* Messaging: [Nostr](https://github.com/nostr-protocol/nostr) & cloud API

* Mobile: React-native & expo

* React Libraries:

* Bitcoin: [BitcoinJs Lib](https://github.com/bitcoinjs/bitcoinjs-lib)

* Lightning: [LN-Zap](https://github.com/LN-Zap), [LND](https://github.com/lightningnetwork/lnd), [LNDHub](https://github.com/BlueWallet/LndHub) (blue wallet), [Greenlight (Blockstream)](https://github.com/Blockstream/greenlight), [blixt](https://github.com/hsjoberg/blixt-wallet)

From a DevX point of view, the best technology to use has been Nostr. It is truly plug-and-play and extremely powerful. Its ease of use has enabled rapid development around the communications side of the app. Prior to Nostr, I explored doing something similar on google cloud, but Nostr worked out of the box and achieved all that I needed.

I had already used BitcoinJs in a previous react web-app project so I naturally chose it for this project. However, it was far more challenging with react-native compared to web. My first version of the app was created using expo which is [not supported by BitcoinJS](https://github.com/bitcoinjs/bitcoinjs-lib/issues/1169). So I re-wrote the app in plain react-native to get it working. A further challenge has been navigating library versions that work properly together. The biggest challenges have been:

- react-native: currently v0.71.8

- react-native-reanimated: currently v3.0.0

- react-native-crypto: currently v2.1.0

- tiny-secp256k1: currently v1.1.6

I attempted to use react-native turbo modules which required upgrading react-native-reanimated, react-native and various other libs. However, I could not get it to work properly with react-native-crypto and tiny-secp256k1. I attempted to get it working by applying a patch package to various libs within tiny-secp256k1 — but in the end I was patching so much that it felt easier to write a whole new package. I have not ended up upgrading.

The most difficult technology to use, by far, has been lightning. From a devX point of view, this has been the most painful. This is partly the reason I explored so many options. If you are going to work with lightning, I can recommend you do not waste time with the following:

* LN-Zap: the library was out-dated compared to LND and I could not get it to work properly on testnet.

* blixt: This was very complicated and, while I could get it to run, it was buggy and difficult to debug.

Greenlight has the potential to be extremely powerful, but it is still very early. I have joined their testing platform which works well in python, but their JS implementation does not yet work. If you attempt Greenlight, I recommend using their rust/python framework.

I ended up going with LND (lightning labs) combined with LNDHub to communicate with the wallet. LND was challenging to set up and to understand what was really going on under the hood. I also think it is overly bloated for what I am trying to do.

LNDHub was relatively easy to set up and makes communication to the LND node much simpler. I highly recommend coupling an LND node with LNDHub.

### Cloud

Beme allows you to create a lightning wallet in the cloud. The current implementation uses Google cloud for the API and AWS for hosting the lightning nodes. Breaking it up between two cloud providers has been mainly driven by cost; Google cloud is free for a small number of monthly active users, and AWS provides free t2.micro instances for 1 year. Eventually, the idea will be to consolidate to a single cloud provider.

Communications between the wallet and the cloud is facilitated via the Beme API. This architecture means the lightning wallet only needs a single IP address open (the API server), providing a far more secure system. Each lightning wallet is run in a docker container on AWS. The API facilitates the creation of a wallet and the communications to control the wallet. Users can retrieve their keys at any time and optionally choose to run their wallet themselves.

### Tradeoffs

There are a few tradeoffs from using Beme that users should be aware of:

1. A mobile wallet will always be [less secure than a hardware wallet](https://www.ledger.com/blog/software-wallets). The tradeoff here is between UX and security. I would not recommend users to keep their life-savings on Beme. Instead consider using a hardware wallet for large amounts and Beme to simplify the use of regular payments.

1. The lightning implementation on the cloud is costly to run. In order to provide the lightning wallets to users for free, all lightning wallets created through Beme are routed through the Beme lightning node. This means that Beme can always collect a routing fee which offsets the cloud costs.

