I understand it plenty well. The block chain ledger still has the bitcoin in it, but if you lose access to the cold storage wallet for any reason, the only way to recover it is with data you most likely won't have. Some online wallet services, and vendors of the hardware wallets will generate you a hash of the encryption key that is a long multi word code, but if you lose that also, like say you had it written down on paper next to your computer, thumb drive with your cold storage, and your house burns down, it's gone unless you have a savant like memory for it or your online service remembered the code for you but I think most of them do not retain the code for security purposes. Even if it was 100 billion dollars worth of bitcoin, it's gone. To avoid this people have multiple backups including off site, like in a bank deposit box. 99.9% of bitcoins users are not this thorough. No system is 100% perfect, and I understand full well the advantages of block chain and having a currency not controlled by evil governments, it still has it's potential flaws and drawbacks. Flaws inherent to the bitcoin system itself will likely see it replaced eventually with a better crypto as the backbone of the crypto market, there are some contenders out there already, but nothing big enough to push bitcoin out.
And all those flaws you just mentioned apply to physical cash as well, but even more so:
-If you lose access to your leather cash wallet, it's likely gone for good. No recovery of that.
-If your house burns down, your cash burns. No recovery of that. Even if it's 100 billion dollars worth of cash, it's gone. Any cash offsite backups possible?
I love all the fearmongering surrounding crypto; it's a sign for me to keep buying. When all the normies start FOMOing on crypto, then it's time to sell.
I understand it plenty well. The block chain ledger still has the bitcoin in it, but if you lose access to the cold storage wallet for any reason, the only way to recover it is with data you most likely won't have. Some online wallet services, and vendors of the hardware wallets will generate you a hash of the encryption key that is a long multi word code, but if you lose that also, like say you had it written down on paper next to your computer, thumb drive with your cold storage, and your house burns down, it's gone unless you have a savant like memory for it or your online service remembered the code for you but I think most of them do not retain the code for security purposes. Even if it was 100 billion dollars worth of bitcoin, it's gone. To avoid this people have multiple backups including off site, like in a bank deposit box. 99.9% of bitcoins users are not this thorough. No system is 100% perfect, and I understand full well the advantages of block chain and having a currency not controlled by evil governments, it still has it's potential flaws and drawbacks. Flaws inherent to the bitcoin system itself will likely see it replaced eventually with a better crypto as the backbone of the crypto market, there are some contenders out there already, but nothing big enough to push bitcoin out.
And all those flaws you just mentioned apply to physical cash as well, but even more so:
-If you lose access to your leather cash wallet, it's likely gone for good. No recovery of that.
-If your house burns down, your cash burns. No recovery of that. Even if it's 100 billion dollars worth of cash, it's gone. Any cash offsite backups possible?
I love all the fearmongering surrounding crypto; it's a sign for me to keep buying. When all the normies start FOMOing on crypto, then it's time to sell.