Can I pay in bitcoin?
I bought a coffee with sats yesterday. It was impressive how unimpressive it was.
I ordered an espresso for myself and a hot chocolate for my son and when the barista rang it up I asked, "Can I pay in bitcoin?"
He said, "Of course" and tapped something on the register. The screen in front of me displayed a QR and an amount in sats. I scanned it and paid in a few seconds. It felt very similar to paying by credit card.
There wasn't any fanfare, no surprise on the barista's face, it didn't feel like anything special.
Was it the most peer-to-peer payment I've ever made?
I have no idea whether the coffee shop is keeping the sats or if they were automatically converted to dollars in their bank account. I am certain they aren't using their own lightning node and that they don't have any channels.
I was using Phoenix wallet -- which means my wallet only has one channel (with the Phoenix LSP) and if they were to deny me service, I can't even manually open a channel with another LSP. I would need to send my sats out via the chain (the app does allow you to connect to a custom electrum server).
This payment was hardly free of third parties.
And yet, it felt like the closest I have come to using bitcoin as a peer-to-peer electronic cash system.
It's not a peer-to-peer electronic cash system if nobody accepts it in trade
It's no secret that Bitcoin is most encumbered at the on and off ramps. I can send it to anyone, anywhere, anytime and no one can stop me -- but as soon as a person tries to convert it to fiat, everything falls apart.
Mostly, exchanging fiat means kyc and using the traditional banking system. If you want to avoid these things, you can use Peach, Robosats, or Bisq, but unless you are paying in cash, you are probably touching the traditional banking system somewhere (credit card payment for a gift card, PayPal or Wise to send fiat to the bitcoin seller).
While there are more and more places that accept bitcoin, growth in such merchants has been slow and is not widespread.
Which means most of what we do with our bitcoin is buy it with fiat or sell it for fiat.
My exchange is everywhere I spend bitcoin
Our financial systems have become highly effective tools for governments to exert control over us. But it's possible the architects of this system made a mistake: they rely on centralized systems.
My bitcoin payment at the coffee shop yesterday revealed a huge crack in the walls they are trying to build around us. If I can pay for things directly in bitcoin, I can skip all their controls.
Sure, the merchant was kyc'd seven different ways, but my payment was not. I could have taken a picture of the QR code and posted it on the internet. Anyone in the world could have paid it. I could have paid it with any lightning wallet. I could have paid it with an atomic swap from an onchain wallet. I could have paid it with an ecash wallet.
The more we can pay bitcoin for the goods and services of our daily lives, the less likely the kyc regime matters.