Cuy Sheffield, Head of Crypto at charge card mammoth Visa, imagines Bitcoin Sats as the web local unit of record for buys short of what one penny. He considers this to be the primary use situation where the main resource can supplant fiat.
SATS, AN INTERNET NATIVE MICROPAYMENT STANDARD
Cuy Sheffield has been thinking about Bitcoin and crypto a lot. Spurred on by a recent Tweet by Brian Armstrong, CEO of Coinbase, Mr. Sheffield went on a tweet storm where he made a positive argument about Bitcoin’s capacity for micro payments using the Lightning Network.
As Sheffield points out, there is nothing you can buy online for less than a penny, using dollars. Sheffield makes an interesting case for users wishing to spend Bitcoin, even with its volatility and exponential growth. That use case is micropayments that can’t be made with dollars
If streaming money becomes the way content creators are paid in the next 5-10 years, we may see internet users who don’t know or care about Bitcoin still using Satoshis to pay for online content. Things like streaming a video, reading online articles or listening to music could cost a small number of satoshis.
17/ However, if you have 1k+ devs able to easily build on open tech that enables them to create apps with micropayments for items and services that cost between 1/100 of a cent and one cent, it increases the design space leading to significant experimentation and creativity.
18/ If new use cases like paying sats to remove ads, tip influencers, join private messaging groups, or buy digital goods emerge, sat denominated payments over Lightning or a similar open source layer 2 network have a significant leg up to be used in them over USD.202:07 PM – Feb 16, 2020Twitter Ads info and privacySee Cuy Sheffield’s other Tweets
Sheffield believes that since payment amounts could be as little as 100th of a cent, users won’t FOMO buy or spend because the amounts are so small. Even with high volatility, they could still make micropayments and not see much of a difference in purchasing power.
MICRO WALLETS DENOMINATED IN DOLLARS, USING BITCOIN BEHIND THE SCENES
These wallets could still be denominated in dollars with Sats being a sub penny fractional unit of account for micro-purchases. The open source nature of Bitcoin development provides a revolutionary opportunity for new apps in this particular space.14 BTC & 30,000 Free Spins for every player, only in mBitcasino’s Crypto Love Affair! Play Now!
These apps could outcompete the US Dollar because the American Government would need to create a whole new sub cent unit of account, which would have to be globally adopted by developers.
He believes that since the amounts in question are so minimal, the mental transaction costs of making such minimal purchases would not cause a drastic change in online behavior, like it might if denominated in cents.
While the Lightning Network is in its early stage of development, it is still the most viable second layer Bitcoin scaling solution currently available in the crypto market. There is still quite a learning curve and obvious limitations to the technology, but a consumer facing application which makes it easy to use for non-tech types could be the catalyst to drive micropayments mainstream.