Questions about the security (reliability) of BitCoin

Question

Fintech

Recently, I began to look at the BitCoin currency and other cryptocurrencies. Next, I will write "Now <parameter> = <value>", so that if suddenly these questions are opened in 5 years, it will immediately be clear about the time of the questions before the "Date of the question" field is viewed. I do not have a financial education or operational financial knowledge, but I see that BitCoin is growing, there is no confidence in the dollar, the euro will not grow, therefore it is now profitable to buy BTC. But you need to make sure that this currency is reliable, in connection with which the questions arise - what are the weaknesses of BitCoin and cryptocurrencies in general?
Now one block contains 25 BTC, the exchange rate is 940 USD/BTC, the difficulty level is high, which makes mining on home computers unprofitable.
0. Is it worth taking a consumer loan of 300 thousand rubles. under 14,
1. It takes a short time to generate a wallet address, so this operation has little cryptographic complexity. I am using the MultiBit client. Do I need to periodically launch MultiBit so that my wallet does not fall out of the BTC chain? What if I create a "million" BTC wallets, will the system burst?
2. In the system, the role of banks is mainly played by servers of individuals: home, VPS, Dedicated, etc., whose main task is to identify and block cryptographically incorrect input data. Some of the servers are additionally Mining Pools. When creating a server, it takes 1 day to synchronize transactions for the last year (?) on an average server. The minimum transfer transaction, as far as I know, is 0.01 BTC without a commission and 0.00010001 BTC with a commission (of which 0.0001 BTC is a commission). If the number of transactions starts to increase greatly, will the system burst?
3. If we suppose some political and economic phenomenon occurs, let's say the US will ban BitCoin and all providers will set filtering of packets containing BitCoin requests and transactions. Let's say the quote falls from 940 USD/BTC to 300-400 USD/BTC. Will Americans be able to withdraw their bitcoins through Tor or another encrypted network?
4. A question about currency exchanges even before the advent of cryptocurrencies. Could it be that if you overtake from RUR -> BTC on another exchange BTC -> USD on the third USD -> RUR that you can stay in the winnings?

Answer 1

Is it worth it to take a loan to invest in MMM, it’s worth it, the one who follows the market and jumped off in time got his + 1000%, the same with bitcoins, the course was caught up, the actual cost is clearly not high. In the context of buying for a hundred years, and if it doesn’t close, then it makes sense, just raise money, well, I don’t know, but have you tried to work?

Answer 2

0. No, of course not. You shouldn't take loans at all. Unless, for business, when there is a clear plan for the return of investments.
1. In fact, any wallet can be called already created from the very beginning. What is "generation" of a wallet is the generation of a random private key, from which the number of some (again, random) wallet is obtained. This does not affect the blockchain in any way, your wallet will only light up there when a transaction is made.
2. There are no banks in the Bitcoin system at all. There are only wallets with one or another amount of coins. To work with bitcoin, it is not necessary to download the entire chain from the zero block (now, if I am not mistaken, this is more than 10GB), just some last part is enough. The whole chain is needed for 100.000% validation.
3. Of course they can.
4. Theoretically, it is possible, but usually there are commissions for withdrawing (sometimes for depositing) funds from the exchange. Because of them, this is practically impossible. Plus, as already mentioned above, confirmation of BTC transactions takes some time, and rates change very quickly.
My personal opinion is that BTC is suitable for long-term investments. Since its inception, the rate has only been growing and the potential for growth is gigantic.
ps the expression "Now one block contains 25 BTC" is incorrect, blocks do not contain bitcoins, they contain transactions. And 25 BTC (+ commissions from transactions) is the reward to the miner for finding the block.
However, the transaction of crediting these funds to the miner's account, if I'm not mistaken, is also included in this block.

