5 sats \ 2 replies \ @cointastical 15 Feb 2022
This is a great clip.
Technically, I think this was not actually "from US Bank account", this was from the BTC wallet balance in Cash App.
He might have bought the BTC on his Cash App using his US bank account, but that would have been in a prior transaction. This would then have been a second transaction, and it was a simple Lightning transaction (and no fiat bank network transaction involved).
At least that's how my Cash App works. When I try to send bitcoin from Cash App by scanning a LN invoice for an amount that exceeds my Cash App's Bitcoin balance (i.e., my 0 sat balance in this instance), Cash App tells me "Insufficient funds. Buy more bitcoin to complete this payment."
But yes, I can top up my BTC balance on Cash App in a few seconds and then spend those BTC. Simple, yes. Except in that example, because I bought bitcoin, and then spent bitcoin, my FIFO accounting results in that being a tax event.
Oy!!
Strike does this same type of transaction where the funds for the LN transaction comes from my USD balance with Strike. Therefore,using Strike there was no taxable event, to me.
Oh, and the "no cost"? When I buy bitcoin on Cash App that transaction incurs a fee, about 3% last I tried, for a small amount. Strike does not have much of a fee at all -- less than 1%, certainly.
So while Cash App adding Lightning will be a game changer for many, I'm quite pleased using Strike instead, at least for spending in bitcoin from my bank account.
reply
15 sats \ 0 replies \ @nolim1t OP 15 Feb 2022
the alternative is paying expensive ATM fees to get cash to pay for things. Not like the banks need the money.
You can buy and then "dispose" of it immediately so theres no capital gains at all.
reply
6 sats \ 0 replies \ @cointastical 15 Feb 2022
El Salvador making bitcoin legal tender, and the Strike / Bitcoin Beach / LN-enabled Chivo wallet was the largest bitcoin development in 2021, in my opinion.
I think Cash App adding Lightning support is shaping up to be the largest bitcoin development in 2022.
Not just because this instantly enabled 70 million prospective users for each and every Lightning network wallet and service, but because now all the other exchanges that have been resisting Lightning with their collective might are going to have to add LN or lose marketshare to Cash App and Strike.
The list of Exchanges with support for Lightning Network, while expanding, is still just a fraction of all the exchanges out there.
Exchanges with support for Lightning Network
https://github.com/cointastical/Exchanges-With-LN
reply
3 sats \ 0 replies \ @UlfMoby 15 Feb 2022
This is it! Bitcoin is the best monitory network. Swift/visa/Western union will need to rethink their business.
reply
0 sats \ 0 replies \ @cryptocoin 16 Feb 2022
(Kind of) related, here are two reviews of Cash App's UI for Lightning:
Thoughts on CashApp's Lightning user flows - Stephen DeLorme
#11547
https://d.elor.me/2022/02/thoughts-on-cashapps-lightning-user-flows
While I am happy on one side that Cash App enabled lightning payments, on the other side they created a crappy lightning UI/UX... let me explain why??
#10778
https://twitter.com/arunned/status/1491084091462418434
reply