Do people using LN channels have any clue how people pay bills?

2019-05-29T20:37:28.000Z Honest Cash

Do people using LN channels have any clue how people pay bills?

After reading another reddit thread about how many LN transactions vs Bitcoin BCH transactions you would need to make to cover the cost of the BTC TX fee I started thinking. Do the people pushing the use of LN even pay bills or know how to? There are always replies like you just put all your money into a channel and you are done or you open a channel in advance. Well I hate to break it to these people but that's not how real life works.

First of many people live paycheck to paycheck. They can't just open a channel in advance as they don't have the funds to do it. Even for people that do have the funds how many know what their expenses will be? I sure don't. Sure I know what my internet, phone, and satellite will cost (assuming they don't go up that month). But I don't know what my other bills will be until I get them. I don't know how much my gas, electric, or water bills are going to be. I don't know how much I'm going to spend on food. I absolutely have no idea what I am going to spend eating out if I even do. Then there are those expenses that just come out of nowhere like a new hot water heater, freezer and now a new AC as that just went out this weekend.

So these people expect you to see into the future and open a channel to cover both known and unknown expenses with money you may not have yet. I'm not talking credit or loans just money that hasn't arrived yet. Could be a paycheck. Could be a wire transfer. Could even be a cryto transfer taking a long time to confirm or waiting to clear an exchange. You can't predict this stuff.

The way life works is you have some money to spend in a checking account. You get new money from somewhere (paycheck, social security, interest, fiat deposit, etc) or you move money from another account. You don't move that money until you need to. The crypto version of this would be buying with fiat or moving from cold storage to hot wallet. You don't leave your coins in a hot wallet it's bad practice and terrible for security. LN requires it be in a hot wallet.

This whole open and fund a channel in advance for everything mantra is just total BS. It doesn't work in real life. The only way it would is if you got paid via LN and never closed any channels. At that point you aren't using bitcoin at all so what is the point?

Responses


RE: Do people using LN channels have any clue how people pay bills?

by @Tuventure

Honestly, no.

The perspective to lay down first - and premise as well - are most of these Reddit users are in USA. In other words mostly American citizens. Part of American consumerism, daily financial life is US style. Hence likely lots of credit cards usage - again - American style usage. (*compare example to credit card usage style in Singapore, mostly these charges are paid in full the following month)

Knowingly it is suffice to say, most of these users don't have the financial power to comprehend the methods of credit card psychology and fundamentals. True or untrue?

One American friend claims credit card set them free to be individuals. To able to own a IPhone today (*sorry NOW). Instead of me, measly taking another 24 months to save up. Alas, I don't subscribe to Apple's hegemony. Fortunately. Rather.

Hence with that, I can surmise that a good 80% of them would have simply no full understanding of how LN nor even a basic bitcoin blockchain functions.

The example in real life is this:

If the ATM machine my bank card uses is 500 metres away and I could save $1, I would walk to that machine. You may say in protest that time is money, hence I may have wasted more. But here. I would and am, fully prepared financial fighter, hence I would have planned my monthly cash withdrawal amount way ahead and not have this mini predicament of using an ATM that would charge an extra fee.

Sounds a bit harsh.

But that is the reality. Some of us are financially independent in the knowledge and wisdom of how it all works. Some aren't. Many aren't. And many average persons aren't. Some rich people aren't too. Just read the news of how some multi-platinum hit maker embroiled in fines, Legal fees due to late payments on their bodyguards, or houses. Bankrupt even for some.

Many will never understand LN and even if we showed them a tipprbot is effectively an advanced version of LN, they won't believe you.

As a side note, Selena Gomez did state her mom sometimes have to dig their car seats to find coins to pay for their petrol. Before she got famous. The fact is many people are unable to master the basics of daily financial planning, because ironically the experts selling financial planning, are the ones planting wrong methods of financial management - to sell more of their insurance packages, banking products, funds. And we all know why there was Occupy Wallstreet. (*or have we forgotten - so fast?)