Bitcoin – Still a Good Idea?

Ahhh, hell no. As this Yahoo article points out.

While Bitcoin ended the day with a 4 percent decline in its value, Ether, the native cryptocurrency of Ethereum, plummeted by 13 percent against the US dollar, becoming one of the worst performing major cryptocurrencies alongside NEO.
Tokens recorded the steepest drop in their value on August 11, as most Ethereum-based tokens such as Theta Token, Aion, Pundi X, Aelf, DigixDAO, WanChain, and VeChain recorded a drop of around 14 to 18 percent.

via Yahoo Finance

Today, money has no value unless a government gives it value. The United States is a great example. How much is $5.00 worth? Whatever the United States government says it is. It is not backed by anything. Neither is cryptocurrency. It’s worth is decided by Wall Street traders which makes it even worse than the US government. How much is a bitcoin worth? It depends on what day you ask the question.

What if you buy a fancy crypto wallet and store your digital currency in that? What if you forget the password? Well, this happens.

But not all early cryptocurrency enthusiasts are counting their coins. Instead they might be racking their brains trying to remember their passwords, without which those few Bitcoins they bought as an experiment a few years ago could be locked away forever.

That’s because Bitcoin’s decentralization relies on cryptography, where each transaction is signed with an identifier assigned to the person paying and the person receiving Bitcoin. It’s how the system is able to process large transactions without a central bank, since each exchange is guaranteed by authenticating when money is going from one wallet to another using both public identifiers and private passcodes, and no one can access your Bitcoin wallet without your private password. If someone else somehow had your password and swiped your coins, they’re gone for good. Passwords are used to unlock your bitcoin wallet address, and if you forgot your password, those coins are locked away. There’s no central point of control to help retrieve your Bitcoin or change your password. If there was an easy means of cracking open people’s Bitcoin wallets when a password was lost, the cryptocurrency would be worthless, since the whole point is security without centralization.

via Slate

My two cents: I think that arguing that this is a good idea based on the fact that you are a geek and this is a geek thing has no merit. In the age of hacking, this is a horrible idea.