Morgan Stanley Report: Bitcoin Has Reached Tipping Point

Not many people yet use bitcoin as a means of payment for everyday goods. This is because the transaction costs are high and not many stores accept the digital coin. However, this is changing, according to a report from investment bank Morgan Stanley.

Strike & the Lightning Network

The bank’s report states that bitcoin has reached an important milestone. Partly thanks to a collaboration between payment processors Strike and Blackhawk Network, it will soon be possible to pay quickly and easily with bitcoin (lightning) in many places in the United States.

Strike is a payment processor that uses the Bitcoin Lightning Network. This is a so-called second-tier scalability solution that makes bitcoin payments lightning fast and cheap. With the Strike app you can easily buy, sell, receive and send bitcoin. Strike uses the Lightning Network, which is a so-called second-layer scalability solution that makes bitcoin payments lightning fast and cheap.

The Lightning Network works on the basis of payment channels that users open to each other, with which mutual Bitcoin transactions can be done ‘off-chain’. Only the final settlement is registered on the blockchain. The usual transaction costs on the blockchain and the block time of 10 minutes are therefore hardly applicable anymore. It also provides privacy benefits. The Lightning Network is one of the ways the Bitcoin network can scale for mass use without sacrificing decentralization. Many people expect that more and more bitcoin transactions will take place via these types of ‘off-chain’ solutions in the future.

Strike makes it possible for companies and customers to make payments via the Bitcoin network, without owning Bitcoin themselves. The decentralized network is only used as a global payment network. As a result, customers can use their bitcoin for payments, while sellers receive dollars.

Morgan Stanley & Fidelity

The partnership between Strike and Blackhawk, a company that processes payments at physical points of sale in the United States, is a big step for bitcoin adoption, according to Morgan Stanley.

It is striking that the bank writes in the report that payments via the Lightning Network are a lot more practical than traditional debit cards. This is mainly because the transaction costs with lightning are minimal.

According to the bank, it is a milestone in the “evolution of bitcoin as a means of payment” . No less than 85% of all payments in the United States still take place in physical stores. The report cites bitcoin’s volatility as holding back its use. However, the more shops accept bitcoin, the less the price fluctuations will be, the bank says.

It is an interesting development that a bank of this caliber makes such statements. Bitcoin is increasingly seen as a means of payment and savings. For example, employees who are affiliated with the Fidelity pension fund can now save part of their pension in bitcoin.

It is not yet known when Strike will be available in Europe.

We previously wrote about Strike and the Lightning Network

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

© 2024 Cryptocoin Budisma.net