The problem with El Salvador's implementation of BTC is they are using the custodial Lightning Network and onboarding people through that. They essentially have a BTC-LN central bank/node and all wallets are connected through it like bank accounts.
What if nations adopted BTC-LN for their people, like an account. But er can also have personal cold storage?
There was once a financial expert who said the government through the CAFR pulls in about $50,000 a year each person. Sort of like Alaska oil payouts. Everytime a citizen is born, not to an anchor baby, they get a BTC-LN account.
Folks in Nashville said we need reparations for inflation. It was a bankers war.
If you actually look into how LN works, it's essentially a fractional reserve banking system that overlays the BTC layer 1 network which enables all the same problems of the legacy financial system that Bitcoin originally solved.
The way they want LN to work is a pipe dream though. It has so many technical problems like channel liquidity and adds so many layers of complexity that makes it so you HAVE to use custodial services unless you want to run your own infrastructure which basically requires a computer science degree. It also introduces risks such as:
You have to open a channel with someone else to transact, pre-filled with the amount of BTC you want to transact over the long term.
You still have to pay the L1 fees to both open and close a channel.
You must be online in order to receive payment - this is not the case with base layer BTC.
If you can't be online 24/7 you need to set up a "watchtower" (i.e. pay a third party to watch for incoming transactions).
If you go offline your counterparty can close the channel and steal the funds.
You need to have 8-15 channels at any given time with other random people running LN with enough liquidity in each channel to support relaying transactions between other users.
BTC L1 is limited to 1 megabyte of transaction data every 10 minutes, so it would take something like a thousand years to onboard everyone in the world with a LN account.
There's more but like I said it gets really complicated. I've been using crypto since 2016 and I don't want to touch LN with a 100-foot pole.
El Salvador has Net reverse immigration because things are going so well.
The problem with El Salvador's implementation of BTC is they are using the custodial Lightning Network and onboarding people through that. They essentially have a BTC-LN central bank/node and all wallets are connected through it like bank accounts.
Isn’t lightning supposed to be better?
What if nations adopted BTC-LN for their people, like an account. But er can also have personal cold storage?
There was once a financial expert who said the government through the CAFR pulls in about $50,000 a year each person. Sort of like Alaska oil payouts. Everytime a citizen is born, not to an anchor baby, they get a BTC-LN account.
Folks in Nashville said we need reparations for inflation. It was a bankers war.
If you actually look into how LN works, it's essentially a fractional reserve banking system that overlays the BTC layer 1 network which enables all the same problems of the legacy financial system that Bitcoin originally solved.
The way they want LN to work is a pipe dream though. It has so many technical problems like channel liquidity and adds so many layers of complexity that makes it so you HAVE to use custodial services unless you want to run your own infrastructure which basically requires a computer science degree. It also introduces risks such as:
There's more but like I said it gets really complicated. I've been using crypto since 2016 and I don't want to touch LN with a 100-foot pole.