This app auto-invests in Bitcoin for you...
GM, we take the latest Web3 news and translate it into plain old English - so you can stay up to date, without your eyes glazing over.
In today’s edition:
Robinhood embraces the lightning
Surprise! We're all getting (metaphorical) PlayStations
RESOURCE: Bitcoin’s Lightning Network, explained in ~5.5 mins
This app will auto-invest part of your paycheck into Bitcoin
Robinhood embraces the lightning
'Robinhood embraces the lightning' - what is that? The title of the hottest new rock opera on Broadway?
It absolutely could be. But it's not.
The stock and crypto trading app, Robinhood is bringing the Bitcoin Lightning Network to its platform, which will make trading BTC faster and cheaper.
Heads up: this next bit is going to sound pretty dry and boring, but bear with us, there's a bigger picture to be seen here...
The Lightning Network is a layer 2 (see translation) solution that cuts Bitcoin transaction times from 10-60mins down to milliseconds, and fees from $1.50-$60 down to ~.04c.
Why this is important:
Bitcoin was first pitched as a digital form of cash, but as it grew, it started to become seen more as a digital form of gold.
I.e. people aren't using it to buy their groceries as much as they are as a long term store of value.
So let's look at the stats of Gold vs. Bitcoin (run on the Lightning Network) as a 'value vehicle'.
Gold
Hard to divide (requires melting down and recasting, which makes it a poor medium of payment)
Hard to move at scale (months by sea and A LOT of security, which makes it expensive to physically trade)
Total max supply unknown (underground reserves are still being found, which lowers scarcity and effects value)
Bitcoin
Highly divisible (up to eight decimal points, which means it can be just as easily used to buy a coffee as it is a super yacht)
Easy to move at scale (you can move $1B in milliseconds for .04c in fees, which makes it 750x cheaper than a bank wire)
Total max supply known (there will only ever be 21 million Bitcoin made, this built in scarcity is designed to increase its value over time)
If you've ever wondered why investors like Michael Saylor say wild things like 'Bitcoin is the apex predator' of the financial world...this is why
In many ways, Bitcoin takes the best features of the old product (gold) and fixes its flaws.
Surprise! We're all getting (metaphorical) PlayStations
Did you ever pester your mom for a PlayStation, only for her to say no, claiming 'it will rot your brain'.
But then, after years of your sustained badgering, she started to show signs she might be about to give in, saying things like:
"I'm not saying you will be getting one...but if you were to get one, I'd be limiting your play time to 2hrs a day"
Then BOOM, all of a sudden you're spending your afternoons tearing it up on Tony Hawks Pro Skater 2.
A similar situation is playing out with the US Treasury Secretary Janet Yellen (Mom) and crypto (the PlayStation).
She recently voiced some warmer than usual thoughts on regulation in the space:
"Our regulatory frameworks should be designed to support responsible innovation while managing risk – especially those that could disrupt the financial system and economy".
Baby steps, yes. But that's to be expected.
Point is, we're moving in the right direction!
Resource of the day
Bitcoin’s Lightning Network,
explained in ~5.5 mins
This app will auto-invest part of your paycheck into Bitcoin
What's happening:
Users who receive their paycheck through Cash App's direct deposit function can now opt for a percentage of each deposit to be automatically invested in Bitcoin.
The problem being solved:
Getting set up to buy Bitcoin (or any crypto for that matter) is not the smoothest of experiences.
This past Monday I helped my dad set up an account on a crypto exchange.
It took about an hour for us to get through the exchange's 'Know Your Customer' compliance checks, which in our case was fine - we saw it as a fun excuse to hang out and chat crypto.
But for many looking to dip their toes into the 'crypto pool', this process will seem like more hassle than it's worth.
Seamless, 'hands-off' functionality like Cash App's auto-buy feature might convince them to dive in.
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Alright, that’s it for this fine Friday!
Love to the family,