Part 3 Frequently asked questions
Why won't something else replace Bitcoin?
In order for something to replace Bitcoin for saving, it would need to provide similar and even better properties. While some "cryptos" are
also easy to transport and scarce, none of them have the level of decentralisation of Bitcoin, and that means their rules could change when
under attack.
The decentralisation of Bitcoin goes beyond the mere technical and organisational. There is also a culture of decentralisation, which acts
against attempts to centralise. There could be something else in the future which is better than Bitcoin, but as time goes on it is less
and less likely. It is less likely now than it was five years ago, for example.
If Bitcoin is so secure, why are there so many reports about people losing their money?
In order to benefit from Bitcoin security, you need to follow the five principles of Bitcoin mentioned in an earlier video. Usually, when
you hear about Bitcoins being stolen, the people involved violated principle number two: not your keys, not your coins. They entrusted
their keys to someone who doesn't know what they are doing, they left it in an unsecured computer, or their keys got damaged beyond repair.
It's similar to someone putting a massive lock on their house door, but then leaving the lock open when leaving the house.
If Bitcoin consumes a lot of elecricity, do I have to worry about my elecrticity bill?
When Bitcoin was originally launched in early 2009, there was only one software doing all the work. Gradually, specialised software
developed for the individual activities involved in the network. The, nodes, verify the ledger and enforce the rules. The, wallets, keep
your private keys secure and initiate transfers on your behalf. And finally, miners, which consume elecricity and provide security for
Bitcoin. In the meantime, mining is a business like any other. Miners run in data centers and in special containers which can move to
wherever cheap energy is available.