Why Are You Sceptical of Bitcoin?

Bitcoin discussions often attract scepticism, and I’m interested in understanding why.

I’m not looking to argue or persuade anyone to buy Bitcoin—just to hear from those who are critical of it.

I’d especially like to hear from people who have researched Bitcoin and concluded it’s not a worthwhile investment or store of value.

If your opinion has changed over time, I’d also be interested in what influenced that shift.

Please keep the discussion respectful. I’m here to understand different viewpoints, not debate them.

Comments

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  • Bitcoin is the dumbest thing ever

    It's only good if you like gambling but no use case for it

  • watch "Everyone Is Lying to You for Money".

    This pretty much touches on everyone's valid reasons to be sceptical.

  • I was introduced to Bitcoin by a colleague shortly before covid, he tried to shill me on it a few times, I countered him with the usual criticisms (made out of nothing, not backed by anything, full of scams, etc). Out of frustration I finally shut him down quite rudely and we moved to different jobs.

    The unnerving reality though that the entire financial system and economy has changed to the point where few people knows what gives anything value.

    Somebody earlier suggested the solution was investing in tangible assets. However the Boomers did that speedrun decades ago. Is betting on a property portfolio or a stock market really any safer at current valuations?

    • Is betting on a property portfolio or a stock market really any safer at current valuations?

      Property - unlikely beyond the medium term. We have current high population growth due to mass migration. But the new opposition is determined the stamp that out and ALP knows it's political suicide if they don't meet halfway. We also have AI and robotics replacing human labour already beginning (the government is only just realising this is the future so I expect migration targets to be reduced and it will be a nice way to save face "oh we're not copying One Nation, we're doing it because of the AI") and as that gains momentum there will be less and less work available for humans. We also have an ageing population so the housing stock shortage we have had for some time which has enabled the residential real estate price run over the last several decades will eventually reverse and we will have a surplus of housing. Maybe some niche Build to Rent investments that are profitable because of a combination of economies of scale and favourable tax arrangements (i.e. accelerated depreciation schedule, ongoing 50% CGT discount and ongoing negative gearing) will be the exception.

  • The maths and economics behind it make no sense.

    Scarcity ≠ value.

    I'd be prepared to pay maybe 20c for a solution to a Bitcoin-style puzzle - if I was feeling generous. So a price several thousand times that is ridiculous.

    Finally I don't actually believe Bitcoin is safe from quantum attack. While quantum attacks threaten all secure communication, the situation is especially dire for Bitcoin addresses in the earliest P2PK format as explained by this article. The issue is absolutely one of broadcast - a lot fewer people see the password I send to my bank than see any given Bitcoin public key.

    • The various quantum computing attack vectors are hard to ignore - this would be my number 1 fear.

      It seems it's inevitable - not an if, but a when.

      • But those quantum attacks will be used against banks, etc.

        • No they wont. Banks etc have been moving to quantum resistent algorithms for years now, bitcoin doesnt have that luxury.

          • @gromit: can you point me to a bank that can guarantee quantum resistant remote access to my account?

            • @vasya: At the moment none as they dont need to, though they could switch overnight if needed. Current post quantum tls is still in testing.

              • @gromit: Cryptocurrencies are using similar in principle algorithms to TLS. So as long as this problem can be resolved for banks it will be resolved for crypto as well (maybe not for a particular blockchain though).

                • @vasya: WRONG. Banks can switch out the algorithm, crypto requires all the wallets and addresses to be migrated as the keys become invalid

                  • @gromit: "Banks can switch out the algorithm" - means banks require all their systems, software and clients to be migrated as well as their keys will become invalid as well.

                    • @vasya: No they do not, current browsers support post quantum encryption, they literally just need to replace tls config on their servers. Banks do not rely on client crypto keys. You probably should read a little on the topic before commenting.

