Bitcoin Transports Value At The Speed Of Light- Strike CEO

Jack Mallers, the CEO of Strike, talks about the Bitcoin lightning network and explains why he thinks it disrupts as a payments system.

This is an asset with a fixed supply, known issuance, known monetary policy. A wide enough distribution that you can be certain it won’t ever change. I don’t encourage people to use Bitcoin for purchases. How do you actually transport value at the speed of light, I’m saying?

Since this is a payments network, money could be transferred instantly and cost-free anywhere in the world. And anyone can build on top of it because it is more innovative and inclusive.

They are unaware that Bitcoin is involved when sending money or ordering Chipotle from a retailer. Thus, the payment network that enables the settlement of value is what is disrupting this situation. Regardless of whether you want to have a stablecoin on one end, a euro, or Starbucks points.

Jack Mallers, CEO of Strike, appeared on Yahoo Finance Live to talk about the launch of the company’s Shopify integration, bitcoin, and plans to upend the established financial system.

Bitcoin is Superior in Existing Payment Platforms

BRIAN CHEUNG : Strike a digital payment platform, is integrating with Shopify, an e-commerce platform, to enable US businesses to accept Bitcoin payments from clients worldwide as US dollars. Let’s bring in Strike CEO Jack Mallers and Yahoo Finance’s David Hollerith to have a deeper discussion about the growth of crypto payments and its future.

It’s wonderful to have you in the lineup. I wanted to ask you, Jack, if you could just kind of give us a little more information on this collaboration you have with Shopify, the concept of being able to go on these many marketplaces and then use Bitcoin to transact. Why did you choose to pursue this collaboration?

JACK MALLERS: Actually, I would slightly modify that. The concept is that it’s not always about spending bitcoin. It’s that using the Bitcoin payment network outperforms networks for processing credit cards, banks, and remittances like Western Union.

A payment network is essentially a network that enables the transfer of value from point A to point B. The Bitcoin network simply performs that function much better. Additionally, it can be interfaced with dollars in the same way that Visa can do it with dollars over debt-based payments for credit card payments.

So, in my opinion, it is simply better, costs less, quicker, has wider scope. It includes more people. It is more original. And it’s just the new manner in which we ought to conduct payments.

DAVID HOLLERITH: Jack. I appreciate you joining the show.

Yes, I was merely interested. You know, usually when I discuss using cryptocurrencies to innovate the payments industry, people will bring up something like, say, a stablecoin pegged to the US dollar. Therefore, I was wondering why you might have considered using Bitcoin as a payments network.

JACK MALLERS: I really want to categorize Bitcoin as an asset because it has a fixed supply, a known issuance, a known monetary policy, and a sufficiently wide distribution network that ensures its constant value. I don’t encourage people to use Bitcoin for purchases. How do you actually transport value at the speed of light, as I am suggesting? This is a payments network, after all, that allows for the free, instantaneous transfer of value anywhere in the world. It’s more innovative and inclusive.

Just to give you an example, if I wanted to convert dollars to euros, I could withdraw dollars from your Chase account, convert them to Bitcoin, send them instantly around the world, and then change them back to euros. The consumer sending the money or the consumer purchasing Chipotle are unaware that Bitcoin is involved.

Thus, the payment network that enables the settlement of value is what is disrupting this situation. Regardless of whether you want to have a stablecoin on one end, a euro, or Starbucks points. It’s not always what the customer, the business, the person sending the payment, or the B2B wants to hold and interact with. Under the hood, it’s the rails.

bitcoin
Bitcoin

AKIKO FUJITA : It sounds like you’re still saying that you think of Bitcoin as a store of value, Jack, but this allows for a faster payment system, so that’s an interesting proposition. Although the partnership we’re discussing today is with Shopify, how do you see it developing further? What is the system you’re using?

JACK MALLERS: Consider it this way, if you will, I mean. When a global communications network became available, it became known as the internet. Nowhere in an email that I open do I have to note that it is a cross-border email. This is a flirtatious email to a girl. This email will result in the termination of my employee.

No, all it is is a message, which I can send by clicking. It will arrive in less than a second and without cost, regardless of whether it is sent to the person to my left or someone in Japan. Because the value is in the message. All of it is part of one global network.

