Bitcoin (BTC) Is an indestructible digital currency, but that does not mean that it remains accessible forever. There are various factors that represent a threat to Bitcoin and influence the future of the network.
Immortalized in the blockchain
Each Bitcoin token is registered on the blockchain-a public network that documents all BTC transactions. BTC cannot really disappear, because this network continues to exist.
However, this does not mean that Bitcoin is always accessible. Even if the blockchain records the possession and trade of Bitcoin, it is the responsibility of the owner to keep its bitcoins safely. If you lose access to your bitcoins – for example by forgetting the password – these are irrevocably lost. This problem will be tightened over generations.
Crypto Burning: permanently lost BTC
In addition to the loss of access to the Bitcoin wallet, there is another way to lose BTC. Sending Bitcoin is a delicate process because the long and complicated addresses can easily lead to mistakes. A typing error or the incomplete copy of an address can lead to Bitcoin irretrievably sent to a non -existing wallet.
Such mistakes not only happen accidentally – sometimes bitcoins are deliberately “burned”. This process is referred to as “burning” and has the advantage that the coins located in circulation become scarcer, which can potentially increase their value.
While some networks of Burning integrate – for example by burning transaction fees – this is not the case with Bitcoin. Nevertheless, many BTC have already been lost through accidental burning. According to one Report by Chainalysis In 2020, 3.7 million Bitcoin had already disappeared irretrievably.
Possible threats for Bitcoin
Bitcoin is immortalized in the blockchain, but is faced with potential threats in the real world that could make it difficult to operate. Two of the most important risks are regulation and technology.
Many countries are currently open to Bitcoin. In El Salvador, for example, he is Official means of paymentand in the United States, BTC is even part of the traditional financial market in the form of stock exchange -traded funds (ETFs). In China, on the other hand, there is a complete ban on Bitcoin and others Cryptocurrencies.
Technologically, Bitcoin could also come under pressure in the future – especially if the development of quantum computers progresses faster than the development of quantity -safe encryption for the blockchain.
Even if it could still take decades for a quantum computer to be able to crack Bitcoin, the network must already work on quantity -safe encryption.