                      • @gromit: My point is simple: if quantum computing threatens the cryptography we currently rely on, then the risk isn't limited to cryptocurrencies, it extends to every system built on those same algorithms, including the banking system, which holds far more money than all cryptocurrencies combined. Banks can migrate to quantum-resistant cryptography, but rolling it out across their infrastructure will take significant time. Your reference to browsers is just funny - bank is not a website, mate. ;)

                        • @vasya: You dont seem to understand, the banking system is NOT built on crypto, it utilises it as an easily replacable layer of security. Unlike bitcoin which ia built on it. For banks it is an inconveni3nc3, for bitcoin it is an existential crisis.

                          • @gromit: I'm afraid "easily replaceable" and "existential crisis" are too emotional (or biased).

                            • @vasya: I am afraid you dont seem to understand crypto or how it is used. If a large enough quantum computer cracked encryption with shors algorithm overnight then bitcoin would be effectively dead as you coukd not trust any transaction. Banks would need to switch encryption for client and external connections, depending on infrastructure this can be done in hours to weeks and underlying transactions would not be affected as banks use crypto for security and privacy not transactions.

                                • @vasya: https://thecoinomist.com/personalities/shors-algorithm-and-q…

                                  If it happens before btc migrates there is no coming back from this.

                                  • @gromit: Quote from your link:

                                    Fixing the Future: Can Bitcoin Adapt?
                                    The good news–yes. Bitcoin can change.

                                    The bad news–changing it is hard.

                                    • @vasya: Estimated time for btc to change is 7 to 10 years… IF they can get community agreement and decide on burning wallets that dont migrate. It is a real problem, hopefully they can get consensus and get it done, the question is can they do it before it is broken. Noting that once it is broken then it becomes to late, migration must be completed prior to breaking.

                                      • @gromit: With all that AI stuff mentioning 7 to 10 years is eternity …

                                        what else should I read?

                                        • @vasya: Currently the saving grace is quantum computing that can scale to enough qubits is still an unknown distance into the future, BUT new innovations happen all the time. E.g Microsoft just announced a 1000 fold increase into the stability on their quantum processor but it is only 12 qubits. So basically it is a race to see who gets there first, If genuinely interested then read up on why shors algorithm is such a threat. Essentially for btc it is an identity issue, what determines who owns a wallet is the key and only the key, if the key can be computed from signed transactions then you no longer have a way to determine who owns each wallet. There are plenty of alternate quantum resisitant algorithms and to switch gtc to use them means everyone needs to replace there wallets and keys

                                          Innovations like this bring quantum computing ever closer.
                                          https://news.microsoft.com/source/features/innovation/majora…

      • every year quantum computers are about to
        destroy bitcoin. somehow bitcoin keeps having
        the more immediate problems.

        • The problems won't happen until ordinary people can get access to quantum compute - that will happen, but hasn't happened yet.

          It's not like it's a fear tactic, the technology exists and will become accessible with time and it's guaranteed it will be used to hack crypto.

    • if quantum breaks bitcoin, your bank password is
      not having a relaxing afternoon either.

      • While true, cryptography is not the core principle running banks - banks can change the authentication mechanism.

        Crypto currency doesn't have such luxury.

        • fair concern. but “bitcoin can’t upgrade” is
          one of those claims that’s already been
          disproven several upgrades ago.

          • @welcomeUniverseWorld: That may be the case, but I didn't claim it can't upgrade.

            The key difference is the underlying principle of crypto currency is the cryptography - "upgrading" it is unlikely to help in this situation - or perhaps buy a few more days.

            The issue at hand is that quantum computing scales at a rate that'll be complicated to out match.

          • @welcomeUniverseWorld: bitcoin can't upgrade, the only changes that have happened are around the edges, to fix the quantum breaking problem they actually have to fundamentally change the core of bitcoin to the point it is no longer bitcoin.

      • Your banks have long since moved on from algorithms that are subject to quantum attacks.

        • Current public-key cryptography used across internet banking, certificates, authentication, APIs, payment systems and interbank infrastructure could eventually be broken by a sufficiently powerful quantum computer.

          Banks have huge legacy systems including vendors, hardware security modules, certificates, payment rails, APIs and mobile apps. Moving to post-quantum cryptography is not a single software update; it is a multi-year cryptographic inventory and migration program.

