Australian Bank Official: Bitcoin is a Risky Investment

Tony Richards, the Reserve Bank of Australia’s (RBA) head of payments policy, has claimed Bitcoin a fascinating development but it is risky as it is not money
26 June 2018   1652

Though the RBA has been analyzing cryptocurrencies during 5 years, Richards hopes cryptocurrencies do not raise major concerns and are not significant threats to the bank since there is a rather small number of active people in the cryptocurrency community. While the cryptocurrency industry has a general market capitalization of $250 billion, Richards declared “to put this in context, the global equity market is valued at around $80 trillion and the global money supply is something around $15 trillion for currency and $90 trillion for broad money.”

Bitcoin and other cryptocurrencies are yet to establish themselves as reliable stores of value. This is most obvious in a comparison of the volatility of Bitcoin as opposed to national currencies like the Australia dollar. Using cryptocurrencies in Australia is just so trivial it doesn’t have an affect and I think we can assume that will be the case for a long time.
Tony Richards
Head of Payments Policy, RBA

Richards is fairly confident that the volatile nature of cryptocurrencies will prevent its mainstream adoption as a medium exchange, especially since there are more stable, trusted, and regulated fiat alternatives. He even underlined, while countries that were inclinated to financial disruption may apply cryptocurrencies, these cryptocurrencies are not being used in a similar manner to the US dollar.

What we have seen, is that countries with less developed financial infrastructure are more prone to disruption. But with cryptocurrencies, unless people want to transact and hold these cryptocurrencies, then they still have to get in and out of their domestic currency.
Tony Richards
Head of Payments Policy, RBA

He adverted that many states that do not trust their domestic currency use the US dollar instead of cryptocurrencies. He alerted others that Bitcoin and other cryptocurrencies are extremely risky investments and are not available as a mean of exchange. When Richard managed to find a Sydney cafe open to accepting Bitcoin, he pointed out that not many of them actually exist.

Lightning Labs to Raise $10M

As reported, the raised funds will be allocated to enforce the team with developers and commercial speciaslists
06 February 2020   291

Lightning Labs attracted $ 10 million investment during the A-series financing round, and also introduced a beta version of its payment service for outlets that work with bitcoin.

If bitcoin is going to reach its potential as a viable global currency, it’s going to need to scale beyond the base layer. Similar to how Visa relieves banks from handling all fiat currency traffic, Lightning relieves the base bitcoin chain from handing all transactions, thus bring more speed and fee efficiency to the network.

 

Brian Murray

Managing Director at Craft Ventures

With the help of the raised funds, the company intends to hire more developers and commercial specialists, so that it will be able to convey the applied solutions to users. In 2018, Lightning Labs unveiled a beta version of its LND scaling solution and received $ 2.5 million investment from several investors, including Twitter CEO Jack Dorsey and Litecoin creator Charlie Lee.

Now a beta version of the new Lightning Loop service has been launched, with the help of which outlets can more effectively manage payment channels and maintain liquidity in them. Several customers have already become interested in this tool, including the developer of the Fold shopping application, which processed approximately 1,600 transactions through the Lightning Network during the holidays in 2019.

We’re growing fast and Lightning Labs’ loop service makes it simple to manage our lightning node’s liquidity, letting our team focus on building out great user experiences that bring lightning to the world.

 

Will Reeves

Fold

According to Lightning Labs, this year the company will be developing tools for working with larger payment channels. We are talking about both individual channels, which individually can hold more than $ 1,500, and multidirectional ones, which break down payments into smaller parts.