1. Nostr is a powerful protocol. The advantage of using it is that users own their data and they can always access it by deriving it from their seed-phrase. The downside is that it is still a slow protocol compared to a cloud API, and is sometimes inconsistent with the messages it retrieves. I’ve run experiments where every now and again, messages are dropped for an unknown reason. Nostr has also made it difficult to optimise the app for speed. I’ve had to store a lot more data locally rather than fetch it as required due to its slow speed.

And thats it! I hope you have found this exploration of technologies useful. I hope you find the wallet useful once it is released.

Bitcoin Beme

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So your primary aim should be just to find a way to make them interested enough to seek out more information. Here is my shortlist of [books, podcasts, and other valuable sources](https://docs.google.com/spreadsheets/d/1Xnso-3CjVJECVJpczIjmqD5b60nJgvlZpa7JtZ1I3Ys/edit?usp=sharing) I use when pointing people to find out more.

### Tip 2: Bitcoin is an inclusive technology.

One major problem I see with the Bitcoin community is that Bitcoiners set up walls where you are either enlightened Bitcoiner, or you are a “normie”. For someone seeking to find out more about Bitcoin, the community can appear cultish, and being referred to as a “normie” or other names creates an exclusive environment that can dissuade people from finding out more. Everyone will have their own path of discovery as most of us did. Help others find Bitcoin by making the community inclusive.

### Tip 3: Be prepared to combat common misconceptions or misunderstandings

**1. Bitcoin uses more energy than some country in Europe**

This is probably the most common argument I hear. But as you will see, the real question here is not about the absolute amount of energy use, but a person’s perception of the value per unit energy that it delivers.

The adoption of any new technology that advances society has required energy. This energy consumption is often intense at the beginning and becomes more efficient as the technology develops and drives further investment. Bitcoin miners are the primary consumers of energy in the technology. Most people don’t actually understand *why *Bitcoin consumes energy — Bitcoin consumes energy to cryptographically protect the value contained within the network. However, inherent to Bitcoin is an economic incentive to reduce energy costs and maximise profits. Miner’s therefore naturally seek out more efficient technologies and cheaper sources of energy.

Over a 5 year period from 2018 to 2023, [the energy required per terrahash (energy per unit work) declined by 63%](https://www.coindesk.com/consensus-magazine/2023/07/26/the-ever-more-efficient-bitcoin-mining-machine/). It is also useful to highlight novel ways in which Bitcoin miners are consuming wasted energy or using renewable sources, such as [Iris energy](https://irisenergy.co/), or [Gridless](https://gridlesscompute.com/). These and other companies are investing into renewable energy sources. Current estimates of Bitcoin’s renewable energy usage is between [25%](https://www.nytimes.com/2022/03/22/technology/bitcoin-miners-environment-crypto.html) and [50%](https://batcoinz.com/bitcoin-by-energy-source/).

In 2016 the power consumption of data centres was estimated to be [200 TWh/y](https://link.springer.com/article/10.1007/s10586-022-03713-0). By comparison, Bitcoin consumes between [75.4 TWh/y](https://www.nature.com/articles/s41598-022-18686-8) and [122](https://cointelegraph.com/news/banking-uses-56-times-more-energy-than-bitcoin-valuechain-report)[ TWh/y](https://cointelegraph.com/news/banking-uses-56-times-more-energy-than-bitcoin-valuechain-report). The traditional financial system is estimated to consume[ 5,000 TWh/y](https://cointelegraph.com/news/banking-uses-56-times-more-energy-than-bitcoin-valuechain-report) which pales to Bitcoin’s consumption. This is not to say we should be complacent about Bitcoin’s energy use; these are all staggering amounts of energy consumption! But in most people’s mind, the value of data centres and the legacy financial system seems so obvious that they wouldn’t question its energy usage. So the real question should not be about the absolute value of power consumption, but rather whether Bitcoin provides the same global value per unit energy consumed.

Framing the energy argument in terms of the value per unit energy should help to open a discussion on Bitcoin’s value proposition.

**2. Bitcoin is volatile**

Yes, Bitcoin is volatile! But why is this bad? Most people making this claim are comparing Bitcoin to holding shares in some big tech company. Bitcoin is not a company! Comparing it to a company means you haven’t understood the Bitcoin’s true value proposition of it becoming the hardest form of money. Furthermore, despite its current volatility, Bitcoin continues to [outperform most stocks and gold](https://www.tradingview.com/chart/BTCUSD/XAZGh86z-Bitcoin-Gold-and-S-P-500-Return-of-investment-comparison/).

