Bitcoin was undoubtedly created by Satoshi Nakamoto as a peer-to-peer exchange currency, intended to revolutionize the financial system and facilitate cross-border transactions. However, it quickly shifted towards speculative asset status, with figures like Michael Saylor amassing large holdings. Despite its decentralized nature, Bitcoin's distribution is becoming more centralized as fewer individuals hold significant amounts.
As someone who doesn't own BTC, I find myself in this position due to the misconception that one must possess a whole coin. Being far from wealthy, or better said, below the "world's average," owning any fucking bitcoin is currently out of reach.
Personally, I've always been an altcoins guy, even dedicating a few posts to why I believe Hive surpasses Bitcoin in certain aspects. Though I can't recall the titles right now, I stand by the notion that Hive has its strengths. While Bitcoin may be the undisputed leader in security, it's worth considering the frequency of blockchain attacks in our day-to-day lives.
While not a tech expert on Hive's inner workings, my instincts suggest that the recent hardfork has indeed bolstered its security and decentralization. But let's not delve into the technicalities for now...
Coinbase CEO Brian Armstrong recently echoed a topic I've emphasized over the years: cryptocurrency payments. Beyond speculating on assets like Bitcoin, Ethereum, and Dogecoin, it's evident that we lack significant use cases for cryptocurrencies as means of payment. While we do have USDT, USDC, and BUSD, there's a glaring absence of substantial developments in this area.
The next step for crypto is to make payments instant and free globally.
This will take lots of work from all of us, COINBASE included, getting layer 2's integrated, better on-ramps, simpler UX/onboarding, etc.
A magic threshold would be getting the average payment under 1 cent and confirmed in under 1 second. I think we'd see orders of magnitude more payments move to crypto if we can achieve that.
Today, crypto has the potential to improve global payments infrastructure, but it hasn't yet delivered on that promise as we're largely still stuck on layer 1. Payments are like water, they flow to the path of least resistance.
This is Brian Armstrong's original tweet announcing his collaboration with BINANCE to make instant crypto payments possible, and he's not alone in this endeavor within the industry. Binance has been in the game for a while with its VISA card, which I've personally used, but we can't consider it as a direct crypto payment method. The exchange actually sells your holdings for cash and pays on your behalf, creating the illusion of crypto payments.
Brian Armstrong's tweet received numerous replies, many from Bitcoin maximalists like Jack Dorsey and Michael Saylor, urging him to consider the Bitcoin lightning network. However, what caught my attention was @bil.prag's response, sharing a clip from @theycallmedan's talk explaining how the lightning network isn't as decentralized as it seems for blockchain payments.
As Dan pointed out, the Strike app, which enables payments via the Bitcoin lightning network, relies on the company's node (Strike) to facilitate transactions. This centralized aspect challenges the idea of complete decentralization for Bitcoin payments. On the other hand, Hive offers true decentralization, incredible transfer speeds, and is feeless. Instead of being tied to using the HIVE token for payments, we have HBD as a stable alternative, providing a decentralized payment system.
Many in the crypto space overlook the significance of decentralized payment options, likely due to the convenience of traditional banking methods. However, as restrictions may tighten in the future, more individuals will recognize the value of decentralized instant crypto payments. That's when Hive's HBD will prove its worth as a reliable solution. What's your take on this?
Thanks for your attention,
