4 ms·

If you use a local wallet to store your BTC, let’s say on a HDD, the the magnetic pattern on the disk that makes up the bits that represent your coins would be

by WD-42 6y ago

If you use a local wallet to store your BTC, let’s say on a HDD, the the magnetic pattern on the disk that makes up the bits that represent your coins would be physically owning then. They can’t be retrieved any other way.

temp8964 6y ago
Do I still own the BTC if the whole BTC network shuts down?
- G3rn0ti 6y ago
  You own your Bitcoin as long as there is at least a single node out there storing its Blockchain. But it would be the only instance left that could confirm your ownership in that doomsday vision of yours. You can think of Bitcoin as a kind of identity management system. The blockchain stores transactions mapping public keys to each other and monetary values. As long as you remember the private key matching your public key you can issue transactions on the blockchain. Contrary to common belief Bitcoin is not stored on your hard drive, they contain only your private keys. The monetary units themselves, “UTXOs”, are stored on the network of Bitcoin nodes distributed all over the world.
- vinay_ys 6y ago
  If you have a $100 currency note in your hand, you can spend it as long as there exist someone who believes there is a market for $100 bills. Same as with a gold coin. But if you have a $100 in your bank account, there is an additional constraint – you can spend it only if your bank is alive and functioning correctly and lets you specifically (you are not sanctioned/banned) to spend it. Same is the case with bitcoin for those who store their private key on exchanges. First there should exist a market for it (others who also believe bitcoin has value). Then, just like banks, the bitcoin exchanges where you escrowed your key have to let you spend it through them. If all exchanges you have access to in your country decide to ban you (because your govt told them to) then you cannot spend your bitcoin. In this way, bitcoin and your bank account balance are similar and they both are different from hard cash in hand or gold coin in hand. If you hold your private key yourself and run your own bitcoin lightweight node to connect to bitcoin network and submit your transactions, then you don't need exchanges. Even then, others who use exchanges maybe blocked from transacting with you through govt sanctions etc.
  - throw0101a 6y ago
    > But if you have a $100 in your bank account, there is an additional constraint – you can spend it only if your bank is alive and functioning correctly and lets you specifically (you are not sanctioned/banned) to spend it. Given my bank is on the list of "systemically important banks", if it goes under/down there's probably more going on in the world such that I probably won't be worrying about my proverbial $100 too much: * https://en.wikipedia.org/wiki/List_of_systemically_important_banks https://en.wikipedia.org/wiki/List_of_systemically_important... (And I do have accounts at multiple banks in case of IT problems at one bank.) > If all exchanges you have access to in your country decide to ban you (because your govt told them to) then you cannot spend your bitcoin. Of all the things that I could worry about going wrong in my life, these doomsday scenarios are not even in the Top 1000. I'm more worried about stubbing my toe than some of these currency collapse scenarios that some Bitcoin fans come up with.
codehalo 6y ago
Bitcoin is not stored on your HDD, or on a local wallet. The "local wallet" simply points (or references) an address on the bitcoin blockchain. There are obviously more details, but you can do your own research.
- lxgr 6y ago
  Isn't this functionally equivalent to the statement "(access to) the coins is stored on your HDD" for most purposes? Not all discussions require the highest level of technical detail.
krb686 6y ago
As codehalo pointed out, there's no magnetic pattern that represents coins on your hard drive. There is a magnetic pattern that represents your private key for your wallet (if you store it there), which possession of you might equate to possession of the coins to since without it they can't be used. Still, access isn't really possession is it. I can lend my house key to a friend but they don't possess my house. The deed is what really declares me the owner. In the case of your coins, it's the consensus of the blockchain.
- Grustaf 6y ago
  Bitcoins are like bearer bonds. Unlike houses.

by WD-42 6y ago

temp8964 6y ago

Do I still own the BTC if the whole BTC network shuts down?

G3rn0ti 6y ago
You own your Bitcoin as long as there is at least a single node out there storing its Blockchain. But it would be the only instance left that could confirm your ownership in that doomsday vision of yours. You can think of Bitcoin as a kind of identity management system. The blockchain stores transactions mapping public keys to each other and monetary values. As long as you remember the private key matching your public key you can issue transactions on the blockchain. Contrary to common belief Bitcoin is not stored on your hard drive, they contain only your private keys. The monetary units themselves, “UTXOs”, are stored on the network of Bitcoin nodes distributed all over the world.
vinay_ys 6y ago
If you have a $100 currency note in your hand, you can spend it as long as there exist someone who believes there is a market for $100 bills. Same as with a gold coin. But if you have a $100 in your bank account, there is an additional constraint – you can spend it only if your bank is alive and functioning correctly and lets you specifically (you are not sanctioned/banned) to spend it. Same is the case with bitcoin for those who store their private key on exchanges. First there should exist a market for it (others who also believe bitcoin has value). Then, just like banks, the bitcoin exchanges where you escrowed your key have to let you spend it through them. If all exchanges you have access to in your country decide to ban you (because your govt told them to) then you cannot spend your bitcoin. In this way, bitcoin and your bank account balance are similar and they both are different from hard cash in hand or gold coin in hand. If you hold your private key yourself and run your own bitcoin lightweight node to connect to bitcoin network and submit your transactions, then you don't need exchanges. Even then, others who use exchanges maybe blocked from transacting with you through govt sanctions etc.
- throw0101a 6y ago
  > But if you have a $100 in your bank account, there is an additional constraint – you can spend it only if your bank is alive and functioning correctly and lets you specifically (you are not sanctioned/banned) to spend it. Given my bank is on the list of "systemically important banks", if it goes under/down there's probably more going on in the world such that I probably won't be worrying about my proverbial $100 too much: * https://en.wikipedia.org/wiki/List_of_systemically_important_banks https://en.wikipedia.org/wiki/List_of_systemically_important... (And I do have accounts at multiple banks in case of IT problems at one bank.) > If all exchanges you have access to in your country decide to ban you (because your govt told them to) then you cannot spend your bitcoin. Of all the things that I could worry about going wrong in my life, these doomsday scenarios are not even in the Top 1000. I'm more worried about stubbing my toe than some of these currency collapse scenarios that some Bitcoin fans come up with.

codehalo 6y ago

Bitcoin is not stored on your HDD, or on a local wallet. The "local wallet" simply points (or references) an address on the bitcoin blockchain. There are obviously more details, but you can do your own research.

lxgr 6y ago
Isn't this functionally equivalent to the statement "(access to) the coins is stored on your HDD" for most purposes? Not all discussions require the highest level of technical detail.

krb686 6y ago

As codehalo pointed out, there's no magnetic pattern that represents coins on your hard drive. There is a magnetic pattern that represents your private key for your wallet (if you store it there), which possession of you might equate to possession of the coins to since without it they can't be used. Still, access isn't really possession is it. I can lend my house key to a friend but they don't possess my house. The deed is what really declares me the owner. In the case of your coins, it's the consensus of the blockchain.

Grustaf 6y ago
Bitcoins are like bearer bonds. Unlike houses.