21 sats \ 12 replies \ @javier 3 Apr \ parent \ on: Coinbase Selects Lightspark for Lightning bitcoin
Well, if @DarthCoin and others are right and they are doing fractional reserve on Bitcoin, I don't think that's a good thing, it only means more ways to scam.
how could a lightning integration possibly mean “more ways to scam”?
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Lightning is just a tool, can be used for good and for bad. Like Bitcoin. If a scam is run on Bitcoin, that doesn't make the scam less scammy.
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Come on kr you are intelligent. If they increase their usebase because of adding lightning, obviously the scam becomes bigger.
And it's not just suspected fractional reserve, Coinbase is a bad actor in general, DarthCoin already put you a list of bad things this company already did: #78930
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Coinbase is a bad actor yes, but if a bad actor no longer prevents access to Lightning, how can this be net bad?
I think you think they have some elaborate scheme planned but to me it looks more like they accepted that Lightning is here to stay. I think you think they are smarter than they really are. If Coinbase is doing fractional reserves, Lightning will make bank runs easier.
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You don't get it. Everytime there is high demand of bitcoin, like on FOMOs or during big dips, Coinbase stops operating. Recently it happened, but happens everytime those conditions met. The main reason a bank does that is because they don't have enough liquidity and they fear a bankrupcy, which means they are using fractional reserve. Why would you froze withdraws otherwise?
It doesn't matter if they use lightning or not, the amount of liquidity in lightning is always going to be minuscule in comparison with onchain, because ln is a payment system, not a thing to store big amounts of money. So lightning would not avoid bank runs.