          No Aussie bank is compliant enough to say they are risk free at this stage.

          Australia’s cyber-security authority, ASD/ACSC, now gives explicit guidance on post-quantum cryptography. It says organisations should prioritise systems that are critical, hold highly sensitive or long-lived data, or will be difficult to update, and says organisations should complete their PQC transition by the end of 2030.

          The same goes for Bitcoin. Bitcoin developers are working towards making it immune to quantum computers.

          If Bitcoin is broken , your banks are broken as well as of today.

          • @welcomeUniverseWorld: for banks that are still stuck on pre quantum algorithms sure. Most have started the process of post quantum encryption long ago. They are all expected to be migrated away well before Quantum computing becomes an issue.

            Bitcoin inherently can't become immune without actually changing the core algorithm, that is the problem. and if it changes the core it is no longer bitcoin, just another alt coin. Also just because the encryption used in banks is broken doesn't mean you suddenly have access to people accounts, unlike bitcoin the transactions in a bank aren't dependent on an unbroken crypto chain.

  • Google "how much crypto did north korea steal?", I don't want to be part of a scheme that contribute to their wealth

    • You should withdraw all your money from the banks then.

    • wait until you hear what North Korea uses dollars
      for.

  • What can you actually use it for? I remember having these discussions a decade ago, I was skeptical then and I am skeptical now. That doesn't mean that money couldn't have been made but it is literally just speculating on some imaginary coin that you really can't use for much. It is weird how speculating on houses bad, NFTs bad, speculating on penny stocks is gambling but crypto seems to be OK? It's so weird, personally I won't touch it and that has probably cost me money.

    • speculation is gambling when other people do it
      and investing when your bank approves the loan

  • Storing bitcoin is the equivalent to stashing money under the mattress.
    At least you can predict the erosion of the value of money, but you have no idea what, if anything, someone will pay for your bitcoin in the future.

    • And if you loose the combo or keys to your house, at least you can break down the door. But if you forget your pw, … you're up the creek.

      • this is actually one of the better criticisms. self-
        custody has a customer support department of
        zero.

    • bitcoin uncertainty: future market price.
      cash certainty: guaranteed debasement.
      choose your anxiety.

      • alternate choice: invest in something with value

  • Bitcoin—just

    If I see this dash should I automatically assume its AI generated?
    That dash is not normal.

    • But—you can— do it — yourself. It just takes two hyphens - - to — get— to — it.

    • Hey, I used them liberally for years — long before AI.

  • I’d especially like to hear from people who have researched Bitcoin and concluded it’s not a worthwhile investment or store of value.

    There is no one mandating the use of bitcoin. So its easy for all users of bitcoin to switch to another form of payment overnight triggering a crash. I am not saying this will happen but it can happen and it's only a matter of time before it happens.. for USD or any other currency, a government mandates the use of it and back it.

    • “people use USD because they have to” is The reason many started to accumulate btc

  • Volatility and risk.

    • bitcoin bulls spend all day pretending volatility
      doesn’t matter


  • For the love of God, why?

    • It's essentially just an algorithm
    • There's nothing that backs it
    • It's "value" mainly comes from people agreeing to pay a certain price
    • The algorithm can be duplicated and an unlimited number of Blockchain /Bitcoin clones could be created that are for all intents and purposes identical
    • I can't use it to actually buy anything in my day to day life
    • It's too volatile to be considered a serious currency
    • It's not private. Governments can identify ownership

    Happy to be corrected.

    • yes, the code can be copied. the liquidity, network,
      holders, infrastructure, ETFs, miners, and brand
      are the annoying bits to duplicate
      .

  • My core issue with Bitcoin is that I don’t fully understand what it fundamentally is. To simplify how I think about the financial world, I break things into two broad categories:

    1. Assets (Things with Intrinsic Value) - Assets are things that have inherent usefulness or productive value. For example:

    * A company that produces goods or services
    * Physical commodities like gold, iron, or oil
    These have value because they do something or are used for something in the real world.

