Bilderberg Group funds Blockstream
Blockstream sidechain business
So whose best interest does Bitcoin Core Developers have in mind here? Side chains or Bitcoin?
Did anyone ever ask them who is going to vet these side chains? Or will this become another fiat ponzi scheme. Print baby print??
Why is there no such thing as fork protection yet? lol This cash is cores fault if they'd just go to 2mb blocks but then that ruins their side chains...
Follow the money and investors... trust but verify... unless you like giving your money away...
Anyone can run a lightning node including me and you and it's trustless there is no vetting any bad players will just loose money it's the way its designed
Say we have a payment channel and I try and cheat you then you can just claim everything and I loose everything so it's in my interest to be honest
Tek,
quit lying , you know it is not about being able to run a very small hub.
(You don't have enough money to back a hub large enough to even be a concern.)It is the Large Hubs that are going to act as banks and report everything to the govenrment.
Including starting fractional reserves.
https://forum.bitcoin.com/bitcoin-discussion/how-the-lightning-network-could-ultimately-destroy-bitcoin-t21092.htmlThe re-emergence of fractional reserve lending
At this stage, hubs would be financially incentivized and able to hold fractional reserves to start loaning out depositors' bitcoins to borrowers
Embrace, extend and extinguish
So at this point, the lightning network would effectively either merge with or morph into a simile of the current banking system.
Just as gold used to be physically ferried around in an expensive and inefficient exercise to conduct settlements between banks, bitcoins will instead be used to settle between hubs.
Assuming that this system takes over completely from the current global banking system, then the mining fees for these settlement transactions might be truly astronomical, say $1,000 per transaction.
So in the end, Bitcoin would be priced out of reach of everyone except financial institutions.
Once it becomes particularly awkward and expensive for people to take delivery, due to these sorts of fees, Bitcoin's relevance will be gradually de-emphasized and eventually detached from the financial system by government decree—exactly as happened with gold in recent decades.
What went wrong
So how did this happen?
The primary incentive for the growth of fractional reserve Bitcoin banks will come from any economies of scale in the costs of issuing transactions.
So for instance, this applies where a service provider with a lot of capital can make transactions on behalf of its customers much more cheaply than the customers could themselves.
Currently—or at least until very recently—no such economy of scale exists, primarily because there is currently no (well established) mechanism for aggregating multiple arbitrary payments into fewer or smaller blockchain transactions.
With the Lightning Network however, heavily capitalized hubs will be able to make transactions at negligible marginal cost, while end users will need to spend a far larger relative chunk of their money opening and closing channels.
As a result, there is an inescapable and huge economic incentive for hubs to act on behalf of their customers to issue transactions for them.
This is fertile ground for hubs to then become banks, start up fractional reserve practices, dilute the money supply, gradually divert attention away from the underlying asset (Bitcoin) and ultimately detach it entirely from the financial system.
What can we do?
There are no doubt many clever ways to avert this possible future.
One way is to ensure that the base layer is friction free.
That is, we should aim to minimize the time and cost of on-chain transactions.
This will leave no room for the growth of professional financial middlemen to re-emerge and reintroduce their bureaucracy, enforced mediation, censorship, monetary meddling, confiscation, counterfeiting, bailouts, bail-ins and wildly disproportionate influence and control they wield over the direction of the development of civilization.
Bitcoin Cash can replace segshitcoin and block these fractional reserve LN Hubs run by the banking cartels.╥Aztek
Since a payment channel can be as little as 0.1BTC or less im pretty sure I have enough it's even recommended to only open small channels as it's destined more for small micro transactions you have no idea how much I own apart from what you can see in the donation addresses in my sig