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This is not true. I'm sorry to post this twice but it's relevant to the discussion and also an answer to the OP. Strike (https://global.strike.me https://globa

by _iswk 6y ago

This is not true. I'm sorry to post this twice but it's relevant to the discussion and also an answer to the OP. Strike (https://global.strike.me https://global.strike.me) has built a product in which they use Bitcoin and the Lightning Network to send money (fiat currency like USD, EUR, etc.) around the world instantaneously and at virtually no cost. In some cases, they are able to offer exchange rates that are better than the inter-bank FX rate. Explanation of how it works: https://jimmymow.medium.com/announcing-strike-global-2392b908f611 https://jimmymow.medium.com/announcing-strike-global-2392b90...

robjan 6y ago
If they are able to beat the interbank rate it means they are either buying the currency from someone below market value (in which case that person is being shafted) or taking on Forex risk themselves.
- _iswk 6y ago
  From the article: > Strike maintains a live Forex rate and compares that to its own rate before every transaction. However, in our testing, a Strike international transfer has never been done at an unfavorable exchange rate when compared to Forex rates. Shockingly (or maybe not) it was even cheaper sometimes, exposing the flaws and lag in Forex rates and how they are used. Bitcoin, as the most liquid, globally transferable asset is already acting as the new world reserve currency with Strike.
  - robjan 6y ago
    A Forex trade is still taking place so there must be a counterparty. The USD don't just disappear and reappear as EUR. Someone is buying them on the other side. Getting a better rate implies the counterparty getting a worse rate.
    - _iswk 6y ago
      I'm not sure I understand your criticism. The USD is used to buy BTC. The BTC is then sold for EUR. There's no Forex trade, not directly at least.
      - robjan 6y ago
        If x EUR is worth y USD, any discount results in someone losing money or taking on Forex risk through some derivative product. It doesn't matter which settlement layer is used.
cuchoi 6y ago
Sadly still not available, do you know of any fully functional alternatives? Even if more expensive. Just surprised no one has done a Transferwise / traditional bank alternative yet considering it is one of the main publicized advantages of Bitcoin. Strike is promising a lot (which is exciting!) but don't have a fully functional product yet.
- _iswk 6y ago
  I'm not aware of any alternative. Hopefully the global launch is not too far away.

by _iswk 6y ago

robjan 6y ago

If they are able to beat the interbank rate it means they are either buying the currency from someone below market value (in which case that person is being shafted) or taking on Forex risk themselves.

_iswk 6y ago
From the article: > Strike maintains a live Forex rate and compares that to its own rate before every transaction. However, in our testing, a Strike international transfer has never been done at an unfavorable exchange rate when compared to Forex rates. Shockingly (or maybe not) it was even cheaper sometimes, exposing the flaws and lag in Forex rates and how they are used. Bitcoin, as the most liquid, globally transferable asset is already acting as the new world reserve currency with Strike.
- robjan 6y ago
  A Forex trade is still taking place so there must be a counterparty. The USD don't just disappear and reappear as EUR. Someone is buying them on the other side. Getting a better rate implies the counterparty getting a worse rate.
  - _iswk 6y ago
    I'm not sure I understand your criticism. The USD is used to buy BTC. The BTC is then sold for EUR. There's no Forex trade, not directly at least.
    - robjan 6y ago
      If x EUR is worth y USD, any discount results in someone losing money or taking on Forex risk through some derivative product. It doesn't matter which settlement layer is used.

cuchoi 6y ago

Sadly still not available, do you know of any fully functional alternatives? Even if more expensive. Just surprised no one has done a Transferwise / traditional bank alternative yet considering it is one of the main publicized advantages of Bitcoin. Strike is promising a lot (which is exciting!) but don't have a fully functional product yet.

_iswk 6y ago
I'm not aware of any alternative. Hopefully the global launch is not too far away.