It's a pretty large downside. The only upside I've heard is that you could avoid oppression or government theft. However, I'd contend that a government that would directly rob your bank account isn't exactly going to stop at just that.
Only if you live in a democratic country with fair courts.
I get the feeling that 99% of blockchain users/proponents aren't in that circumstance.
Consider also the scale: what percentage of cryptocurrency users live in regimes like that versus the percentage who have functioning courts but are one exploit/phish away from irrecoverably losing all of their cryptocurrency?
You assume that from the blockchain kidnappers can find out who I am. I don't think they can, unless I exchange crypto with them.
>Consider also the scale: what percentage of cryptocurrency users live in regimes like that versus the percentage who have functioning courts but are one exploit/phish away from irrecoverably losing all of their cryptocurrency?
People always make mistakes. Do you suggest to prohibit every possible action which might lead to bad consequences? Do you suggest to damage people in need in order to save those living with good conditions?
Sure, if you live like a monk and never talk about it, you can probably avoid attention but there are plenty of people who thought they could do that successfully up until they didn’t. Again, it’s not a problem with a technical fix.
I have more trust in the correctness of encryption than the reliability of the justice system.
HOWEVER, that's not what's at issue with crypto. The issue of crypto is that it's irreversible. It absolutely does exactly what you tell it to do, and no more. But, at the same time, that means that when non-algorithm mistakes or exploits (ransom, cons, etc) happen you have 0 recourse to fix it.
There's a reason crypto is the preferred method of wealth transmission for scam artists, hackers, and ransomware.
If someone steals your coin... That's it. Game over. There's no way to force them to give it back. Assuming they are in the same country as you and you can identify them, then you might be able to start legal proceeding to get your money back, but even then, nothing you can do will force them to return whatever coin they have. If they die, game over, the coin is lost forever and the best you can hope for is their estate has enough value in it to recover the loss.
An error on the side of the bank gives you a clear target for legal action to recover funds, and barring you having more wealth stolen than the bank has value (unlikely), you'll get your money back.
The security of the block chain is both a boon and a curse. It allows the blockchain to operate without a central controller, but it also, by design, makes transactions irreversible.