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The settlement times of the Dollar is instant if cash is used. Credit cards are fast, too. Even bank transactions are usually faster than 3 days. How do you ar
by bhaak 3y ago
The settlement times of the Dollar is instant if cash is used. Credit cards are fast, too. Even bank transactions are usually faster than 3 days.
How do you arrive at „3 days at best“?
LN transactions are usually not settled within minutes but when channels are closed. Anything else would negate their whole advantage. Are you thinking of rollups (which Bitcoin doesn’t have yet).
- AnthonyMouse 3y agoTraditional ACH transactions take days because they're not even transmitted to the other bank until the end of the day. Then you have to wait for their response. Credit cards are even worse. All you get instantly is whether the card info is valid and has that much credit. But it could be a stolen card or a customer who issues a fraudulent chargeback, and you may not find out about that for a month or more. Meanwhile you've long since delivered the goods.
- adgjlsfhk1 3y ago> But it could be a stolen card Ah yes and bitcoin is better here because it doesn't even try to stop stolen money from being used.
- krupan 3y agoSome people complain Bitcoin isn't anonymous enough, others complain that it doesn't have built-in protection that would absolutely require an invasion of privacy
- AnthonyMouse 3y agoCredit cards don't stop stolen money from being used, all they do is make it a theft from the merchant instead of a theft from the cardholder.
- majewsky 3y agoWhen I pay something via credit card in an online store, my bank's app gives me a transaction notification within 3-5 seconds. I don't know whether that means that the transaction has been fully settled, but at least it appears to be moving through the system rather quickly. > Traditional ACH transactions take days because they're not even transmitted to the other bank until the end of the day. From what I hear in the US, their banking system is slow to innovate outside of fintech providers. Here in Europe, SEPA Instant Direct Transfer allows ACH transactions to be settled within at most 20 seconds.
- greenyoda 3y ago> From what I hear in the US, their banking system is slow to innovate outside of fintech providers. Actually, the FedNow system, which will provide very fast transactions, is currently being deployed in the US: https://www.frbservices.org/financial-services/fednow/about.html https://www.frbservices.org/financial-services/fednow/about....
- krupan 3y agoBitcoin wallets can also give you a notification instantly that your transaction is "moving through the system" if that's all you want. The real test of transaction settlement time is how quickly you can withdraw physical dollars from the bank
- krupan 3y agoPaper dollar settlement times are fast, if you happen to be in the same physical location as the person you are transacting with. Everything else you mentioned is a transaction not an actual settlement of cash. When you pay with a credit card, for example, no dollars change hands. The credit card company promises to pay the merchant at some point in the future. I've heard it can take 2 weeks for actual dollars to show up in their bank account. Similar with all bank transfers, though usually more like 3 days. And of course, in all those scenarios with banks involved, you don't actually have a physical pile of dollar bills in a vault at the bank. You just have a promise of dollars from the bank. And they have all promised more dollars like that then they actually have.
- krupan 3y agoYou are correct about lightning transactions. Funds are settled in the Bitcoin layer when the two channel partners close the channel. I think that time can vary depending on the channel partners, but when they do decide to close, then it takes the normal Bitcoin "transaction" (settlement) time.