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you can spend your cash balance over Lightning today on Strike. I prefer this over spend and replace because it avoids the capital gain taxable event and is the same thing as spend and replace. what we do behind the scenes is take your fiat, convert it to bitcoin, and pay the lightning invoice. what’s mind blowing is that when Square turns this on, a consumer and a merchant can even do USD <> USD settlement with bitcoin as the network, not Visa. cheaper, faster , cash final, etc. View quoted note →

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How “is [it] the same thing as spend and replace.”? Do you mean theoretically because you could have bought and spent BTC? That’s an awfully metaphysical way to support the network. While I do see the benefits to strike since it habituates users to alternative spending desire lines, i don’t see how it supports the hodl ethos beyond using BTC as rails to disintermediate visa. Which is not nothing but it’s not sovereign individual behavior per se.
↩ replying to Legion XXI
Yeah, it’s a kind of a private (strike) and public BTC/LN network subsidy for hard money end users. The government could regulate away this arbitrage by redefining taxable events, I guess, also. Or maybe strike never actually touches the dollar settlement layer (IRS and state purviews) and so the LN networked dollars are only theoretically taxable. Need a graphic for how strike does this to be able to ask better questions.
I've got a BTC balance on Strike.. I don't even care if I have a taxable event if I buy something using BTC... Hey Jack, you hear anything new about Legislation in regards to this type of taxable event? Maybe Scott Bessent has something new to say..
>what’s mind blowing is that when Square turns this on, a consumer and a merchant can even do USD <> USD settlement with bitcoin as the network In other words you reinvent PayPal... The whole point of Bitcoin is to fuck fiat, not using it. You are just perpetuating an evil system to exist. image