Let’s share some ideas:😞 But first, can you see Ben Franklin’s disgust?😞
People have been asking this question a lot lately: can people really buy things with Bitcoin? The answer is yes — but it’s not as easy as you might think. Bitcoin payments are handled through something called the Lightning Network. But what is the Lightning Network, and how does it work? In this blog post, we will explain a philosophy about the Lightning Network, including its benefits and potential obstacles.
Recently, the media reports how Russia and Ukraine have shifted some of the war dialogue to sanctions and the adoption of cryptocurrencies. We won’t go too far into that conversation except to draw attention to the philosophy. There is a concern, or belief, or hope that Russia, or anyone really, can avoid sanctions and government restrictions or oversight by using cryptocurrencies. Some articles say that it is possible while others say that it is not possible. (Do a search, you’ll find what you’re looking for. Here, Here, Here, Here, & Here, plus others.) We think the answer is probably somewhere in the middle…and it depends on the use. But, lets save those conversations for another day.
Today, we are focusing on Bitcoin’s ability to become a fiat, or specifically, a USD alternative when it comes to a global tender. Currently, the U.S. Dollar is the global standard. Some say the biggest export of the United States. But, what if the USD was NOT the standard? OR, what if the USD wasn’t the ONLY standard? Essentially, if Bitcoin is to be the digital equivalent to the gold standard, and people are expected to exchange Bitcoin for goods and services, how is that possible and does it threaten the US/D?
The Lightning Network:
The Lightning Network is a system that allows Bitcoin users to make instant, low-cost payments. It works by creating a network of Bitcoin users who agree to hold some of their Bitcoin in a shared “channel”. When one user wants to make a payment to another user, they can do so instantly and without having to go through the Bitcoin blockchain. Ok, what?
In other words, the Lightning Network allows Bitcoin users to conduct transactions without having to wait for confirmations. This makes it possible to use Bitcoin for payments in everyday life, and eliminates the high transaction fees that are commonly associated with Bitcoin payments.
The Lightning Network is still in development, and there are some potential obstacles that need to be addressed. But, if it succeeds, it could revolutionize the way we use Bitcoin…and potentially cryptocurrencies as a whole.
It can’t be ALL good news…Some potential obstacles facing the Lightning Network include:
– Security vulnerabilities
– Lack of user adoption
– Centralization concerns
– Bitcoin price volatility
But despite these potential obstacles, the Lightning Network has a lot of potential and could revolutionize Bitcoin payments. So far, it has been successfully used to make payments for a variety of goods and services, including coffee, beer, and even a pizza!
So, can people really buy things with Bitcoin? Yes, they can! And with the Lightning Network, Bitcoin payments are becoming more and more convenient. With each new adoption, Bitcoin gets one step closer to becoming a mainstream currency. Who knows, maybe one day you’ll be able to pay for your morning coffee with Bitcoin.
But further, if Bitcoin may be regarded as the cryptocurrency equivalent to gold, and it may be used to exchange for goods and services, is there a day where Bitcoin is simply an alternative to the USD in the global economy? Is there a world where they both exist?
What do you think? Do you have Bitcoin in your wallet? You can find more information about the Lightning Network here. Do some research. You might be surprised with what you find. Oh, and give us a clap. 👏🏾