Bitcoin a powerful technology, but not invincible

Nick Szabo, a major figure in the cypherpunk movement, dismantles the idea of an indestructible Bitcoin. According to him, the flagship crypto indeed cannot withstand everything. It remains vulnerable to laws, states, and certain internal abuses. Enough to dampen the enthusiasm of maximalists! More details below.

Thinking that Bitcoin withstands all government attacks is madness

This shocking statement summarizes Nick Szabo’s position. In his view, no blockchain indeed operates in isolation. Practically, every layer 1 network has a legal attack surface. And Bitcoin is no exception.

This simply means that crypto regulators, judges, and legislators can exert effective pressure on Bitcoin network operators. Miners, validating nodes, and wallet providers remain exposed (especially in democratic countries).

Szabo therefore openly criticizes the anarcho-capitalist ideology that sometimes surrounds Bitcoin. According to him, the network does not replace law. It coexists with it.

New vulnerabilities created by non-monetary use

The rise of non-financial uses on the Bitcoin blockchain particularly worries the expert. He argues that the integration of files, images, or metadata via protocols like Ordinals or Runes increases risks. These arbitrary data could, he says, justify sanctions or censorship.

The debate between the Core and Knots versions of Bitcoin software reveals an internal rift. Some developers indeed denounce a weakening of the network’s primary crypto mission: providing a decentralized digital currency. Current abuses risk diluting this direction.

Bitcoin remains “trust-minimized,” not “trustless”

In his analysis, Nick Szabo nuances another often misunderstood concept: zero trust. Bitcoin does not eliminate trust, it reduces it to the bare minimum. One must believe that:

• developers maintain the protocol;
• participants respect the consensus;
• the overall legal system does not collapse.

Bitcoin’s robustness therefore does not rely on magic, but fragile balances. In this sense, the network works better than a centralized system, but does not become indestructible for all that.

Thus, Bitcoin is not just code. It also lives in law, economy, and society. Indeed, Szabo reminds us that even the most robust technology never fully escapes the real world.