Bitcoin and the Banking System – What’s Next?

For a time, some people have thought that cryptocurrencies are amazing and the state of the art and that the fact that the financial system is wary of them and in some cases is even rejecting them show shows how little the financial system knows about trying to adapt and including other forms of payment. However, it now looks like the financial system knew more about the matter and that cryptocurrencies were only suffering from a form of arrogance.

Claims against Lightning

Lightning is a second-layer network that will hopefully bring Bitcoin to the mainstream level. Now we are not exaggerating when we are saying that Lightning is a very complex system that is difficult to explain both to someone with little experience that is trying to understand it and also to someone within the community. However, a claim is going around that states that Lightning is not an IOU. The argument around this issue ill-based and easy to deconstruct, it all fixates on linking this statement with a hefty discussion about how banks employ an IOU system.

There is also talk going around that Lightning has only been created so that the banking industry could have a way to get their hands on Bitcoin and operate it remotely. Yet again, this argument is flawed and far away from the truth. Have we mentioned by now that these two arguments come from an article written by Cryptoconomy where he states his opinions about Lightning? If not, it is only right that we do so because it is not fair that we do not.

One of the last argument of this discussion about Lightning that we would like to state is that Lightning does have the potential to become a worthy competitor to VISA, but that will only happen in the future with the condition that Lightning will be set on a path of constant growth and evolution.

Nicole Hicks

Nicole Hicks a graduate of UFT. She’s based in Toronto but travels much of the year. Nicole has written for NPR, Motherboard, MSN Money, and the Huffington Post. Nicole is a financial reporter, focusing on technology, national security, and policing.

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