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  5. The FED published a study on the Lightning network. These are his conclusions

The FED published a study on the Lightning network. These are his conclusions

The FED published a study on the Lightning network. These are his conclusions

Bitcoin is the new hot topic for the Fed. Fresh off the Federal Reserve Bank of St. Louis measuring inflation in BTC terms, the Federal Reserve Bank of Cleveland presents a study called “The Lightning Network: Turning Bitcoin into Money.” An in-depth investigation that unfortunately only “covers the period from January 1, 2017 to September 5, 2019”, its conclusions are far from surprising.

“We found a significant association between LN adoption and blockchain congestion reduction, suggesting that LN has helped improve the efficiency of Bitcoin as a means of payment, which is explained by other factors, such as changes in the demand or the adoption of SegWit.

However, what is surprising here is that the Fed is investigating the Bitcoin Lightning Network. And he has positive things to say about it. What’s going on here? Let’s see what they found to see if it gives us any clues.

BTC price chart for 07/14/2022 at Timex | Source: BTC/USD on TradingView.com

Table of Contents:

The most interesting observations of the FED

Well, the Fed is exactly the target. Could “falling mining fees” affect the project in the long run, as altcoin fans like to say? Maybe in 50 to 100 years. For now, miner rewards are guaranteed.

Good to know EDF!

In this study, every little sentence has its source… except this one. Why is it, FED?

Notice the “may” here, it’s not guaranteed. And that’s the least interesting thing about The Lightning Network.

Take that, altcoiners! Even the FED knows how terrible the “Lightning Network is centralized” argument is. Nevertheless…

Good to know, Federal. However, no one wants or needs centralization.

Observations on the Bitcoin network as a whole

There are no more comments on these.

Dubious observations in the Fed study

Lightning Network involves much lower power consumption as it does not require mining. However, the bitcoin network and PoW mining are the best friends of the environment, as this other study clearly shows.

High, federal. The bitcoin network is the only decentralized one. Altcoins can be many things, but decentralization is not one of them.

The surprising results of the study.

Once again, that is exactly the goal. However, it is good that even the Fed admits that it is working as intended.

It is worth remembering that the channels and network capacity are at an all time high.

Fine, but no one wants centralization anyway.

These are promising numbers, to say the least.

Even the Fed knows it.

However, it is the case. And the party has only just begun.

Yes, that is exactly the goal.

And that’s it. It’s crazy how this Fed study and the blog post discussed above came to such different conclusions. Are we dealing with a good cop/bad cop situation here?

Featured Image: FED Study Cover Image | Charts by TradingView

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