Bitcoin is a truly free market asset, unlike other forms of investment influenced by capital controls which act to dampen volatility. Bitcoin’s adoption still sits below 5% globally. As adoption increases, its price will continue to stabilise as it has been over the past decade (see figure below).

![Bitcoin price volatility index (source: [https://buybitcoinworldwide.com/volatility-index/))](https://cdn-images-1.medium.com/max/3064/1*yIhHBNVUofk9iX6STG1FRQ.png" class="embedded-image" loading="lazy">)*Bitcoin price volatility index (source: [https://buybitcoinworldwide.com/volatility-index/](https://buybitcoinworldwide.com/volatility-index/))*

Volatility will continue to be a feature of Bitcoin in the near future. But this is not necessarily bad. Investment into Bitcoin, like any asset, should be taken with consideration of a person’s financial position and their ability to weather this volatility.

**3. Bitcoin facilitates illicit activity and the anonymity of the criminals.**

There is no escaping the fact that to some degree [Bitcoin has facilitated the exchange of drugs](https://cointelegraph.com/news/crypto-cash-and-drugs-crypto-use-grows-as-drug-trade-digitalizes) and other illicit activity. However, Bitcoin offers a level of traceability that hasn’t existed previously with cash. Bitcoin is not anonymous, it is pseudonymous. It depends on a public ledger that facilitates the tracking funds, and KYC (Know-Your-Customer) on/off ramps that help link transactions back to individuals. This tracking has led to the downfall of the [silk road and several associated criminals since](https://www.justice.gov/usao-sdny/pr/us-attorney-announces-historic-336-billion-cryptocurrency-seizure-and-conviction). Law enforcement and journalists are constantly coming up with tools to track the the movement of [cryptocurrencies used in illicit activity](https://www.bellingcat.com/resources/how-tos/2019/03/26/how-to-track-illegal-funding-campaigns-via-cryptocurrency/).

Bitcoin is a neutral technology. Blaming Bitcoin for the drug problem is as silly as blaming the internet, the [postage service that sends a large portion of drugs](https://www.afp.gov.au/news-media/media-releases/return-offender-afp-and-australia-post-target-criminals-using-postal), or cars that drive them from location to location. It will never be escape the fact that some people will use it for illegal activity, as people have and will continue to do with any form of money.

**4. Bitcoin is a Ponzi scheme.**

Many other cryptocurrencies which are actual Ponzi schemes have given people a negative impression of Bitcoin. I once had a family member, who knew about my great interest in Bitcoin gleefully exclaim “Hey did you hear!? Bitcoin is dead!” She was referring to the news about the downfall of [OneCoin](https://www.justice.gov/usao-sdny/pr/co-founder-multi-billion-dollar-cryptocurrency-pyramid-scheme-onecoin-pleads-guilty). This comment made me realise how important it is to help people understand the fundamental difference between a decentralised Bitcoin and a centralised crypto Ponzi.

In simple terms, Bitcoin being decentralised means there is no single entity in charge or profiting from the value of Bitcoin, nor are there profits derived from getting people into Bitcoin.

A follow-on comment I often get is that early adopters cause an imbalance in the distribution of wealth. This is currently true. It is estimated that [0.01% of addresses hold 58% of all Bitcoin](https://www.frontiersin.org/articles/10.3389/fbloc.2021.730122/full). But we currently live in a world of rapidly rising inequality and a financial system that [promotes the financial privileged](https://bitcoinmagazine.com/culture/check-your-financial-privilege). Over the past 40 years, the top 1% of income earners has seen their share increase from about 11% to almost 20% in the USA (see figure below).

