this post was submitted on 11 Jul 2024
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Privacy
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There are many payment services that require pretty much nothing from the server/instance once implemented, and doesn't cost anything for the instance (the fees are taken from the payer), specifically to address the issues you mention. It's already a solved issue.
With bitcoin everyone now has to go to an exchange to convert the pseudo-currency to actual usable currencies, which is a much more annoying middleman IMO, which will then also take a cut.
And what are the fees like on those services? Does their fee structure work for micropayments? And do they support every country out-of-the box or are there some they don't support? How do they handle chargebacks and counter-party risk? What is their settlement time? Do they occasionally freeze accounts for seemingly nonsensical or political reasons? Since we're on the privacy community, how is their privacy? Can you, for example, sign up as an instance admin and automatically have them forward payments to content creators, or would you need to custom-code that through an API and then register with a non-standard account because now you aren't a regular user but an intermediary? Try being an "intermediary" on Paypal and your account will get shut down very quickly, because you aren't allowed to do that. You'd have to custom negotiate a special deal with them and fill out a bunch more paperwork and probably pay higher fees and meet a bunch of other requirements like being incorporated and obtaining insurance and auditors and the list goes on and on.
Ask anybody in the adult industry how much trouble they have getting access to these services even though the business they are engaging in is perfectly legal. Not grey area legal, fully certified legal by the US Supreme Court and appellate courts up and down the system for decades.
Answer these questions and you start to see the appeal of not having a third-party custodian do all this. Bitcoin lightning can do all of this, instantly, for 10-1000x less fees and massively less complication. You can say you don't like crypto, that's fine, but it's legitimately better at solving these kinds of problems which is why adoption has been growing for 15 straight years.
But it's not objectively better, because you can't fucking use it. It's digital tokens that are literally unusable until exchanged for real currencies, which brings the need for exchanges in to the picture (see my edit above).
You don't have to convert it to fiat if you don't want to, plenty of people use Bitcoin as currency, that is the entire point. Users tipped each other nearly a million USD worth of it on nostr int he last two months ($950k). You can go to any major city and find place to buy/sell/spend it. Many places online accept it too, of course. The network effect is quite large. Bitcoin's market cap is larger than sweden's GDP. It moves trillions of dollars of value every year. Not people "hodling", people using it to do funds transfer.
But if you want to, you can absolutely convert it, with a single click. Those middlemen typically take a lower cut since they're doing conversion not sending/receiving/settlement which is a much risker and therefore expensive service. There is, for example, no counterparty risk if you convert somebody's BTC to their native currency, but there is if you transfer that person's money to another person or act as an intermediary. I use strike for this, strike's conversion fee is less than 1%, in many apps or exchanges, conversion is literally free because the app wants to incentivize you to store money with them and because it's just updating some row in a database.
Except for less than a handful of countries worldwide, bitcoin can't pay your rent, your mortgage, your groceries, your gas, your tuition or anything in day-to-day life. It is effectively not usable as payment for basic things yet, you would die if that was all you had.
I can spend money (even digitally) without any fees at all, no functional delay (as in, I'm not bothered by the technical delay), no need to convert it and wait for the fiat to be paid out to me from an exchange. that is not doable with crypto.
Crypto may get there one day, but it is still very far from being there after 15 years.