The same holds true for Bitcoin payments. That’s why I find it fascinating. It will settle in less than a second and without cost whether I’m paying for coffee, sending money, or tipping someone on Twitter.

Now, because Bitcoin is an asset that is intended to be held, appreciate, and store wealth across space and time. I don’t recommend using it for transactions. The interface with dollars is what I’m in favour of. We can transfer money over it. We can move euros over it.

It is taking the place of the current, split-off independent payment networks, including Western Union, card networks, and transfer. To move value from point A to point B, we can all agree on a single global standard that is open to all. Simply put, it is superior.

DAVID HOLLERITH :Yes, Jack, I heard your keynote address for Bitcoin 2022. And you sort of discussed how— you know, you gave a pretty clear example of how a sender could use your app to send US dollars if they chose not to use their Bitcoin. It would be converted to Bitcoin on the back end of your app, sent, and then converted back into US dollars for the merchant.

Your discussion about how the credit card industry hasn’t really seen innovation for the merchant since 1949. I believe, was the talk’s high point. Now, could you elaborate on that a little bit? What is the merchant’s gain in this situation?

JACK MALLERS: Indeed, what I mean to say is that payments as we know them today are debt promises. The idea originated with Mike Brock. That implies that the US dollar, which is represented by paper currency, cannot settle and move faster than light. When I enter a Chipotle and swipe my card, money doesn’t immediately jump out of my pocket.

In reality, the banks are making promises to one another, and Jack is up to the task. Jack is a good choice. Give him the burrito to eat. We will decide later.

Who is responsible for paying off the debt? The retailer is there. They impose taxes on retailers to pay for this endless supply of credit.

What have banks been doing over the past 60 years if not innovating? They have been constructing extremely complex revolving doors of credit.

The innovation, the big bang, the “a-ha” moment is that you can now send a digital bearer instrument, also known as Bitcoin, along with a message to a merchant indicating that Jack wants to make a payment for something. Additionally, it is capable of hopping out of my pocket and into the cashier at Chipotle.

And that’s the innovation: the merchant no longer needs to rely on banks and establish credit with debt organisations to ask for Jack’s money in 30 days. Because he claimed to be trustworthy when he purchased this burrito. You now possess a physical bearer device that is intrinsically digital and capable of settling and moving at the speed of light.

Therefore, the merchant also receives the money when they receive that message. And that implies that you don’t need to call the banks, beg , and bargain with them about things like interchange.

The fact that the message is that anyone can build on top of money is the reason this is such a big deal. They’ve built such sophistication—the regulatory compliance—to give unbacked consumer credit loans, which is why I can’t go to Chipotle and pay with my Twitter or my CashApp or whatever. I need a card issued by a bank. And now that we have a digital bearer instrument that could settle instantly. And that is no longer necessary to facilitate commerce.

DAVID HOLLERITH : Right

JACK MALLERS: I sincerely hope that this makes sense. Just 65 years have passed since that fascinating revolution began.

BRIAN CHEUNG : Indeed, Jack. It illustrates how out-of-date the American payment system is, in a way. El Salvador is where I want to move because they’ve started accepting Bitcoin as legal tender. El Salvador is served by the mobile payments app Strike. Tell us what you’ve observed on that front and how it contrasts with the American system in place here.

JACK MALLERS: Well, consider it. The internet’s enormous importance for things like freedom of speech is the same thing. Leaving aside my potential corporate incentive as a businessperson

Can you imagine trying to follow the war today without the internet if I had to rely on “The New York Times” to publish a credible opinion? No, I can access the internet. It is open to all. Everyone involved in it. Due to the fact that anyone can use it and build upon it, it is inherently innovative.

And as a financial network, Bitcoin is exactly that. It operates on the same idea. Therefore, when emerging markets invest in an asset that can preserve and store their wealth over time, it frees them from having to place their trust in their government and their own national currency—or lack thereof.

And finally, a payment system that ushers them into the digital era and is ultimately inclusive, requiring no creditworthiness to participate. All you require is an internet connection and a mobile application that you enjoy using.

I see El Salvador as an emerging market because of this. I observe a developing nation that was perhaps hundreds of years behind becoming one hundred years ahead. They appear to have taken steroids, leaped into the future.

