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Bitfury Partners With BTCBIT to Launch BTC [BTC] Lightning Network Payments

Bitfury partners with btcbit to launch btc [btc] lightning network payments

Bitfury Partners With BTCBIT to Launch BTC [BTC] Lightning Network Payments

Bitfury partners with btcbit to launch btc [btc] lightning network payments

A team of Bitfury’s Lightning Peach engineers on January 15, 2019, announced its collaboration with BTCBIT, a Poland-based cryptocurrency exchange to launch a Lightning Network payment channel allowing for a safer, faster, and more cost-efficient transfer of digital assets on the exchange.

Stoking Adoption

Per Lightning Peach’s Medium blog, the new payment solution takes advantage of the BTC [BTC] Lightning network which is a second layer protocol aimed at eliminating scalability bottlenecks.  

Initially built on top of the BTC [BTC] network, the Lightning network supports micropayments and allows users to transact using an opened payment channel. Notably, while the opening of the channel is recorded on a distributed ledger, transactions that occur within it are only recorded when the channel is closed by the user. Thus, the channel can be left open for hours, days, or weeks while proceedings take place.

Lightning Peach confirms that this mode of operation makes for instant micropayments in comparison to credit cards and other means of payment.  Moreover, the network still provides a safe platform for these operations to be carried out.

In light of its partnership with BTCBIT, the blockchain technology company said users of the cryptocurrency exchange will now be able to harness the power of Lightning in transferring or making bitcoin BTCUSD [BTC] payments.

“This is an integration that will help more people use bitcoin BTCUSD [BTC] in their everyday lives in a faster and more convenient way,” declared Lightning Peach.

Therefore, a new customer that intends to convert their cryptocurrency to fiat currency on BTCBIT will need to follow a list of processes which have been outlined.

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Some of these include the opening and validating of an account, launching the Lightning mobile application, and making a transfer from the user’s wallet to the address or QR code specified by the exchange and more.

Thereafter, funds will be transferred to the sender’s bank account between 1 to 3 working days in the case of SEPA and 3 to 5 working days if the SWIFT cross border payment is used.

The blog also notes that all Lightning transactions that have been made, are accessible in the history column that has been provided.

A Steady Progress

It’s worth noting that Bitfury has been hard at work trying to make the most of the BTC [BTC] Lightning Network. On July 20, 2017, Bitfury revealed it had successfully tested the Lightning Network by sending bitcoin BTCUSD [BTC] in real-time, acknowledging the capabilities of the protocol.

Also, on November 28, 2018, Bitfury announced its partnership with Paytomat, a blockchain-based payment processing system, to enable the use of the platform to transfer bitcoin BTCUSD [BTC]s over the Lightning network.

With the way forward-thinking firms are integrating Lightning into their operations, it’s only a matter of time before BTC [BTC] scalability menace becomes a thing of the past.

BTCManager on November 16, 2018, informed that the BTC [BTC] Lightning Network had reached over 40000 nodes with a capacity of 123.22 BTC and 11,909 payment channels.

Published at Wed, 16 Jan 2019 18:00:47 +0000

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Deutsche Bank Economist Believes a Bitcoin Crash Endangers Global Markets

The continuing frenzy surrounding bitcoin has a number of analysts and economists worried even as global financial institutions are starting to actively participate in the crypto world.

2017 has been a banner year for bitcoin and other cryptocurrencies. Last week saw bitcoin race from $14,000 to over $18,000 in a few hours before coming back down to earth at just over $15,000. While many financial experts are predicting that bitcoin will soar even higher in 2018, there are a number who are a little more gloomy. The latest member of the Gloom Club is Torsten Slok, an economist with Deutsche Bank, who believes that a Bitcoin crash could endanger global markets.

bitcoin Making the List … of Market Risks

bitcoin has been riding high this year, and the launch of futures trading is driving interest to a fever pitch. The CBOE website actually crashed yesterday as it couldn’t handle the massive influx of traffic. One wonders if CME will beef up their site when they launch their own bitcoin futures exchange next week.

Of course, not everyone is tickled pink by the increasing influence of bitcoin and cryptocurrency. Torsten Slok of Deutsche Bank has issued a warning about the ramifications of a bitcoin crash in 2018. Slok released a list of 30 market risks that could impact global markets, and a bitcoin crash came in at lucky number 13. This places bitcoin behind German wages and inflation but ahead of Brexit developments and the Russian presidential election.

How Bad Would a bitcoin Crash Be?

A total bitcoin crash would be devastating to a lot of people, but it may not have the global impact that Torsten Slok envisions. One such reason not to fret is that of scale. The total market cap for all cryptocurrencies is $436 billion at the time of this article’s writing. While a tremendous amount of money, it does pale in comparison to other economic factors. The housing market in the United States alone was estimated to be almost $30 trillion back in 2016. Another example of scale is that the value of all Japanese stocks hit a high of $5.49 trillion back in September.

Another reason why not to panic is that bitcoin is spread across the world and not concentrated in a single economic block, such as Europe. A lot of people would lose a great deal of money in the event of a bitcoin crash, but it should not throw a wrecking ball at a single country’s economy. However, if a bitcoin crash was part and parcel of a greater financial breakdown across multiple markets, then the overall global market would be impacted.

That being said, a bitcoin crash would hurt a lot of individuals, but I wonder if a lot of national governments would welcome such an occurrence. There’s no denying that many governments are not too keen on cryptocurrency as it is currency that lies outside their control, and governments are not thrilled with a lack of control.

As for Deutsche Bank, they’re calling for greater regulation and security on cryptocurrency in order to make it a viable asset class. The bank believes that the imbalance between supply and demand, as well as the volatility of crypto prices, make investing in digital currencies risky. Deutsche Bank says:

If cryptocurrencies are to replace money, then they have to fulfill money’s three core functions: as medium of exchange, a measure of value and a store of value. To do this, cryptocurrencies must be more trusted. Problems here include high volatility and possible price manipulation as well as data loss or data theft.

In the image below are the 30 global market risks as selected by Torsten Slok of Deutsche Bank.


What is your opinion of Slok listing a bitcoin crash on his list? Do you think the cryptocurrency will crash in 2018? Let us know in the comments below.

Images courtesy of Bloomberg, Flickr, Pixabay, and LinkedIn.

The post Deutsche Bank Economist Believes a Bitcoin Crash Endangers Global Markets appeared first on Bitcoinist.com.

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