Cryptocurrencies offer a wide range of solutions to current financial problems. However, these arrangements are still often more theoretical than practical. One area where a strong push is being made for real-world use is Twitter.
Strike and Twitter launched bitcoin tip in 2021. This lit up the bitcoin Twittersphere. The community took the opportunity to support each other’s work using the BTC around which their links are built.
Initial distribution extends to the United States and El Salvador only. However, Strike CEO Jack Mallers says the aim is to expand into the UK and Europe by the end of this year.
This is an impressive step towards stable BTC payments in everyday life. However, the lack of global presence and isolation to the Apple operating system puts it at an early stage.
A brief history of tipping
While tipping in the digital age has been linked to the rise of the creator economy, the phenomenon is not new.
In the US, it has its roots in the caste system in Europe. Early references include tipping US servants who did well while away with their employers in Europe. When the families returned to the US after their vacation, they continued this practice.
During the reconstruction period after the American Civil War, freed black Americans worked in service jobs. These included railway porters, barbers and restaurant workers. Their employers would often not pay them, instead expecting guests to offer a small tip.
Despite the resistance, the popularity of the practice grew. By 1926, all legislatures banning tipping were ruled unconstitutional by the courts.
Fast forward to 2021, and a pandemic later, tipping is still happening. However, its medium has changed from a few notes or coins to online payments.
TipYo was one of the early players in the digital tipping space. It first offered a way for hotel guests to tip a valet, bellman or housekeeper by entering their room number into an app and adding a payment method.
Similar projects have emerged, with varying degrees of success. However, they are often region-specific and require a link to a bank account.
Tipping and the creative economy
The growth of the Internet, even in its form of Web2 stewardship, brought with it the removal of middlemen in some industries.
Musicians, artists and others, especially creatives, can share their work and have others rate it directly. However, this still left a lot to be desired when it came to revenue.
Enter the creator tip economy. Now users can directly respond to and rate their favorite creators by paying them online.
This is not only useful for those in content creation jobs. It is also essential as more work is becoming gig and freelance based. While these jobs pay some form of salary, many of the benefits come from added tips.
While Uber may have started as a one-price payment system, it introduced tips for drivers and even tips for restaurants during the COVID-19 pandemic.
In addition, the ability to monetize content has increased with demand and growth. Social media influencers who were previously paid by promotions can now add direct content payment on several platforms.
Content creation platforms are now providing ways for their users to monetize their content. TikTok recently allowed users who meet specific criteria to apply for a tip feature.
Additionally, Soundcloud is working on a tip scheme for artists, and Twitter introduced its general tips feature on May 6, 2021.
Enter bitcoin tips on twitter
After its general integration with popular fiat apps, Twitter turned to bitcoin.
The integration of Strike’s API with Twitter was a welcome move in the world of bitcoin payments. It brought another direct payment option, but with a currency free of some fiat shortages.
This API is successful because it uses the Lightning Network. This is a second level of the bitcoin blockchain that provides separate micropayment channels between different parties to form a network of lightning nodes.
Channels enable secure payments between two parties in exchange for making only a few transactions on the blockchain.
The benefit of Lightning is that it solves the two biggest issues when it comes to bitcoin transactions. There is time and cost to complete a payment. By reducing time and cost, something as fast and straightforward as BTC Twitter payments is possible.
Bitcoin exposure on Twitter is still small
Twitter’s explanatory blog on tipping begins with the headline “Bringing tips to everyone.”
However, on closer inspection, “everyone” cannot interact with the various tipping mechanisms if we are talking about users outside the US.
Starting with conventional tipping, the apps offered for integration are heavily based in the US. Twitter even acknowledges this with an asterisk, indicating to a reader the fact that it is region-specific.
As far as bitcoin tips go, the border between the US and El Salvador, where Strike operates, makes availability extremely scarce.
Expanding Strike and Lightning Network
This doesn’t mean that access to payment channels like Twitter tips will remain only within these two countries forever.
Maller says Strike plans to expand to 200 countries in partnership with Bittrex Global. All Bittrex users will be introduced to Strike and Lightning.
Although not confirmed, the extension of the exchange should enable Strike account users to link their Twitter wallets.
Mallers explains in an interview with the Investor’s Podcast Network that he aims to bring financial inclusion to countries with large unbanked populations. He cites as an example Strike’s reach in El Salvador, which sees 20% of the country’s GDP come from expensive cross-border remittances.
This is a long-term goal of many in the cryptocurrency world. Remittances are often cited as a key area where cryptos can directly help people.
In addition to the announcement with Bittrex, in October 2021, Strike announced “global” tips for iOS users. This means that those in countries not covered by Strike can send tips to those in the US and El Salvador, but cannot receive tips in return.
Although Strike and Mallers did not respond to BeinCrypto’s request for an interview, he is on record explaining the slow global rollout.
In the podcast What Bitcoin Did, he emphasizes the importance of quality assurance in all of their products.
According to Mallers, the “dematerialization” of all existing money functions into a single monetary standard is not trivial. As such, he explains that they’re not rushing the show. He says they want to do it right instead of taking it fast.
Paying with bitcoin is not a pipe dream
While the reach of the BTC Twitter tips is small and the steps towards global reach take their time, they offer a glimpse of a future with regular bitcoin transactions.
It may still take some time as new issues arise with each step forward. However, the interest in making this a viable reality is clear from those, like Strike and others, who are actively pushing this agenda forward.
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