    1. Valuation Tools (Units of Measurement)
      Currencies fall into this category. Their purpose is to assign value to assets and facilitate exchange. A currency itself doesn’t necessarily have intrinsic value
      Its worth comes from the strength of the underlying economy or system behind it
      For example, USD 100 may be worth more than AUD 100 because of differences in economic strength and global demand.

    My difficulty with cryptocurrencies like Bitcoin is that they attempt to function as both an asset and a currency, but don’t fully succeed at either:

    As an asset, Bitcoin has no clear intrinsic utility like a company or commodity. Its value seems primarily driven by demand, scarcity, and speculation rather than real-world use.
    As a currency, it is highly volatile and not widely used as a stable unit of account or medium of exchange. That makes it unreliable for pricing goods or acting as a consistent store of value.

    So in my view, Bitcoin sits uncomfortably between these two categories where it tries to be both, but lacks the strengths required to excel at either.

    Ultimately, my position comes down to a simple principle: I won’t invest in something I don’t understand.
    This aligns with the well-known Warren Buffett philosophy of staying within your “circle of competence.” Even if others are making money from crypto, I don’t feel comfortable supporting or investing in something that I cannot clearly define or fundamentally explain.

    • "My core issue with Bitcoin is that I don’t fully understand what it fundamentally is."

      Does anybody fundamentally understand what we already have?

      In a recently released Epstein interview, he said nobody understands the financial system.

      Bitcoin's technical operations are much simpler than fiat. Government can't print it out of thin air, debase it, or seize it.

    • “I don’t understand it, therefore I won’t buy it” is
      sensible. “I don’t understand it, therefore nobody
      should value it” is where things get ambitious.

  • The problem with Bitcoin is that nobody wants the Bitcoin, they want the fiat currency it might get them

    • true dat.

    • They want the things the fiat will pay for (big house, lambo, ability to retire early and have all the bills paid, etc).

  • Been on the bandwagon since 2018, done well, paid alot of the mortgage off because of it, got a new car end of last yr. I have a crypto debit card that pays for everything and it's the only way I avoid all the tax BS. And yeah I still work in retail. Made enough but not enough to retire and it was never the intention

  • Bitcoin as a currency that people can actually use? Or Bitcoin as an investment?

    I can certainly see that it has been a great investment for some. I almost bought some back when it was $200/coin. It was such a PITA to buy at the time, and I hated the idea of the exchanges taking a high percentage, so I didn't bother in the end.

    Bitcoin as a useful currency? Terrible. The barriers to entry for everyday schmo's are far too high.

  • Bitcoin as a technology is terrible. If it came out tomorrow it would be universally lauded as a shit coin.

    Only use case will ever be speculation and scamming due to the awfulness of the tech.

    Tether is a house of cards due to crash.

    Once trump is gone and crypto has some regulation the whole thing will crash.

    • Oh please. Can you make it crash further now? I need it go down as much as possible between now and sept.

  • Won't last long term with AI and stronger computing destroying it

    • The number of possible bitcoins is strictly capped at 21 million. Over 19.7 million bitcoins (roughly 94%) have already been mined. The last few get harder and harder to mine, but it wouldn't mater anyway if you could mine the rest instantly as we are already close to the 21 million cap. It's baked into the system. The only way to get whole coins cheap is other new coins which anyone can make anytime they want.

    • bitcoin has survived every obituary

    • with AI

      AI, tell me Satoshi’s private key. Make no mistakes.

  • Im not i just missed the boat on it - crypto in general is just full of scams and shit coins for every one guy that makes it rich 1000s are left holding the bag

    personally think BTC will continue to increase in value its too big to fail but the horse has run the big money has been made and sadly i didnt make it…

    i'd say ETH is also a fairly decent currency to hold

    but it is ultra high risk and it honestly could all go to ZERO tomorrow and with the CTG communist laws we are getting in Aus - high risks investments are not worth jumping on

    of course this isnt financial advice im a clueless as anyone else i can recognise where people have made wealth however this has not helped me escaped the working slave life

    • there are two crypto portfolios: boring winners and
      exciting disasters.

