put a huge dent into a existing problem, Le basis there limited resources on expenditure vs reward. Much easier to watch your corner drug dealer out in the open then dig and investigate and put a case together. Bitcoin only adds to the difficulty of going that route. And financial transactions only aid a case not a reason to build a case. Al capon was the prime example of this. They had his books but couldn't tie it with bootlegging, all they could do was Tie it to tax evasion and with bitcoin it's actually not even a Fiat currency so only has a perceived value. its a governments worse nightmare.

Sent from my SM-G800F using Tapatalk

Good points but I don't think you can make that exact distinction, since we are not on the gold standard any more our fiat currency isn't backed by anything but the fed which does not back it with anything at all except the ability to print more currency and manipulate interest rates. Our currency is also just a perceived currency, what makes it most valuable is it's wide use and other countries having the ability to buy so much of our debt. more u.s. dollars are spent in other countries than in the u.s. but it may not be that way for very long, how much world wide confidence can there still be in it? Not long ago it was discussed in china that the world may have to start building a non Americanized reserve currency because the last few decades have shaken the worlds confidence in the long term sustainability of our financial system. I would have to say I agree, there does have to be a new system not controlled by a few wealthy politicians serving the few people on the top. Basing our system on a flawed theory like trickle down economics was the last straw for a great deal of people, it is a proven fact that is useless for the people on the bottom. It is in it's peak value when the people at the very top get new dollars, by the time it gets to the people on the bottom it is devalued to a point of hardly being useful at all.
 
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