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 are threatening the dominance of payment giants and money transfer companies. In a new episode of “The Best Business Show”, host and investment expert Anthony Pompliano interviewed author and entrepreneur Jeff Booth.
The two delved into the future of Bitcoin and El Salvador while exploring how the Lightning Network could trigger deflation.
Credit-based system vs. new reality
Calling Bitcoin “the safest asset” and the “king of all assets right now,” Booth spoke of living with a Bitcoin standard where more money couldn’t be printed at will. He noted,
“What would happen with the Bitcoin standard is that the prices would constantly drop. This would therefore allow the free market to [that] the abundance drawn from technology would be more widely distributed.
However, Booth cautioned against viewing deflation as the end goal. He Explain that under the current credit-based system, deflation could lead to bank failures and even the collapse of society.
Pompliano and Booth agreed that they were both optimistic about developments in El Salvador. Come to the Lightning Network, Booth Noted the disruption that second-layer technology could cause to payment giants like Visa. He remark,
“This means that as a business you can increase your bottom line or increase your profits by the same amount. And when companies operate on low margins, that’s a lot to be able to increase their profits. [by]. But companies will allow that.
Citing Starbucks and McDonald’s as potential examples, Booth discussed how companies making more profits, through saved transaction costs, would be incentivized to lower their prices all over the world.
It is still early on #Bitcoin Lightning, but once businesses realize they can cut transaction fees and improve profits by 2.5-3.5% by doing away with Visa or Mastercard, what do you think will happen?
Just to start….
– Jeff Booth (@JeffBooth) September 10, 2021
Analysis of the situation in El Salvador, Booth highlighted on the volatility of the US dollar and the country’s pre-Bitcoin economy. Using Instagram as an example, he noted how the first users and users of a growing network derive the most benefit from it.
Despite consumers’ shared hatred for transaction fees, payment giants like Visa and Mastercard are far from losing the race to DeFi. Visa bought a CryptoPunk worth about $ 150,000 on Ethereum. Digital anchor, a cryptocurrency-based financial platform helped Visa buy the NFT.
These developments are a reminder that Bitcoin and the Lightning Network alone cannot ensure decentralization.
However, Booth took a more positive view and noted,
“… Again, the technology that empowers people and lowers the price of things is very, very hard to stop. “