Last updated on February 5th, 2018 at 10:50 pm
What’s more interesting to me is the fatal flaw of passwords. You have to protect your Bitcoin wallet passwords at all costs. Bitcoins are like bearer bonds. If you steal them, they’re yours. The rightful owner can’t get them back. And if you lose your password, you can’t retrieve them. There are already people freaking out because they mined Bitcoins years ago, when they were worth pennies, and now they can’t remember how to get their Bitcoins back. Not only that, but everyone who passes away without leaving their password behind means those Bitcoins are also gone forever. Poof.
What wasn’t accounted for in the algorithm (or any of the crazy hype about blockchain) is human fallibility. We can’t remember our passwords. We also refuse to plan appropriately for our deaths. We are going to keep losing Bitcoin, and it is going to go to the grave with us, until there is no Bitcoin left. This ratchets in only one direction.
The max cap of Bitcoin, and the entropy of human recollection, mean that Bitcoin’s days are numbered, not just as a bubble, but as a thing with any kind of existence, real or imaginary.
If you write your passwords down, they can be stolen with no recourse. If you don’t, they’ll be lost for good one day.
Eulogy made by Hugh Howey