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0 pointseterm8y ago0 comments

Or a second transaction layer, like a bank or VISA?

At which point, why not use those same layers over USD instead of over bitcoin?

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4 comments · 2 top-level

AgentME8y ago· 2 in thread

>Or a second transaction layer, like a bank or VISA?

* They don't transact bitcoin.

* They don't transact your (non)bitcoin in a decentralized way. They alone run the software and are in control of changes and restrictions, including who you're allowed to send to.

* You don't hold the private keys to your (non)bitcoin when it's a bank or VISA or Paypal. They own it for you. They can lock your account and maybe give you the privilege of putting yourself through some asinine process to regain access to it.

The lightning network is a "second layer" that still is decentralized and puts users in control of their own funds.

etermOP8y ago

Second layers over bitcoin won't have those properties you've mentioned either.

AgentME8y ago

Is this word play over "second layer" or something? The Lightning Network is an example of one that's decentralized and keeps users in control of their own funds. All lightning network transactions are settled within normal bitcoin transactions, and any funds locked up within a payment channel can be unlocked by either party without needing cooperation of the other.

babuskov8y ago

Because moving USD across borders usually includes declaring the source and type of income and taxing it. Bitcoin looks like a big tax-evasion scheme at this moment because 1) laws aren't clearly defined and 2) governments are unable to track what is going on unless BTC is converted to/from fiat.

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