Unconfiscatable Bitcoin Conference - Part 17 - Jack Mallers joins

## Unconfiscatable Bitcoin Conference - Part 17 - Jack Mallers joins: Summary

This episode of the Unconfiscatable Bitcoin Conference features a discussion with Jack Mallers, founder of Zap Wallet and Strike, focusing on a new payment system designed to simplify Bitcoin adoption for a mainstream audience. The core innovation lies in allowing users to link their debit cards to the Strike app and make payments via the Lightning Network by scanning QR codes. This process effectively converts fiat currency to Bitcoin on the backend, bypassing the need for users to directly hold or manage Bitcoin themselves. This approach addresses common barriers to entry, such as volatility concerns, complex custody procedures, and potential tax implications, making Bitcoin payments accessible to individuals who might otherwise be intimidated by the technology.

The conversation delves into the practical applications of this system, particularly for businesses in industries facing banking challenges, such as the legal cannabis industry. These businesses often struggle with payment processing due to federal regulations and frequently operate with large amounts of cash. Strike offers a solution by enabling customers to pay with debit cards, effectively using Bitcoin/Lightning without direct interaction, and even offering a 10% discount for Lightning payments. A key distinction is made between using Strike and a non-custodial wallet like Zab: Strike users are not considered Bitcoin owners and therefore avoid capital gains taxes on transactions, while Zab users are subject to those taxes. The hosts emphasized that while Strike simplifies Bitcoin adoption, it is not focused on maximum privacy or self-sovereignty and operates in compliance with KYC/AML regulations.

Ultimately, the hosts express a preference for holding Bitcoin and using Strike to transact in USD, viewing it as a way to spend “shittier currency” (USD) without diminishing their Bitcoin holdings. They believe that simplifying the onboarding process and masking the underlying complexity of Bitcoin/Lightning is crucial for broader adoption. The system is currently in beta with over 200 users, demonstrating its potential to bridge the gap between traditional finance and the Bitcoin ecosystem.

Main Topics Discussed:

• Strike/Zap Wallet Payment System: Introduction and explanation of the new debit card linked Lightning Network payment system.
• Simplifying Bitcoin Adoption: Addressing volatility, custody, and tax concerns for mainstream users.
• KYC/AML Compliance: Discussion of regulatory compliance and the level of KYC required.
• Cannabis Industry Solutions: How Strike facilitates payments for businesses facing banking challenges.
• Tax Implications: Comparison of tax liabilities for Strike users versus users of non-custodial wallets.
• Onboarding New Users: Emphasis on ease of use and simplified onboarding processes.
• Bitcoin as a Store of Value: Preference for holding Bitcoin and using Strike for everyday transactions.

Key Quotes:

• Jack Mallers: "All you have to do is link your debit card, scan any Bitcoin lightning QR code you want. And it will debit from your fiat account. And it'll magically poop out Bitcoin on the other side."
• "We give a discount if you pay in Lightning."
• "You are not deemed an owner of the asset [with Strike]."
• “I don’t spend Bitcoin. I hoddle Bitcoin.”

People Mentioned:

• Jack Mallers (Zap Wallet, Strike)
• Adam (Debated with Jack)
• Peter Todd
• Jimmy (Moderator)
• Bobby Lee (Ballet Crypto)
• Annie (Podcast Host)
• Thomas
• Parents of the host (involved in a cannabis dispensary)
• Oaksburg Dam (cannabis business)

Bitcoin Price Mentions:

• Bitcoin was mentioned in the context of tax implications, with examples of $10,000 and $5,000 used to illustrate potential capital gains scenarios. No current market price was discussed.