posted on Apr, 2 2013 @ 05:21 PM
Originally posted by ChaoticOrder As the poster above me mentioned, the weakest points are the exchanges...
Another major weakness for Bitcoin is that it's the first major crypto-currency, and thus a better crypto-currency could be designed based on the
lessons learned from the ongoing Bitcoin experiment.
It's a common phenomenon in business; the pioneer does all the hard work and heavy investment, while a savy copy cat waits and watches, then makes a
move when the time is right. Apple has been hugely successful at this, so much so that plenty of people think they invented the mp3 player and the
If/when a better crypto-currency comes along, then many of the people who actually use Bitcoin for transactions would switch to using the improved
option. This would be the beginning of the end of Bitcoin; the price would begin to fall, never to rise again.
I'm sure there are still people out there who use Windows 95 or MS Dos 5.0 but the point is, if the state of the art progresses, it would become a
next to worthless curiosity/hobbyist thing, more or less back to where it started out at. And for those who don't know, no, Bitcoin really can not
change much with the times. The infrastructure around Bitcoin can adapt and develop, but Bitcoin itself is a protocol, and that protocol, as far as I
can tell, can't much be changed.
There are already some 'me too' Bitcoin copies but so far no clearly superior option. But the founders of these currencies always seem to make sure
they generate a hoard of coins for themselves before they turn these currencies loose on the public; thus there is always a major major financial
incentive out there for somebody to come up with an improved crypto-currency, which all but assures that it will happen sometime in the next few
In other words, the crypto-currency that makes Bitcoin obsolete is probably already in development.