What the Heck StarBucks and Coinbase? What are you doing to Bitcoin
Starbucks enthusiasts can sometimes be a bit to much.
Cryptocurrency enthusiasts can sometimes be a bit to much.
So what happens when you get these extra two fan bases and put them in a little coffee shop?
Find out next week on Big Bang Crypto Theory!
Haha, jokes aside this is a major step in adoption.
Starbucks allowing people to pay for overpriced coffee with Cryptocurrency is huge for the crypto world!
Even if the average user doesn't understand Cryptocurrency, cryptocurrency logos are going to be on one of the biggest national chains in the world.
Is it time to buy and head to the moon?
I don't know, but I like to be the first guy in when it comes to big tech.
I mean it sounds cryptocurrencies are becoming a little more mainstream!
The question is now.... Can they handle it?
Visa/Mastercard has proven time and time again they can handle transactions without major setbacks.
Swipe your card and make a transaction in seconds!
Can Bitcoin do that?
The answer is no!!!!!
Bitcoin can only handle 4-7 transactions per second!
That is unacceptable when you are dealing with a worldwide network.
Bitcoin was amazing maybe 4 years ago when nobody was using it.
Now its become the hottest thing in the market and it can't keep up with demand!
The average Bitcoin transaction can range anywhere from $10-$20 dollars and take 1-2 hours to process depending on if the network is congested or not.
If you wanted to buy a $6 dollar cup of Star Bucks coffee using Bitcoin, then you're going to have to pay $10 or $20 extra to cover the transaction fee and also wait an hour for the transaction to clear!
So a $6 overpriced cup of coffee is going to become a $16 to $26 cup of coffee!
Is Bitcoin really the future of currency?
Right now Bitcoin is more a place of value like Gold!
You buy gold because you believe the price of gold is going to go up.
So this gives gold value, but nobody uses gold to buy groceries or pay their bills.
So gold is not considered a currency but a place of value.
This is what Bitcoin has become!.
Digital Gold.
Not a digital currency.
But! It's not Bitcoin's fault and there is still hope for Bitcoin
HAVE YOU HEARD ABOUT LIGHTING???
Well, the Lighting Network.
Whats Lighting Network you ask?
Lighting Network is supposedly going to make Bitcoin FAST and FREE!
All our Bitcoin prayers are going to be answered!
Hail Lighting!
Problem with that is...
Have you heard about his cousin Segwit?
Segwit was an update to Bitcoin that allowed Bitcoin to become a little faster and cheaper.
So when we talk about Lighting network...
Do you know that in order for Lighting to work we first need to have Segwit?
We had Segwit technology for months now, but not everyone is using Segwit.
How can we expect Lighting to strike when we don't have his cousin Segwit yet?
There are many people/businesses that are holding Bitcoin back.
Coinbase has yet to adopt the Segwit upgrade and this is hurting Bitcoin!
Coinbase is one of the largest exchanges out there and by not enabling cousin Segwit they are stabbing Bitcoin in the neck.
LocalBitcoin.com has integrated Segwit and we have seen Bitcoin transactions become a little faster and cheaper as a result.
LocalBitcoins.com is nowhere as big as Coinbase.
So imagine if Coinbase actually had Segwit involved.
I can't speak for Coinbase and I don't know their reasons for not using Segwit.
But that doesn't change the matter of how can we get excited about Lighting striking when we don't have Segwit in full use?
Smart guys like the Starbucks CEO knows that there are better cryptos than Bitcoin.
There are faster and better cryptos out there, so why adopt old fart Bitcoin?
This extremely sucks because I believe in Bitcoin, but the community needs to lit a fire under Coinbase's ass and ask them...
Where is the Segwit?
The fate of Bitcoin depends on it.
Sources
Starbucks might accept Crypto
https://www.coindesk.com/starbucks-chairman-hot-blockchain-cold-bitcoin/
Local Bitcoins and Segwit
https://www.bitsonline.com/localbitcoins-segwit-protocol/