I don’t use strike but I’m guessing it allows to use cash or sats to send and convert to local fiat on the other end?
That would mean they have partnerships with banks in those countries which accept sats? How does that local bank account for volatility of holding sats? Does that mean they sell them the moment it touches their node? If so, how and where?
You pretty much nailed it. They buy and sell on both ends and use Bitcoin/LN as the rails.
Who is buying their sats?
Just seems impractical with the current fees. How do they swap to onchain? Can you buy USDC or USDT with lightning ?
Let’s say I want $100.
I create an invoice.
You send me $100 in bitcoin.
It automatically converts and keeps it on the books as $100 on my end.
The use LN as payment channel.
They use VISA for ACH from what I understand.
This. For Visa to work, Strike needs to be on their network. Either as direct partner or through an intermediary broker.
My guess would be Strike has partnerships with local exchanges that are properly AML compliant, which allows having partnerships with banks for the clearing accounts Strike needs.
Negative.
The merely provide a wallet that exchanges between USDT & BTC accounts.
Like any shitcoin wallet already does?
You’re saying it’s a bad thing?
Similar, but I’d say with a distinction.
Strike’s model focuses on uses LN as the payment rail, so the end users and choose between local currencies/USDT & Bitcoin.
Shitcoin wallets are bloated with everything else that is not bitcoin.
All part of Slowly then suddenly.
Read the announcement from 2 years ago.
There's also a WBD episode from back then where the technicalities are explained.
No cashing out or buying btc in New Zealand yet 😔
Part of my paycheck distribution (ACH) goes to Strike with zero fees. I set Strike to DCA every hour. They make a little less then 1%. At the end of the month I withdraw my Sats to cold storage. Usually in the next block. I don't loose a single Sat. Strike is Bitcoin only and cheaper then Cash App and Swan. That's why I use it, Yo.
It's probably bullshit all around. In Brazil it's clear they don't have any partnership with any bank. Their app is just a custodial Bitcoin/USDT wallet. There is zero adoption of USDT here, I don't see the point.
