3 ms·
there is no external source of revenue for those payoffs. Josy wants to pay money to Tim. Tim is connected to the lightning network. So Josy also connects
by ArtTimeInvestor 5y ago
there is no external source of revenue
for those payoffs.
Josy wants to pay money to Tim. Tim is connected to the lightning network. So Josy also connects to the lightning network. For that, she needs Bitcoin. So she buys Bitcoin. Josy is the external source of revenue.
- kuratkull 5y agoYou have to think how that process started. Tim had to give something to Josy for Josy to have debt. If Tim is only working with bitmoney then no new money entered the scheme. If Tim sold some of his bitmoney to lend to Josy, and then josy bought it back, then no new money entered the scheme.
- ArtTimeInvestor 5y agoTim is a web designer. He made a website for Josy. Now Josy needs to pay him ₿0.01 That is what gives Bitcoin value. That Josy needs it to pay Tim.
- kuratkull 5y agoTim needs to spend real world money to be able to sustain his web development - so he has to sell his bitmoney.
- ArtTimeInvestor 5y agoMaybe. Still this constellation creates demand for Bitcoin. And demand creates value.