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Can Bitcoin Fix Micropayments? | Bitcoin Magazinebitcoinmagazine.com/business/can-bitcoin-fix-micropayments
10 sats \ 3 comments \ @cryptocoin 11 May 2022 bitcoin
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20 sats \ 0 replies \ @notgeld 11 May 2022
Yes.
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0 sats \ 0 replies \ @cryptocoin OP 11 May 2022
This was kind of an awkward read.
The description of Lightning network made it seem that as if to pay anyone you needed an LN channel open directly to that party.
The article mentions that Brave browser users can pay some BAT to skip ads. Sometimes I use Brave browser but I've no idea of what that might be referring.
The gaming use case does not address whatsoever the play-to-earn (P2E) category, such as those from THNDR games which use LN for payouts to the players.
Then the author says the use cases mentioned are "experimental". No, every one of them is available today from a for-profit endeavor.
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0 sats \ 0 replies \ @cryptocoin OP 11 May 2022
Micropayments typically refer to transfers below a specific value threshold. Think of a micropayment as a really small transaction or payment — like the $1.20 you pay for a cup of coffee.
Billy won’t accept transactions below $5 because the payments provider often charges a base fee in addition to a percentage of the full cost for processing payments. For Billy to break even, the value of the transaction must be higher than the processing cost. Paying a fee on your meager purchase would simply be economic suicide. The transaction breaks down, with both sides losing out on benefits. You can’t get your caffeine fix and Billy loses potential income.
Historical experiments with micropayments have followed the same principle: aggregate tiny fees into a considerable amount before releasing them to merchants. In most cases, the user would have a digital wallet where they could deposit a fixed sum and authorize withdrawals for certain payments.
Moreover, users had to hand their personal information to companies, giving companies the freedom to sell their data.
APPLICATIONS OF BITCOIN MICROPAYMENTS
  • CONTENT MONETIZATION
  • ONLINE TIPPING
  • PAY-AS-YOU-GO SUBSCRIPTIONS
  • MARKETING AND ENGAGEMENT
  • GAMING
  • SELF-GENERATED DATA
MICROPAYMENTS CAN SCALE BITCOIN ADOPTION
Micropayments could be Bitcoin’s killer application. Bitcoin-enabled micropayments can be applied to many business models, triggering global adoption and increasing network effects.
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