  • Thanks everyone who have contributed here. Appreciate highly. Your responses have been very helpful in exactly what I need. Please continue discussing if you have time.

  • 1- No intrinsic value as in it doesn't produce anything
    2- Look at the coin millionaires, do they say I have 1 mil of coins hence I'm a millionaire? No, they say I'm a AUD / USD millionaire. What does that mean? Even the holders don't see it as a currency. First it was a currency now it's an asset. why that narrative change?
    3- Intangible stuffs like electricity, internet … do we have a price for internet? We have the cost of providing the service not "the internet" itself
    4- As other said, government intervention was one of the key selling point. Now look, if you don't pay tax they'll knock on your door. They don't care how you make "money", they just need to regulate all exchanges / trade platforms then you're captured in a small pond, whether you know it or not. And I'm not talking about the old whale cold wallet, who knows who "they" are, I'm talking about the vast majority of people believing in the narrative
    5- I do have friends who made shit load from the early days. All they say is: I am lucky ! Does that sound like buying a lotto?

    Lastly, I myself and may be a lot of people do sometimes regret of not getting into it early. Why is that? because it's the emotion of seeing the easy money leaving on the table and some random dude or kid with funny reasoning just grab a bucket, not the rational thought process of investment at all
    Nevertheless, having putting all the reasons which sound right, I do regret though lol

    • What is the intrinsic value of a piece of paper?

    • “I don’t believe in it and I regret not buying it” is
      probably the most common bitcoin position on
      earth

  • As long as you accept it’s speculative

    • Everything in life is speculative for me

      • If that's true then perhaps not everything in life is speculative after all, although that's just my speculation.

  • I think one has to be at least a little crazy to hold Bitcoin through the large swings in value within a superannuation fund. I have done exactly that through 2 cycles, and I would like to do it for another cycle. However, I am not entirely sure whether my heart can handle another cycle of stress or whether my health can withstand another round of volatility.

    I am not sure whether that fully answers reason why I asked. I asked the original question to gather as much scepticism as possible from anonymous contributors here and across other social media platforms. I am conducting a thorough debate in my own mind, considering both sides of the argument. All perspectives are valuable to me.

    If I buy, I likely buying around Oct 12-15. All your replies help me make up my mind finally ensuring I have the ability to hold with dear heart

    • around Oct 12-15

      Such exact timing from your crystal ball.

    • hi it sounds like a bit of over positioning. eg input to large a sum on crypto. most people are looking for short term high gain. it will reliably double every four years. so more long term.

    • I likely buying around Oct 12-15

      Gann?

  • I watch crypto banter. some of the stuff they talk about is wack. however, they did say the price could be go 60,40, 80, 100. eg big swings down then institutions buying up. retail is usually going to hope it goes up and institutes shorting. like they do with all assets.

  • Bitcoin is a solution to a problem that never existed.

  • I have a friend in Argentina who earns an average wage($200usd per week) and regularly puts part of her pay into Bitcoin. The main reason is to protect herself from the peso's high inflation, but also being able to buy/sell small amounts instantly from her phone and store it securely is very convenient.

    Why doesn't she just convert pesos to USD. Her bank doesn't always offer currency exchange, so she has to withdraw cash which also isn't always available and find someone to exchange it on the black market, usually at an unfavourable rate. Then she has to stash the cash somewhere safely.

    In Australia the average person has access to government-backed bank accounts, investment options, property markets, precious metals, and relatively stable currency. Many people around the world don't have those opportunities due to inflation, unstable governments, conflict, or limited financial infrastructure.

    My friend is an example of someone whose financial situation has improved because Bitcoin gave her an accessible way to preserve value. Could Bitcoin go to zero, yes but as she puts it, her pesos are already heading that way.

    My point is that for many people around the world, Bitcoin genuinely serves as a store of value.
    Is there risks with bitcoin, absolutely but I wanted to share a good example of where it had a positive impact for someone.

  • Bitcoin is probably more reliable and valuable than most world currencies.

    People should not let bias and ignorance cloud their judgement regarding bitcoin investment.

    Or sour grapes….

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