Can Bitcoin and Lightning Network Bring Better Business Profits?

Where people once reluctantly accepted transaction fees as part of their lives, Bitcoin and the Lightning Network threaten the dominance of payment giants and remittance companies. Host and investment expert Anthony Pompliano interviewed writer and entrepreneur Jeff Booth during a new episode of The Best Business Show.

The two delved into the future of Bitcoin and El Salvador while examining how the Lightning Network could spark deflation.

Credit based system vs. new reality

Booth called Bitcoin “the safest commodity” and the “King of all assets at this time” and talked about living with a Bitcoin standard where more money could not be printed at will. He said,

“What would happen with the Bitcoin standard is that prices would keep falling. So it would make the free market possible [that] the abundance gained by technology would be more widely distributed. “

However, Booth cautioned against viewing deflation as an ultimate goal. He explained that in the current credit-based system, deflation could lead to bank failures and even the collapse of society.

Technological disruption

Pompliano and Booth agreed that they were both optimistic about developments in El Salvador. With regard to the Lightning Network, Booth noted the disruption that second-layer technology could cause for payment giants like Visa. He noticed,

“That means, as a company, you could increase your net profit or your bottom line by that amount. And when companies operate with low margins, that is a huge amount to increase their profits [by]. But the companies will make this possible. “

Booth cited Starbucks and McDonald’s as possible examples and discussed how companies that generate more profits thanks to reduced transaction fees have an incentive to lower their prices worldwide.

It’s still at the beginning of the #Bitcoin Lightning Network, but when companies realize they can cut transaction fees and increase their profits by 2.5-3.5% by canceling Visa or Mastercard, what do you think will happen ?
I start now….

– Jeff Booth (@JeffBooth) September 10, 2021

Analyzing the situation in El Salvador, Booth stressed the volatility of the US dollar and the country’s pre-bitcoin economy. Using Instagram as an example, he mentioned how early adopters and users in an exploding network are getting the most out of it.

Lean in

Despite consumers’ shared hatred of transaction fees, payment giants like Visa and Mastercard are far from losing the race to DeFi. Visa bought a CryptoPunk worth around $ 150,000 on Ethereum. Anchorage Digital, a cryptocurrency-based financial platform, helped Visa purchase the NFT.

In the meantime, Mastercard has planned to acquire CipherTrace, a provider of cryptanalysis. CipherTrace previously received funding from the US Department of Homeland Security.

These developments are a reminder that Bitcoin and the Lightning Network cannot guarantee decentralization on their own.

However, Booth was more positive, saying:

“… here, too, technology that empowers people and lowers the price of things is very, very difficult to stop.”

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