- Andreas Antonopoulos recently spoke on the limitation of crypto currencies such as bitcoin when it comes to everyday payments.
- He highlighted that for many people, crypto is an answer that is still not fully equipped to handle every day requirements such as recurring payments.
The well-known bitcoin advocate, Andreas Antonopoulos recently spoke on the limitation of crypto currencies such as bitcoin when it comes to everyday payments. He highlighted that’s for many people, crypto is an answer to that is still not fully equipped to handle every day requirements such as recurring payments, subscriptions and just your morning cup of coffee on the way to work:
“It has to do with the fact that it’s not easy to do membership and subscription services with crypto and the fundamental issue or rather a design issue is that all crypto systems are push systems.”
The well-known industry figure went on to talk about push and pull systems when he comes to the financial world. He says that the latter is typically the philosophy behind credit and debit cards are more suited for recurring payments such as the aforementioned subscriptions etc. He further said:
“In a push mechanism, if you wanted to set up a monthly subscription…in order to do that, the wallets would have to be either a custodial wallet, which means you do not control your keys or two, it would have to be a hot wallet.”
On top of this, Andreas went on to talk about the lighting network. This Second layer solution could become the answer to such limitations that’s between has. He further went on to say:
“The lightning network and layer two networks like that which involves smaller payments involve hot wallets that are online so you can do interactive payments and microtransaction payments and are actually ideal for these kinds of subscription services.”