Max Hillebrand is an economist who started reading Keynes when he was 9 and got into Bitcoin at the age of 16. He says “Bitcoin is for everyone”, even his grandmother runs a Lightning node. First we discuss Bitcoin and then Max is debunking misconceptions about the Lightning Network.
- Cantillon effect
- Gold, silver and bitcoin
- how to reduce bitcoins volatility
- Satoshi never mentioned Blockchain only Timechain
- Censorship resistant time
- Lightning Network
- Malicious actors
- Punishment transactions
- Watchtower services
- Static channel backups
- Autopilot feature
- Atomic multipath payments
- Digital scarcity
Lightning Network FUD
Max addresses the following criticism about the Lightning Network
- The Lightning Network is built for small payments, therefore I can never send bigger payments and I have to change to the root layer and do it with a Bitcoin transaction.
- Lightning network is too complex for the non technical people to use – for instance you have to open a channel manually and fill the channel before you can use it, then you might have to open a second one for a bigger payment.
- If one of the nodes that route the payments turns off its service, I loose my funds.
- Lightning funds cannot be backupped, there is no seed to recover funds.
- Lightning Network is a centralized solution – there will be nodes that are big and route payments, they can control and censor payments like a bank, which is completely against the fundamentals of Bitcoin.
- The Bitcoin Network will not be feasible anymore. If all payments are in channels, there will be opening and closing transactions on the base layer only. Miners will stop mining because the transaction fees they earn will be not enough to pay the costs of mining. Bitcoin will fall apart.
- If I open a channel today and close it in 5 years, the fees might be higher than today and then I might not have enough funds to pay for closing the channel.
- Funds in my channel will shrink, if fees become higher.
- How to get inbound liquidity.
- Will node providers be regulated?
- You have to be online all the time to send and receive payments.
- I need to have Bitcoin before I can use Lightning, how should the people in poorer countries be able to participate?
- The Lightning Network will be too slow and complex to grow and it does not scale.
- Lightning Network is an Altcoin.
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Support the podcast
ShownotesRecording Date: June 12, 2019
- Video: Bitcoin Security: Bubble Boy and the Sewer Rat
- The Internet of Money, Vol 1 by Andreas M. Antonopoulos
- The Internet of Money, Vol 2 by Andreas M. Antonopoulos
- Lightning Network Whitepaper
- Mastering Bitcoin by Andreas M. Antonopoulos
- Grokking Bitcoin by Kalle Rosenbaum
- Optech Newsletter
- My interview with Rene Pickhardt