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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.

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.