And that’s where 4 comes in. In financial terms, a short position is a way to bet against the value of the underlying commodity. If I inherit a large sum of money, I have incentive to ensure that my large sum of money increases or at least doesn’t decrease in value in the easiest, least risky way possible. You have to loosen the requirements somehow. If no one is willing to do that, then bitcoins have no value.
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The enormous run-up in bitcoin’s price this year has spurred talk that it’s a bubble bound to burst. That sounds ominous. But take heart: If bitcoin’s bubble pops, the pain likely will be restricted to those who bet on the cryptocurrency — and not harm the wider market and economy very. Compared to past investment manias that came to grief, such as the s dot-com craze and the housing boom of the past decade, a bitcoin rout likely would be of small magnitude. Certainly, bitcoin’s gains have been breathtaking enough to invite worry.
By using our site, you acknowledge that you have read and understand our Cookie Policy , Privacy Policy , and our Terms of Service. My father just asked me: What happens if the bitcoin people decide to shut down the website, what happens to my bitcoins? I didn’t know. The ledger of Bitcoin balances is stored on a network comprised of thousands of individual computers around the world. Anyone can run the Bitcoin program which contributes to that network and stores the record of every transaction that has ever happened. This is what is called a peer-to-peer network or a decentralized network. There is no website that controls Bitcoin, but there are websites that pull information from the network and present it to you.
By using our site, you acknowledge that you have read and understand our Cookie PolicyPrivacy Policyand our Terms of Service. My father just asked me: What happens if the bitcoin people decide to shut down the website, what happens to my bitcoins? I didn’t know. The ledger of Bitcoin balances is stored on a network comprised of thousands of individual computers around the world. Anyone can run the Bitcoin program which contributes to that network and stores the record of every transaction that has ever happened.
This is what is called a peer-to-peer network or a decentralized network. There is no website that controls Bitcoin, but there are websites that pull information from the network and present it to you. You can trust them to store and report to you that data, but using the program itself on your computer is the most secure way to handle your funds, and it has the added benefit of also securing the network a bit.
There are many websites which do the work of downloading the program and managing your Bitcoins for you — in the same way that paypal manages your money on their website. It’s exactly the same with a Bitcoin website that stores your funds. However, a very notable benefit of Bitcoin is the ability to securely store your coins on your PC, which is not possible with cash. Additionally, as long as you hold the wallet file or technically the private key that is assigned to the program on your PC, your Bitcoin can never be frozen by.
The only requirement for spending those Bitcoin in the future is that you have your wallet file or your private key and that the network still exists. Currently the network is only getting bigger as the days pass. There are questions that follow after understanding this answer, such as how transactions are validated if there is no central authority, and there are considerably sufficient answers to those questions elsewhere on this forum and other places online.
As Bitcoin is a peer-to-peer network, shutdown in this context would need to mean the closure or abandonment of the P2P network. If this occurred and insufficient peers attempted to recreate the network — then yes, you could consider the network «shutdown». In which case your Bitcoin money has no value and essentially disappears in a puff of smoke.
This would be similar to if paper notes suddenly super-glued themselves to people’s hands, pockets or purses. Consider the fact that the energy required to process on-blockchain Bitcoin transactions can only ever increase see assumption. If the peer network massively contracted, the velocity of the currency would fall through the floor due to insufficient network processing power.
And unlike the initial speculative rush that bootstrapped the crypto-currency when «energy per hash» was cheap, the only people with the incentive to re-establish the network would be those with significant trapped Bitcoin reserves and enough non-Bitcoin money to pay transaction fees for miners to establish ASIC farms.
Paying these transaction fees to re-inflate the network would be an uphill battle; as these fees would start very high i. Escalating difficulty is the core assumption of this scenario: That energy per hash can’t go backwards due to a risk of «unwinding» existing transactions.
Bootstrapping the new network with a lower target might work — but who owning mature Bitcoins wants to re-enter the initial speculative rush due to a low target? You would need to rework the network protocol to not create new Bitcoins on new blocks until the target re-reaches the previous network’s difficulty level.
Bitcoin relies on two keys: a public one, and a private one. The public one is used for receiving funds, the private one is used for spending. There is one public key for every private key. You are encouraged to create fresh keys for every transaction to preserve your anonymity. Securing your private key is right at the top of your todo list because if someone copies that, then they can spend your bitcoin.
The best way to secure your private key is to keep it on trusted hardware, the next best is to use a HD wallet. More about these later. Bitcoin is peer-to-peer. This means that there is no central site to shut. If you are in complete control of your private keys then there is nothing to threaten your money. Your funds are safe. If you trust someone else to look after your private keys for you — such as some online wallets — then you’re trusting that they won’t spend your money, or get shut.
To protect themselves from various attacks, most online wallets ensure that the private keys remain encrypted by you so they can’t spend the money. However, if you don’t have backups of those private keys and the online wallet site is shut down then you lose access to the private keys and therefore your money.
So what were these Quora what happens if a nation switches to bitcoin wallets then? These are the next generation of Bitcoin private key management. They are essentially brain wallets on steroids and are much more secure than the classic encrypted wallet approach. Many of the other answers provide some useful information, but the spirit of the question seems to be: «If I have to use [website name] to access my wallet, which I have chosen from a list of competing service options, what happens if that website goes offline?
What’s important to remember is that the wallet is not actually on any of these websites — or even on your computer if you create one locally. Another answer suggested that the solution is to never use a website and only use a computer, but that doesn’t properly address the question because it could just be rephrased as «what happens if my computer burns up in a fire along with all my backups».