![Total share of income of the top 1% of earners (source: [https://wid.world/))](https://cdn-images-1.medium.com/max/2068/1*aASzDvXtuKeBUV-FFGHspQ.png" class="embedded-image" loading="lazy">)*Total share of income of the top 1% of earners (source: [https://wid.world/](https://wid.world/))*

You can research into the effects leading to inequality and you will read very contradictory arguments from both sides of the Bitcoin camp. So I’m not going to argue that Bitcoin solves the problem of wealth inequality; that is yet to be seen. But the growing digitisation of financial services is already creating a [positive effect in reducing wealth inequality](https://www.worldbank.org/en/news/feature/2022/07/21/covid-19-boosted-the-adoption-of-digital-financial-services) around the world. One of Bitcoins main benefits is that it promotes *financial inclusion*, which I believe can only result in a positive outcome for reducing inequality.

**5. Bitcoin is an intangible asset**

I once tried to explain to a family member the link between physical gold and Bitcoin. I used the analogy that energy is trapped in physical gold, and energy is required to extract it. This is similar to extracting and storing energy in Bitcoin. He laughed at me smugly.

Some people will have a really hard time comparing a physical asset to a digital one. They assume a digital asset can be copied, and it has no meaningful use in the real world. Bitcoin requires some tech literacy which you cannot teach in an evening!

Instead, you can highlight that a physical asset like gold is a great store of value; we have been using it to store value for millennia. But it is not a great medium of exchange. How can you break it up into smaller pieces? How do you send it across the world?

Bitcoin solves these problems. Like gold, Bitcoin cannot be copied or debased. But unlike gold, you can send fractions of a Bitcoin instantly anywhere across the globe.

**6. Bitcoin is a speculative and immature technology.**

Trace Mayer used to talk about the [seven network effects of Bitcoin](https://www.whatbitcoindid.com/podcast/trace-mayer-on-why-you-must-own-your-bitcoin-private-keys): Speculation, Merchant Adoption, Consumer Adoption, Security, Developer Mindshare, Financialization, and Adoption as a World Reserve Currency.

Speculation, being the first network effect, is an important part of Bitcoin’s maturation. Speculation drives early adoption and leads to the initial growth and innovation. Early adopters face larger risks as the price is more volatile, but also reap larger rewards. As more people adopt, merchants begin to accept it as forms of payment, leading to the second network effect and so on.

Yes, Bitcoin was a speculative asset but it is far beyond it speculative stage. We are currently closer to the “Developer mindshare” stage, where developers are working on new tools and new products that now integrate multiple technologies, like [lightning](https://lightning.network/) and [nostr](https://nostr.com/).

Bitcoin is no longer speculative. I would also argue it is not even immature, even though it has only been around for a decade. But a misconception people often make is that the dollar (AUD or USD) *is* mature. The dollar as we know it is an [experiment that has been running since around 1971](https://wtfhappenedin1971.com/), and politicians and economists still have no idea how to control it! Levers are pulled, money is debased and debt is increased time and time again.

![Debt to GDP since 1970. Australia saw a moment of recovery duing the early 2000s but began increasing after the global financial crisis in 2008. Japan’s debt skyrocketed in the 1990’s and currently sits around 260%. On average across the G-20 nations, debt has increased from a low of 23% to around 95%. (source [https://www.imf.org/external/datamapper/CG_DEBT_GDP@GDD/SWE))](https://cdn-images-1.medium.com/max/2312/1*miG_UsnG6xNRaRDyQKvXnw.png" class="embedded-image" loading="lazy">)*Debt to GDP since 1970. Australia saw a moment of recovery duing the early 2000s but began increasing after the global financial crisis in 2008. Japan’s debt skyrocketed in the 1990’s and currently sits around 260%. On average across the G-20 nations, debt has increased from a low of 23% to around 95%. (source [https://www.imf.org/external/datamapper/CG_DEBT_GDP@GDD/SWE](https://www.imf.org/external/datamapper/CG_DEBT_GDP@GDD/SWE))*

And thats it! I hope you found this useful for the next time you’re speaking to someone about Bitcoin in a developed nation.

Bitcoin Beme

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“I come to bury #bitcoin, not to praise it”. Award winning UBS chief economist Paul Donovan 🧡 https://nostr.build/av/fe2cc92bb98e256af512499fa66998a0eeb7a100a77e0edf2a53595348e90ce0.mov

https://open.spotify.com/episode/4wrCk2vNksMb7doOWIKIde?si=vuTrgozITAuKkjD0UZvYXQ