DAVID HOLLERITH: Jack, could you please respond quickly? I mean, how popular is the app? Do you have any numbers you could give us?

JACK MALLERS: I can’t share any numbers with you. A few pretty significant deals are currently underway. though widely.

Additionally, I’d like to point out that it’s opt-in. Thus, the idea that it is like receiving a free gift. Whoa, what’s in the box feels like an asset that has never behaved more in my best interests, and a payments network that has never been simpler to innovate and expand to include everyone.

It’s fascinating that there are people who want to subscribe to that and gain from it all over the world. And if anyone objects to that, I would seriously doubt their moral character because they are not required to use it.

DAVID HOLLERITH : Jack, once you’re prepared to share some of those numbers with us, we’ll need to have you back on the show.  

DAVID HOLLERITH. I sincerely appreciate your time. The conversation is joined by our very own David Hollerith, CEO of Strike, and Jack Mallers.

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What is GameFI and here is Some of Its Models

Each of us grew up playing a variety of games. Whether we’re playing a straightforward arcade game or one of the more intricate PS5 titles, we all enjoy the excitement of defeating a foe or taking something for ourselves. Our DNA almost seems ingrained with this emotion. But what if there was a way to make money while playing video games? Wouldn’t it be great if you could turn your love of video games into a lucrative career? In 2022, we will play games in a different way, and GameFi has made it possible for us to do so while also earning real cryptocurrency in hundreds of various ways.

At the moment, one of the most popular crypto trends is GameFi. Referred to as the future of gaming and is a nexus for guilds, games, and metaverses all in one. Because this sector is very young and involves money in addition to gameplay. It has the potential to change how video games perceived by future generations.

Therefore, if you’re a novice seeking to get into this business, now can be the best moment to go in because the entrance barriers are low and the market slump provides the ideal opportunity to start and flourish.

If this makes your blood race, stay with us as we explain what GameFi is and how you may join this gaming revolution.

What Exactly is GameFi

The gaming business is utilising Web3’s potential and combining gaming with finance under the term GameFi. GameFi is a platform that allows players and creators to gain value for themselves through games in the form of cryptocurrencies and nonfungible tokens (NFTs). Metaverses are virtual environments where these games frequently hosted.

The technology allows gamers and developers to interact in a decentralised GameFi ecosystem. Creators are free to create engaging games and engagement strategies, and players comply. Strong economic models known as “tokenomics” used to divide the value created in the form of “in-game tokens” and NFTs among stakeholders.

Play-to-earn is a phrase and a model frequently utilised by GameFi platforms (P2E). The first company to successfully implement P2E at scale was Axie Infinity.

The Model Operates in the Manner Described Below

The platform purchased by a player who then plays the game and wins gaming tokens. You can exchange these game tokens for bitcoin (BTC), ethereum (ETH), fiat money, or stablecoins. As players improve at the games, NFTs used to play them also updated. These NFTs now updated and sold for more money on NFT marketplaces.

Through the P2E paradigm, GameFi projects expand the number of players they have, which increases the token supply. By introducing “in-game” marketplaces, they also develop the demand side (burning mechanisms) for the tokens. In-game items including weapons, cars, and props are available for purchase on these marketplaces.

The platform produces network effects as the supply and demand for the gaming token scale sustainably. This initiates a self-reinforcing positive cycle and is indicative of a working GameFi ecosystem.

Although P2E was only the first Web3 economic model to become popular inside GameFi,. This model may have overly preoccupied with growing a player base. Which seen as the supply side of GameFi.

Other economic models within GameFi have emerged as a result of the demand side, which balances the economy, not scaling quickly enough.

For Example

“play-and-earn” systems have begun to prioritise the gaming experience over financial gain. They contend that the gaming experience is what would maintain a high level of player retention. The money gained from playing should seen by the players as a good bonus.

The scalability and sustainability of these solutions still evaluated and improved. As GameFi platforms have gained some traction, additional participants are beginning to act as auxiliary systems in this ecosystem. These players frequently concentrate on the particular duties required to maintain the GameFi ecosystem’s viability.

