#LightningNetWork thread.
LN has fees. If someone tells you it's free, they're either lying to you or they're paying the fees for you and not telling you, which is a huge red flag. A common tactic of SV VC's to "disrupt" a currently thriving ecosystem is to drive prices..
LN has fees. If someone tells you it's free, they're either lying to you or they're paying the fees for you and not telling you, which is a huge red flag. A common tactic of SV VC's to "disrupt" a currently thriving ecosystem is to drive prices..
2/ down through subsidizing the service with funding from VC's. Think Uber and Lyft. Both companies were heavily funded by VC's and they used that money to undercut taxi rates in all major cities while still paying the Uber/Lyft drivers a solid wage. To be clear, this tactic is
3/ is unsustainable. The VC goal is to destroy the current infrastructure in place (medallion taxis) before their funds run out, because if their funds do run out the true cost of the Uber/Lyft service will be seen and people will see that driving for Uber/Lyft is a pay cut
4/ compared to driving a medallion taxi on average.
So what does this have to do with LN? @ln_strike is claiming that it's "free to use the app". That's technically a lie. The app is covering the fees for the users, because LN has fees. So if Strike is paying those fees for the
So what does this have to do with LN? @ln_strike is claiming that it's "free to use the app". That's technically a lie. The app is covering the fees for the users, because LN has fees. So if Strike is paying those fees for the
5/ users, the users need to ask themselves why Strike and it's investors would subsidize those fees. From a basic economics standpoint, offering free services isn't profitable unless income streams come from somewhere else in the long run. So where does Strike think the revenue
6/ will come from in the long run? User data maybe? I know Strike demands an email address to be able to use their app. That's antithetical to "crypto" but it's a free market and some users won't care. Or maybe once that VC money runs out they'll begin charging their customers
7/ the true costs of using the app, with a little bit added on to make Strike financially successful.
This thread isn't a knock on LN. They chose a model they thought would work and this is a free market and if you want to pay fees because you think that's the costs of using
This thread isn't a knock on LN. They chose a model they thought would work and this is a free market and if you want to pay fees because you think that's the costs of using
8/ a network you feel is safe, then by all means, pay your fees. But if you're using LN and Strike because you think it's "free", then please educate yourself and remember that if something is free, you aren't the customer, you're the product. And if that's the case then why
9/ be in crypto at all? @jack
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