gteehan

gteehan t1_j1zg0mw wrote

An attempt: Traditional banking rails, governments, central banks, etc, are controlled by humans. Politics, corruption, greed, incompetence is hard to correct for. They are slow, and use countless middlemen making them expensive and incredibly inefficient. They have gone mostly unchanged since the 70s. Crypto, and specifically BTC is fundamentally different and its current and perceived inefficiencies are well on their way to being solved using a 2nd layer like Lightning.

BTC’s blockchain is slow, but Layer 2 solutions solve for this. People aren’t going to giving up their fiat anytime soon, but it won’t matter because everything will still be fiat on top while it’s using blockchain and real crypto (btc) behind the scenes.

You don’t think much about what is actually going on behind the scenes today, but it is wildly inefficient (days to send money and sometimes as much as 10-20% in fees when sending across borders).

Companies will be HIGHLY incentivized to get this to work because there is such a huge cost savings. Spending 2-3% every time companies need to accept or send payment doesn’t make sense. There are systems in development today that will reduce this to near instant and fractions of a percent in fees. They will pass this on to you to save you both money.

1