June 22, 2021

News Cymru

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The Biggest Flaw with Bitcoin

So someone sent me a link of a company/technology. Long story short you could allocate something like a memory stick with a value you choose and give that memory card to someone to pay for the goods you want.

Sounds absolutely amazing.

You have your net worth in a crypto wallet. When you want to spend your Bitcoin you allocate the value of the product you are buying to this memory type stick and give the stick to the receiver. They can then take the Bitcoin from the stick and put that Bitcoin in their wallet

Again, that sounds amazing

The only thing you need is a stock of memory sticks. (But in theory, you will be also be receiving memory sticks from other people, so hopefully we won’t have to buy that many sticks).

In a way Bitcoin is like cash. With cash you keep the notes on your house. With Bitcoin you keep memory sticks in your house.

The flaw of Bitcoin is this

Someone may invalidate a Bitcoin/Bitcoins that you have, remotely. You have the Bitcoin but for some reason it may wash-out that the coin you own should never have been produced, it was allocated to two people at the same time or perhaps a third party simply wants to seize that Bitcoin.

So while Bitcoin can be like cash, people can not remotely take your cash from you. The closest thing we have is when new bank notes or coins are introduced.

And that is a major flaw of Bitcoin

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