Three reasons why Bitcoin is not yet in your wallet - Techworld

While there’s interest to become a bitcoin currency “real”, there are issues that need to be resolved before people start to use it for everyday purchases.

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As Bitcoin’s popularity grows, so does speculation about his position as a legal tender. But there are remaining issues that need to be resolved before people start using Bitcoin to shop everyday things, experts said on Monday (10).

Bitcoin has been described as both a store of value and a currency, but it is debatable whether it is any of these two things. Its price can fluctuate greatly from day to day – if not overnight -., And his reputation was tarnished by his connection with the sale of illegal drugs and other illicit activities such as money laundering

For these reasons and more, Bitcoin has a long way to go before becoming a mainstream form of payment. Here are three reasons that generated some discussion on Monday in The Future of Money and Technology, a conference in San Francisco.

1. Buyer attention!

For starters, transactions with Bitcoins are designed to be irreversible. So if you buy something online from a merchant that accepts Bitcoin transaction and end up being a fake, or the payment is sent to the wrong place, or something else happens, the buyer will probably lose that money.

“You’re dealing with the honesty of the seller,” said Steve Kirsch, CEO of OneID, a startup that provides encryption services to secure data from people. “It’s like giving people money,” he said during a panel discussion at the conference.

Other speakers, all supporters of Bitcoin, agreed in 2014 that more services could appear in order to solve this problem, such as court bills that could channel the money back to the buyer in the case of fraudulent transactions.

Bitcoin system is constructed by using an open source framework, then these types of events can actually happen.

New companies may emerge next year to solve this problem. The existing “players” as Bitcoin payment processors, can also add new features to their services in this area, the speakers said.

2. Keeping your insurance bitcoins

bitcoin Each has a private key associated with it that is decrypted, allows money to be sent to another computer using a peer-to-peer (P2P) software. For these private keys are often stored on personal computers or people within Web-based services, bitcoins are vulnerable to theft.

“All existing mechanisms for security, including their signatures [verified] are problematic,” Kirsch said. Any type of malware attack can be directed to someone’s computer for the purpose of stealing bitcoins, he said.

There are different ways to store this private key. The Coinbase and other companies offer digital portfolios. Other companies have portfolios “offline” or paper to lay hold of the key back to the user’s hands, literally: the Bitcoin addresses and private keys are printed on a piece of paper. And the Winklevoss twins, Facebook also offered a solution to the so-called “safe”.

But none of these strategies

mentions the fact that someone still has to store the key somewhere, experts said during the conference. “If you store wrong or leave out there, is like money,” said Jared Kenna, CEO of TradeHill, a house that Bitcoin Exchange suspended its negotiations in August, due to issues with banking and regulatory affairs.

wallet system, called Armory, allows users to maintain multiple portfolios encrypted.

Be very

encryption, however, can also be a bad thing. “I have friends who are experts in cryptography,” Kenna said. Some of these friends have applied to encryption keys so that they could not recover them, he said.

3. Banks are not on board

Bitcoin recently gained the support of federal officials in Washington DC, but many commercial banks still do not know what to think about it.

To

Bitcoin users who are thinking of a more traditional route to keep its budget security, this can be a problem. The coin is designed to exist without any financial or legislative authority -. Maybe but some regulation is necessary, after all, the speakers said

“The lack of regulation may do more harm than any regulation could do,” Kenna said the TradeHill. “When there is no clear regulation, the banks do not even want to get close,” he said.

recent support from Washington to Bitcoin, and popular figures such as businessman Richard Branson, could help “take the stones out of the way.”

“There are big forces underway within the U.S. government,” said Brewster Kahle, president of the Credit Union on the Internet, a nice bench that Bitcoin poured some of his clients last summer, citing regulatory issues. “I’m hoping that things get a little better,” he said.