Why Bitcoin is doomed to fail

Bitcoin: What You're Not Being Told
Bitcoin: What You're Not Being Told – 03:32
— StormCloudsGathering

Bitcoin major design flaw, that is inherent to the system, is the way it protect itself from used being able to use own Bitcoin twice. The way it do is to maintain blockchain, witch is list of all transactions with every Bitcoin since beginning to this second. And that list for every Bitcoin users on the world! Add there security hashes and you get exponencial grown of size of this blockchain.
In August 2012 is was 2GBy.
In August 2013 it was 9GBy.
…and right now we are at  11,9GBy.
As anyone can see, with such exponencial grow of the size (the more Bitcoin is used, the more the blockchain grow) it this unsustainable:

Bitcoin Blockchain Size

For example on Bitcoin web they do admit, that it will be necessary to use 14TBy (!) space on your HDD for each 85 days of using Bitcoins, it they are used on the same scale as Visa cards:
https://en.bitcoin.it/wiki/Talk:Scalability#Disk_space

Now everyone who wants to use Bitcoin, it must todays download to own harddrive whole 11.9GBy blockchain and the size of the blockchain grow exponentialy and soon it can reach hundreds of gigabites and then terabites, witch means that for average user it will become useless. And when this happens, then whole good Bitcoin idea get flushed down the toilet, together with the wealth some people are investing into Bitcoins.

Even that I like Bitcoin very much, it is obvious, that this major design flow must be fixed and removed. Yet on the solution was not reached agreement even between the developers, let alone the fix is getting implemente.
And because possible solution with "supernode" (sometling like a bank for Bitcoins) open Bitcoin to the attacked and later controled by governments, because such "supernode" will not be anything you can run in your garage. The harddisks requirments will be nothing except really extreme. For example the promised (not materialized) 60GBy drives it will eat like crazy. If it will be used like Visa, then it is need 14TBy of HDD space for each 85 days, so that translate to 239 pieces of 60GBy HDDs. To put this into perfpective, it will require that 2,8 of these HDDs will be added to the system each DAY!
This is not sustainable by any measures. Just the harddive failures nail end to such "supernode"… and then Bitcoins at all.

Imagine then that there is a catastrophy (gov sieze the "bank", fire, flood... sabotage) and then everyone will lose everything they have in Bitcoins. And all this does not take into account that these 60GBy drives are not there and we have no idea how reliable they are...

Security expert Dan Kaminsky's analysis of the scalability problem:
Bitcoin: What You're Not Being Told | StormCloudsGathering

I posting this a warning to these people:


litecoin mining 40pcs R9 290

…because it is irracional to see that everyone is overlooking the serious design flaw since the start of Bitcoin. So mine happily, but remember get out fast, or you lose you shirt when panic happens 😉

(China ban - Bitcoin fall from $1200 to $200 ... luckily it recover and get back to $900, but as warning it is prophetic)

While what all is said is true, you don't need to download the blockchain. There are many online wallets that have 2 step verification that are very secure and require no application or blockchain download. I'd imagine this would become the norm. I personally keep my wallets on my PC, with the blockchain for every cryptocurrency I currently mine its hovering around 40GB.

  • 2
    Posts
  • 1219
    Views