The "Killer App" for a cryptocurrency would be the ability to use it as a currency.
When someone taps, 99% of the time the payment processor is not waiting for the funds. It’s all trust and calculations of acceptable risk (that’s why the tap limit).
Crypto can adopt that approach as well.
Yes, CCs/debit went through a period (as did cheques) where that trust was wildly abused and it’s likely any trust layer on top of crypto would have to go through the same period of abuse, but solutions [c|w]ould be implemented fairly quickly since it’s all tech.
As to your last point: credit card fraud is still rampant and hardly anyone accepts checks outside of contractual b2b transactions. The issues with those technologies are technical in nature. Sending a crypto transaction doesn't allow someone to fraudulently charge your account like those technologies do. Whether chargebacks should even exist in a secure transaction system by default is debatable. I personally don't think that kangaroo court service is worth the fraud + global ~3% fees. Think about all the chargebacks you've made in your life that weren't related to credit cards just being insecure. I'm certain they are not worth 3% of your total spending.
Half the point of a digital cash is that you never need a wire transfer because you can just exchange the digital cash directly. Effectively the same as handing someone an envelope full of physical cash.
The currency exchange step needed to convert that BTC back into real money is probably more annoying than just dealing with a wire transfer. And that is essentially my point. If you send someone USD, they can use that directly to pay for expenses like food or rent. If you send someone BTC, they need to first convert that into a real currency before they can use it. That is what I am referencing when I say "The 'Killer App' for a cryptocurrency would be the ability to use it as a currency".
In Australia, we have instant transfers between bank accounts.
I imagine the US will get to that point soon in which case there is no benefit to crypto for this use case.
I don't think Venmo will die since there is a need for app to provide nice interface. But Zelle has been lobbying against FedPay since it will destroy them.
You do realize crypto currencies have transaction fees, right?
Yes, I'm willing to pay for goods and services.
That's at least two decimal orders of magnitude away from being a global payment solution. It's a joke.
Vitalik gave goals of 1.33 MB per second in blob space, and a compressed tx size of 25 bytes. This gives around 50,000 transactions per second, which seems like a worthy goal.
Each L2 is its own chain that uses its own sequencer/s. The blocks from this chain are then compressed into a single blob of data with a ZK proof that the transactions are valid. The validators on L1 only need to verify that ZK proof matches the hash of the submitted data, which can be done in a few ms even if the L2 did 1M+ transactions.
I guess credit card fees are <4% so there might not be a big enough discount to offer consumers to make them figure out how to get crypto (without paying more than 4% fees somewhere). Perhaps a chargeback heavy industry such as porn or political groups could benefit from non-chargebackable transactions.
I worked on OpenBazaar, a decentralized marketplace using bitcoin, and no one wants to spend $5 just to buy something. Artificially reducing block sizes killed adoption.
I guess it helps that its value is relatively stable.
But I still can't realistically use it. I can't walk in a store, buy something, then pay with Monero which is obviously disqualifying on it's own. But in addition to that, if I want to give a friend some Monero I would have to walk them through making a new account with some new app which they won't do because it's pointless anyways.
Monero could be used in a store and some stores do take monero! Its quick, with low fees
It has the exact same practical problems every other distributed cryptocurrency has preventing it from being useful as an actual currency. If Monero ever started seeing adoption as an actual currency it would fall apart just like Bitcoin.
The fact people aren't using it. It's just a PoW coin with some special sauce. Same grey goo energy and equipment dynamics.
Do you expect every store to start accepting it instantly?
Your argument does not disqualify Monero as a real currency. It is a real currency, it's used every day for transactions. Just because you don't find use for it in your life does not disqualify it.
I looked up the history of the credit card on Wikipedia to see how fast that caught on. It seems it had a slow start as well. Things only changed when a big bank put all of its weight behind it. I don;t think something like that will ever happen with cryptocoins, since there are no big institutions that would benefit from it becoming widespread.
> I can't realistically use credit cards. I can't walk in a store and pay using my credit card
That was true at some point and I would agree that as long as it remained true "Why should I carry a credit card that I can't use anywhere?" would be a perfectly reasonable thing to say.
> And if I want to send some money to my friend, I have to walk them through of opening a bank account which they won't do because it's pointless anyway and I can just hand them the $50 dollar bill"
This is completely disconnected from reality. People very commonly use bank accounts and checks. I know they must exist but I cant think of a single person in my life who would need my help dealing with a check.
> It is a real currency, it's used every day for transactions. Just because you don't find use for it in your life does not disqualify it.
You could say the same thing about V Bucks but that doesn't make it a real currency.
But using it as an argument against credit cards is dumb.
> People very commonly use bank accounts and checks
Yes, now they do. Used to be that most people held their wealth in gold or literal cash.
> You could say the same thing about V Bucks but that doesn't make it a real currency.
V Bucks (to my knowledge) can only be used to buy Fortnite stuff. Can I even send it to anyone I want? Guessing not. And I'm pretty sure I can't sell it on a market to anyone else either.
I use Monero semi-regularly to pay for things online (usually privacy products, because sadly nobody is interested in selling me groceries in exchange for xmr). You can absolutely buy things with it.
Could you offer examples? Straight-up curious.