Sunday, October 24, 2021

Risks for Bitcoin

Right now, I can think of the following possible dangers Bitcoin is facing. If I have forgotten anything, just add to the list.

1) A fatal and not fixable flaw in Bitcoins code. Bitcoin has been around for years, so this is very unlikely.

2) Working quantum computers. Should this happen, we face other problems because encryption as we know it would becone obsolete. Including email, banking, ... In my judgement not very likely to happen during the next 10 years.

3) A concerted effort by major nations to ban Bitcoin. Yes, it is decentral. Neverheless, should Bitcoin become outlawed by such an action, this would massivly hinder its development. Very unlikely, that this scenario will come through.

4) Global breakdown of the Internet. Can only happen during a catastrophic event (global war, giant solar flare with power outage, ...). If this happens, the failure of the Bitcoin network is the least of our problems.

Conclusion: Yea, there are risks. But the chances outweight the risks by far.


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