Answer 3

0. I would not - a pure lottery
3. Yes, even a banal VPN, of course they can.
4. Yes, it’s over (again, a lottery, but not like that anymore), but you need to remember about the BTC time lag

Answer 4

It hurts not to kick, I'm a fan.
Costs. Because money is worth absolutely nothing, and this is the most reasonable investment at the moment (even for $900).
But there is one "but". It is worth doing this if you realize that in the next 10 years you will not touch this money. Do you guarantee that within 10 years you will not withdraw this money?
If for 10 years you are ready to work hard giving back the 300 thousand borrowed, then welcome! I'm serious, other readers know that I'm a fan, and that this text is not an offer or a call to action. This is where I recommend losing 300k for a small risk. (I will emphasize the word lose, because there is a sense for those who are ready to "lose" - because waiting 10 years is akin to loss). Why am I so sure? Because of the "blockchain" technology, which simply cannot physically evaporate anywhere - if at least someone has a copy of the blockchain, bitcoin is alive - everyone who wrote here before is simply unable to grasp it.
Yes, it takes a little time, but the cryptographic complexity is very high - high enough that 2 burned solar systems are not enough power to decrypt. Checking the validity of the created wallet is a very simple task for the processor using the public key.
MultiBit (or any other client) can be permanently deleted altogether. But before that, do not forget to make a backup copy of your wallet file (see the multibit instruction) - the approximate size is about 60 kilobytes, it stores the encrypted private key.
Create at least a billion wallets if you have a hard disk of sufficient capacity - the bitcoin system is designed in such a way that while there is no money on these wallets, their size in the public blockchain is: 0 bytes, i.e. you can create wallets even without Internet access, because. this is the cryptographic standard.
The system will not burst regardless of the number of transactions - such is the design. There are certain limits associated mainly with Internet traffic, but according to my elementary mathematical calculations (the correctness of which was confirmed by other programmers) - 1.7 billion transactions per month will take place with the current worldwide Internet traffic without any problems at all. By the time we cross at least 1 billion transactions per month, the Bitcoin system will be known to TOO many developers, the commissions for only mining will be SUPER-PROFITABLE, this is only 1% of the impact that this technology will reproduce, but so far, with all our efforts, we will not even artificially achieve such a result - here you need to develop such a user base ...
Stop. Why do you need to withdraw Bitcoins, we agreed that you will forget about them for 10 years. I do not play this way.
Well, okay, to the topic - Bitcoin politics is not terrible, and even worldwide catastrophes - those Bitcoin know-it-alls who are afraid of them are incompetent (not in cryptography and not in general, but incompetent only in this matter), no matter how smart they would seem ... Let's imagine that a nuclear war broke out - 99.9% of people died, only 10 thousand people remained on earth hiding from radiation. If out of these 10 thousand people there are at least 100 and better than 1000 reliable people who around the world have hidden a synchronized blockchain in different places, then Bitcoin is not even afraid of a power outage that followed a nuclear disaster.
But remember that you do not need to keep blockchain at home in order for your funds to be safe (unless you are preparing for a nuclear catastrophe). It is enough to have a backup copy of your private key (or more often it is called a backup copy of a bitcoin wallet - the difference is that a bitcoin wallet is an encrypted file in which an encrypted private key is stored - to decrypt you need to burn 2 suns if you have a password of 9 characters with special -symbols).
The only thing is if trouble happens with the ocean lines of optics, then the blockchain can split in half - this is not good, but believe me, even if this happens, bitcoin specialists already have special satellites capable of broadcasting the updated blockchain around the world. (remember satellite fishing? similar technology used, oops it was a secret from the usa - please don't kill me, i won't do it again)
This is called arbitration. You can earn on this. But good scripts are needed and this operation will have to be repeated several times. the percentage gain is very small. Usually, RUR - BTC, BTC - RUR (i.e. round trip) are involved in arbitration, but on different exchanges - if you buy in large amounts - then on the exchanges, when a certain mark is reached, the rates will skyrocket and it will no longer be profitable for you ( i.e. it’s like searching for deposits - they found one, pumped out oil, and at this time you are already inventing methods for mining in other deposits)
I ask everyone who studies Bitcoin to read less Runet, and more Anglonet, there is more constructive, it’s especially hot now on the subreddit bitcoin, but you need to know English, without it you won’t master bitcoin - learn to understand google translate

Answer 5

Article in English Cryptocurrency for Dummies: Bitcoin and Beyond about how the cryptocurrency works. It will help you to focus on the topic.