Systems were made for Man, not Man for Systems.

FC:  As legacy electronic banking is double entry, transactions across the central bank settle instantaneously due to simultaneous posting. So do transfers within the same bank.

I don’t really buy the argument that liquidity problems only arise in a long-term credit system. Lightning payment routes depend wholly on people being willing to allow their funds to be used to settle payments about which they know nothing. If the system allowed people to refuse, liquidity would dry up. Lightning devs seem to think they can solve this problem by denying people the right to refuse to settle other people’s payments. But even with coercion, it is possible that for some payments there could simply be no route, if people kept payment channel funds at the bare minimum. I’d call that a liquidity problem, personally.

Me:  Correct. Liquidity problems are only a sign that the true problem, individual income, is much lower than it normally is, and individual income is pitifully and chronically scarce even under “good” economic times. The velocity of money is really just that, an indication of commercial liquidity. People and astonishingly even economists think its additional individual income because the classical story of it that depicts the hotelier taking $20 to the baker who takes the same $20 to the butcher, candlestick maker etc. However the description is fallacious because whatever money circulates back into the economy is BUSINESS REVENUE NOT INDIVIDUAL INCOME and business revenue must be expensed against all business costs until a relatively small percentage of it is finally distributed as individual income….and that not only is woefully inadequate it does not go up significantly even if “good” times are on. What? Does the entrepreneur immediately give everyone a raise just because his/her revenue went up 10%. Think again. The whole crypto thing is another rabbit hole distraction from the real problem which is the chronic and increasing scarcity of INDIVIDUAL INCOME.