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More accurately: - Transactions are more expensive in BTC for small amounts, and more expensive in Visa for big amounts. - However this is only true if you us
by BiteCode_dev 4y ago
More accurately:
- Transactions are more expensive in BTC for small amounts, and more expensive in Visa for big amounts.
- However this is only true if you use on chain transactions for BTC. BTC transactions using lightning are always cheaper than Visa no matter the amount.
- Lightning nodes do not yet form a network big enough to cover 100% of the transactions, and most transactions are small, so the idea that VISA transactions are cheaper for most people is, for all intents and purposes, mostly true at the moment.
Lightning, though, is quite an interesting system. Half of the solution it offers is technical, but half of it will be the social construction of the network of channels. I doubt most people will open one consciously, but I assume wallet providers will make that automatic.
Eventually, this means somebody needing the decentralized aspect of BTC will be able to open a channel and profit, while somebody who wants convenience will use a centralized wallet and be happy.
I suspect most people will want the turn key solution and that the system will centralize a bit.
- richardwhiuk 4y agoLarge amounts aren't settled by VISA - they are settled by bank transfer.
- BiteCode_dev 4y agoDepends. I buy electronics with my VISA card for thousands of dollar, and clients sometime prefer to pay my gigs with a card as well. Anything above 3000 will likely be cheaper using BTC. But I see your point.
- woodruffw 4y agoThe last time I transferred more than $3000, it cost me $0. I used ACH.
- BiteCode_dev 4y agoSure, like SEPA in Europe. Although you are probably going to use your card to buy this: https://www.apple.com/shop/buy-mac/pro-display-xdr https://www.apple.com/shop/buy-mac/pro-display-xdr But again, I see your point: our financial system is already very efficient, BTC will have to be way better than it current is before it can compete with it for day to day use. I'll keep an eye on lightning though. It makes any transaction, no matter the size, instant, and cost a tenth of a cent. It has potential.