Why Bitcoin Cannot be Confiscated (Why Bitcoin Cannot be Cashed Out)

Why Bitcoin Cannot be Confiscated. This article explains the fundamental issues with Bitcoin. First and foremost, we need to clarify that Bitcoin is not a public currency. If Bitcoin were a public product, it would be a private market. However, due to the lack of public accessibility and immutability inherent in Bitcoin itself, this flaw also exists in blockchain technology.

Therefore, when considering Bitcoin and other cryptocurrencies as financial instruments, we must understand that Bitcoin has different functionalities: private, open, and decentralized. However, it is important to note that Bitcoin does not possess these basic characteristics, and its design concept is the same – it can only be achieved through smart contracts (such as Ethereum). Additionally, although Bitcoin allows for free transactions, it cannot be regulated or controlled by regulatory agencies or central entities because it is open-source and fully transparent, with its code having to undergo verification before execution. Once significant problems are discovered, malicious attacks, such as phishing incidents, may occur, hence Bitcoin should not be used for payment purposes. Secondly, Bitcoin cannot be issued by the government in the same way as gold. Furthermore, Bitcoin is a special type of electronic cash system, often referred to as a “savings account,” used to send or receive funds worth over $100 or less. Thirdly, from a legal perspective, Bitcoin is not a legal tender but merely a means of purchasing goods. Lastly, Bitcoin does not have practical utility and can only be used for speculative purposes. Additionally, Bitcoin still lacks economic incentives to make it an investment product.{Title}: Why Bitcoin Cannot be Cashed Out