BitcoinQuestion

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What could break Bitcoin?

In your opinion, what are the factors or events that you think could break BTC? Please try to elaborate your answers and state why and how this could happen.

May,16, 2022

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1 Answer

I'll go over three factors, which in my opinion, could break Bitcoin (BTC). For each, as per the question, I'll elaborate on how it could happen.

  • First is the issue with Quantum computing.  Bitcoin is all digital. What if the claims of a powerful computer, a.k.a. a quantum computer, is able to rip off the encryption keys to all the mined BTC? Bitcoin would all be broken. Of course, specialists argue that quantum energy should focus on asset protection. Yet, we have high energy-minds out there that have exploited several other blockchainsā€¦ripping then them from pure gold to shitcoins.
  • Second is the Store of value nature of Bitcoin. In this case,  if you happen to look at the annual charts for Gold and Bitcoin, both have some semblance. Bitcoin being a good store of value has one downside -  it's not yet recognized by central banks across the globe. This will potentially keep eroding the with of Bitcoin with time as mining progresses towards upper limits. Central bankers have potentially avoided this truth and fought it with rampant regulations. This remains a huge downside with Bitcoin over time.
  • The third is the missing central control versus the forces of supply and demand. This has some linkage with point number two above. But the overarching question here is - who controls Bitcoin? Of course, no one, other than the mining powers and the abilities with foolproof encryption mechanisms. In this scenario, Central banks prefer fiat money which they can manipulate via the tools - fiscal and monetary policies. Since Central banks have no control over it, Bitcoin will be valuable for as long as those holding it perceive it to be valuable. After all, it can only serve a tiny fraction of the global economy. Therefore, over time, Bitcoin will break away with the lapse of time.

October,02, 2022

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