How Does GameFi Function

GameFi renowned for providing its users with generous rewards. Cryptocurrencies, Non-Fungible Tokens, or in-game items like avatars, virtual lands in The Sandbox, weapons, outfits, etc., used as payment for these incentives. Each GameFi project differs from the others in that each developer uses a unique game environment and financial framework. Typically, gaming assets are tradable NFTs that may found on reputable blockchain-based NFT marketplaces. These assets may occasionally converted into an NFT for trading reasons. The in-game items typically offer the players a variety of benefits, including lucrative rewards.

GameFI

However, the virtual characters and weaponry we encounter in some games are merely decorative items and play no part in boosting profits. For fans of GameFi, the market currently provides access to several varieties. Platforms that enable users to own and trade virtual land locations included on the list, including Decentraland and The Sandbox. Here, gamers can buy clusters of virtual properties, design them according to their preferences, and then rent them out to other people for money. Additionally, some platforms enable users to increase their revenue without playing games.

Players can engage in in-game asset lending for rewards or engage in mining for liquidity. Decentralized Autonomous Organizations, or DAOs, are platforms like Decentraland that give users an equal opportunity to participate in the decision-making process.

Play-to-Earn GameFi Models at the Moment

Within the GameFi sector, this model often used. Players that participate in in-game activities including completing quests, challenges, and tournaments, among others, can earn real money through play-to-earn (P2E). The in-game economy monetized using cryptocurrency and Non-Fungible Tokens (NFTs) in this paradigm. As player incentives, NFTs in this ecosystem typically take the form of avatars, clothes, outfits, weaponry, and cryptocurrency.

Play-to-Earn

By trading, selling, or purchasing NFTs on the market for cryptocurrencies or real-world money, users can acquire certain in-game things as well as use them outside of the game by using NFTs as full ownership of the in-game assets.

P2E offers players the chance to make money, acquire property, and create value in the real world, but it has drawbacks as well. P2E elevates the earning experience over the gaming experience and concentrates on it, which impedes gameplay. This can result in overvalued tokenomics, which is made worse by the high entry fees in several well-known video games.

Play-to-Own

Play-to-Own is an expansion of the P2E concept that enables players to create NFTs for the real world out of their in-game assets.

This makes it possible to prove who owns the things they have in-game. The in-game items can be bought and sold on the market or traded privately.

Players are able to keep their P2E mechanics and contribute to the development of new applications for their assets thanks to this paradigm. Additionally, players are given the option to decide how to use their in-game profits and incentives.

Play-to-Own

The Play-to-Own concept allows creators to concentrate more on the gameplay. Additionally, this lowers entry barriers and gives users ownership of resources and virtual money, which is managed by a player-driven economy.

Since the Play-to-Own model offers actual, tangible ownership in addition to fun gameplay, it keeps players more engaged than the P2E model. The P2E model draws in players who are driven by return on investment, and it can develop into a competition to outbid one another in terms of profits. Since the Play-to-Own model predominately influences the in-game economy, players that are interested in it will stay around longer and be more involved in the community.

Play-And-Earn

The Play-and-Earn concept prioritises gameplay and moving forward in the game above emphasising ways that users can make money.

While the P2E model loses sight of playability and fun, remaining relevant only for as long as the profits hold, players gain awards, tokens, and NFTs by progressing through the game’s plot, quests, and objectives instead of merely playing to win. The Play-and-Earn concept aims to make the game exciting, interesting, and pleasurable while also making it lucrative for players by allowing them to earn money and take ownership of it. In contrast to the current situation, where the majority of efforts are focused on how players can earn, this model combines what gamers have long desired within the GameFi space: a strong AAA title with a captivating plot and gameplay.

Play-And-Earn

This was created so that users could enjoy playing the game and contributing to the community. The Play-and-Earn approach addresses the user retention problem that existed in the P2E concept. This paradigm does not necessarily provide ownership of in-game resources, even though players can earn rewards and in-game tokens. This may have an impact on those trying to break into the sector, seeking a passive income, or experiencing inconsistent value propositions. Additionally, this results in the loss of diminished supplementary benefits such ownership of in-game products as NFTs, active market trading, and peer-to-peer commerce.

The gaming industry is growing. Despite the bullish cryptocurrency market, the GameFi sector is still thriving. We may anticipate fresh advancements and new technologies to be launched in the future, allowing for new models, given that the technology is still in its infancy.

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