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There is no bitcoin needed for this at all its does not even move on the chain for the transfer. Both sides are Strike entities all this does is use bitcoin as

by noxer 5y ago

There is no bitcoin needed for this at all its does not even move on the chain for the transfer. Both sides are Strike entities all this does is use bitcoin as a bridge for USD to USD which is completely pointless as both sides are USD. You could just buy USDT (or another stabelcoin) and send it there. Its a different story if there is actually a switch in currency needed. There is this famous and from bitcoin people often hated company called Ripple that specializes on cross-border settlement using crypto as a bridge currency. For that however the crypto must be actually moved and be sold locally for the local currency. And for that to work without risk due to volatility it must be fast. Hence they use XRP (4 sec) instead of bitcoin (10+ min). They call it ODL (On-Demand Liquidity). See https://ripple.com/ripplenet/on-demand-liquidity/ https://ripple.com/ripplenet/on-demand-liquidity/

krick 5y ago
Please somebody explain why it's downvoted. Ignoring digression about XRP, this is exactly what I read from the parent comment. Judging by the user-story above, all this talk about how BTC is being "sent" (which, as we all know, is a small lie on it's own, since unlike fiat, BTC is never really being sent anywhere) seems just to distract us from the fact that we just end up buying USDT for USD. No BTC involvement required.
- noxer 5y ago
  Most of HN down votes anything about bitcoin and a few HN bitcoin fans down vote anything "negative" about bitcoin and certainly everything involving XRP. So to no surprise this is being down voted. >No BTC involvement required. Totally correct. Remittance over a bridge currency only make sense under very specific conditions, which include that the input currency and the output currency are different. And a direct exchange is not possible or not cheap. The traditional banking system does this as well, they usually use USD as bridge. To pair every currency with every currency simply isn't feasible and the low volume pairs would have no liquidity anyway. Its basically the same as with goods if you have wood but want metal you use a currency as bridge because there is no market to sell wood for metal. Now if you also have a location difference between the market where you want to sell and the mark where you want to buy then you actually can use the bridge currency to move from one market (location) to another market (location).

by noxer 5y ago

krick 5y ago

Please somebody explain why it's downvoted. Ignoring digression about XRP, this is exactly what I read from the parent comment. Judging by the user-story above, all this talk about how BTC is being "sent" (which, as we all know, is a small lie on it's own, since unlike fiat, BTC is never really being sent anywhere) seems just to distract us from the fact that we just end up buying USDT for USD. No BTC involvement required.

noxer 5y ago
Most of HN down votes anything about bitcoin and a few HN bitcoin fans down vote anything "negative" about bitcoin and certainly everything involving XRP. So to no surprise this is being down voted. >No BTC involvement required. Totally correct. Remittance over a bridge currency only make sense under very specific conditions, which include that the input currency and the output currency are different. And a direct exchange is not possible or not cheap. The traditional banking system does this as well, they usually use USD as bridge. To pair every currency with every currency simply isn't feasible and the low volume pairs would have no liquidity anyway. Its basically the same as with goods if you have wood but want metal you use a currency as bridge because there is no market to sell wood for metal. Now if you also have a location difference between the market where you want to sell and the mark where you want to buy then you actually can use the bridge currency to move from one market (location) to another market (location).