These are all the same address so they synchronize. If it is an encrypted wallet you need to know the pass phrase that was randomly generated when the wallet was created. In the event that you don’t know the pass phrase the wallet is gone forever. If you have the pass phrase, but never bothered to create a backup, there are steps you can follow that will allow you to recover the information needed to import to any other wallet service and continue.
So to answer the spirit of your question: As long as to take some personal responsibility to secure your own information the wallet will remain accessible to you even if a given service goes. There is an answer over here that goes into detail on how to recover your wallet. In the event that you neglect to secure your wallet, and the service goes under, the Bitcoins still exist, but they will never be used by anyone. If you are still concerned you could use the paper wallet feature.
As explained herethis involves taking your Bitcoins offline and storing on a code on paper just like dollars. Of course, this makes them as secure or not as real physical dollar bills. If you have a wallet on some sites and this site for some reason goes offline or went shutdownyour bitcoin will be LOSTor keep by someone.
Assuming you are using your own wallet: Nothing happens. It does not rely on a central server or website. You still have your bitcoins and your wallet is still working. The bitcoin peer-to-peer network is still operating and you can still transfer coins. If you are not using a bitcoin wallet that you control yourself, but storing the bitcoins at a website in someone elses walletthen if they shut down the website and run away with your bitcoins, that would mean the coins are lost.
This has happened with several scams in the past. In the extremely unlikely event that all websites hosting bitcoin wallet software could be shut down, then it could make it more difficult for new users to get the necessary software. This might last a few minutes and be a minor inconvenience for new users considering bitcoin.
Apparently your father is mixing up Bitcoin with Facebook. Bitcoin is not a website. For this purpose Bitcoin is not even web based but another internet service the terms web and internet are not synonymous.
The network, as a distributed entity carried by all participants, is usable for you as long as you can retain a connection to a single remaining peer, though ideally you would prefer to have connections to multiple peers. Your ability to connect to other peers is not controlled by any central authority as it is the case with, i. If your connection to the last peer fails or if the last peer goes down beacuse the network went out of fashion, you and others will still keep the contents of your Bitcoin wallets and a copy of the global transaction chain as it was at the latest time of your participation.
Once any nodes come up again in the network they can continue running from this point. Send spendable bitcoin to a ‘hot wallet’ and send your change over to a new paper wallet and throw away the original [you have no way to ‘prove’ that the private key scanned or typed in was not compromised upon use]. His question is answered with another question — What happens if paypal servers got shut down, does the money disappear? Most likely the DB or wallet software implementation they used stored all the private keys for the balances on the wallet server.
If it was on a type of virtual instance and that instance had no backups and it were to be deleted, then the balances would remain there, on the blockchain, but without those private keys, those balances would remain unspendable and effectively useless.
Your TIL moment should be: keep bitcoin across different balances and mediums its possible to keep them stored on physical pieces of paper and metal.
Don’t trust an online 3rd party like circle or coinbase with large sums of your money. Podcast: We chat with Major League Hacking about all-nighters, cup stacking, and therapy dogs. Listen. Home Questions Tags Users Unanswered. What happens to bitcoins if the site shuts down? Ask Question. Asked 6 years, 2 months ago.
Active 5 years ago. Viewed 12k times. KJ O 1 1 silver badge 14 14 bronze badges. Angelaw Angelaw 1 1 gold badge 1 1 silver badge 3 3 bronze badges. Could you please specify the website that would be shut down? There is no single website that bitcoin relies on. Someone please write a killer answer to this question, it has the potential to be an eye opening response. There really isn’t such a thing as «the bitcoin people» or «the website». I assume my esteemed fellow commentators are disputing the wording of the question not its validity as a question.
This scenario isn’t entirely esoteric. LateralFractal LateralFractal 4 4 silver badges 13 13 bronze badges. However, the hashing power could just level off, as an equilibrium between cost and profit is.
If the hashing power remained constant the running cost could actually still decrease through better miners replacing legacy hardware. Murch Certainly; for an existing network. However, a mature network pays for energy using transaction fees.
Bitcoin Business in India 2019 — Mining Profitability, Exchanges, Nodes & What to Expect #Bitcoin
One of the main goals for Litecoin was to reduce block confirmation timings from 10 minutes to 2. Share to facebook Share to twitter Share to linkedin. But the right response to that is «so what? As we see some online stores begin to accept cryptocurrencies, we will see it becoming possible to buy jewellery, groceries, clothes, electronics and. But the GDP graph also doesn’t look anything like that monetary supply graph. You might be more inclined to save money that you would otherwise have spent carelessly to avoid its loss of value, but how is this a bad thing? People are really interested in bitcoins as a «private» currency, and cash would accomplish the same thing. What it has gained is: speculation. Now, Reuters reports that it was likely a nation-state attack perpetrated by China, according to evidence unearthed siwtches private natiob hired by Marriott. So the only people worth listening to jf the subject of bitcoin are people who own bitcoin and hence have an incentive to further talk it up? What do Bitcoins do? How does that constitute a vote of confidence in the currency itself? Or, to look at it from bitconi angle: the central bank cannot set a negative interest rate, that is, take interest just for keeping the money in the account people will keep it under the mattress instead. So there is democratic accountability, albeit democracy on a long fuse, that discourages the Fed from doing something stupid with the dollar. What’s wrong with the protocol documentation on the wiki? As I mentioned above, Bitcoins value relative to the dollar is irrelevant, because its value is found in its utility. X one of the reason Q a little hesitant to touch it.
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