Today in part 7 we will talk about Bitcoin as a settlement layer. Bitcoin has only existed for about 9 years now; we know it can be used as a store of value and as a payment mechanism. Another possible use for the cryptocurrency might be as a settlement layer.
In the future we don’t know if Bitcoin will used as a payment mechanism for most transactions in the world. It is possible that many transactions will be on second layers solutions, like the lightning network; or even third layers that don’t even exist yet.
Whether it will be used for everyday transactions or not, Bitcoin could still be used as a settlement layer for larger and international payments. It is not unimaginable that in the future it could be easier to just send a Bitcoin payment, in minutes, instead of having to send a wire transfer, that would takes days; to settle large payments across countries.
These payments would be really easy if the parties already held some bitcoin, they could just send the payment without having to explain anything to banks or governments, and without using third parties to which they would have to pay money.
The Bitcoin payment would be way quicker compared to the legacy system, and would be sure to arrive without any delays by intermediaries because there are no intermediaries.