reply on: Thinking through Cashu \ stacker news ~bitcoin

21 sats \ 11 replies \ @kevin 13 May \ on: Thinking through Cashu bitcoin

If you're running your own node with Lightning there is little reason to use something like Cashu since it's custodial.

I would much rather use Phoenix than Cashu.

1547 sats \ 5 replies \ @48f396bf65 13 May

For spending I would much rather use Cashu, because I don't want my transaction history stored in some company database

If you don't like Phoenix then use something else that doesn't route to an LSP. Many options exist: Blixt, Zeus come to mind.

You need to understand the tradeoff that you're making here - in Cashu (and other ecash solutions) the mint can take your money at any point and run away with it. With Phoenix you expose information about your transactions to a third party. Would you rather have your money or your perfect privacy?

521 sats \ 0 replies \ @48f396bf65 14 May

For everyday spending, I'd much prefer perfect privacy, given the very low risk of a rug.

Agreed on your point that users need to understand the tradeoffs though.

Also, not every user can (or will be able to) afford the on-chain fees necessary to open a lightning channel.

0 sats \ 0 replies \ @crrdlx OP 14 May

Nicely put. Someone in economics said, "There are no wins and losses, only tradeoffs."

0 sats \ 0 replies \ @anon 14 May

I use cashu all the time to help give other people anonymity. The more people who use it the better.

Also a good reason to regularly use the anon reply feature!

0 sats \ 0 replies \ @030a29f333 13 May

I'm really not sure why this concept is so hard to grasp

0 sats \ 1 reply \ @030a29f333 13 May

Cashu privacy is way better than using Phoenix

0 sats \ 0 replies \ @kevin 14 May

Yes, but it is custodial and the mint can run away with your money at any time. Would you rather have your money or your "perfect" privacy?

0 sats \ 0 replies \ @tolot 13 May

If you have some friends using your node as a custodian node, you're better off with cashu. If you are providing custodial services on lightning, you're better off with cashu. Clearly not every LN node will be a mint because economically it makes no sense. But there are use cases

0 sats \ 1 reply \ @crrdlx OP 13 May

I understand and that's certainly your call. I've never used Phoenix, but I know it's a great wallet and totally self-custody. Some folks might find Cashu worthwhile in instances. Choices are nice to have, right?!

10 sats \ 0 replies \ @kevin 14 May

Choices are great, but it's important that people understand that Cashu (and Fedi) is custodial. That means you do not have control over your money.

The mint can run away with your money at any time.

I feel like this risk is very often understated. It should be front and center. Not mentioned in a footnote.

Literally any non-custodial solution (Phoenix, Blixt, Mutiny, Zeus, etc.) is better if you can afford to do it, at the moment setting up a lightning channel is not that expensive.