107: Allen Farrington ON: Bitcoin and The Hidden Complexity Behind Every ‘Simple’ Payment
Tue Nov 25 2025
What if your “simple” tap-to-pay purchase hides fourteen different payments?
This episode features Allen Farrington, an author and investor who is the co-founder and general partner at a venture firm focused on companies building on Bitcoin. He is also the co-founder and CEO of an asset management business deploying in Bitcoin, and he recently gave a conference talk debunking the idea that fiat payments are easy while Bitcoin payments are a headache. Tune in to find out what actually happens when you buy something with a card and why that mess matters for the future of money.
Most people think paying with a tap or a swipe is clean and instant, without realizing how many hidden credit relationships that fiat system is juggling for a single purchase. We look at how the costs and delays that businesses live with every day create openings for Bitcoin to act as real settlement money inside those payment flows. And we get into what that shift could mean in the next few years without pretending that any one technology instantly solves money for everyone. Because once you see how the rails really work, you can’t unsee it.
You’ll Learn:
[00:00] Introduction
[01:58] Why fiat payments rely entirely on layers of credit instead of true debits
[03:26] How lightning parallels ACH but removes banks as mandatory intermediaries
[05:12] Why inbound liquidity and always-online requirements make lightning difficult for consumers but ideal for businesses
[07:53] The real reason fiat transactions involve 9+ intermediaries and constant credit risk
[10:46] How Bitcoin enables direct settlement instead of credit extensions hidden behind payment processors
[13:32] Merchants feel the pain of fiat and how Bitcoin flips that incentive
[15:49] The future where paying in fiat carries a premium and Bitcoin payments become cheaper by default
[18:44] Stablecoins are not “worse Bitcoin,” just better fiat for broken use cases
[20:19] How stablecoins may eventually settle over Bitcoin rails as liquidity deepens
[22:41] What multiple stablecoin issuers would require and why Bitcoin simplifies interbank settlement
[30:18] Why non-Bitcoin companies need a strategic stance on it before it's a fiduciary requirement
[33:14] How fiat payment inefficiencies create the wedge that brings mainstream companies onto Bitcoin rails
Want to start a podcast like this one? Book your free podcast planning call here.
Resources Mentioned:
Bitcoin Is Venice by Allen Farrington and Sacha Meyers | Book or Audiobook
Find more from Allen:
Allen Farrington | LinkedIn
Find more from Scott:
Scott Dedels | X
Block Rewards | Instagram
Block Rewards | YouTube
Block Rewards | TikTok
Block Rewards | Website
Block Rewards | LinkedIn
More
What if your “simple” tap-to-pay purchase hides fourteen different payments? This episode features Allen Farrington, an author and investor who is the co-founder and general partner at a venture firm focused on companies building on Bitcoin. He is also the co-founder and CEO of an asset management business deploying in Bitcoin, and he recently gave a conference talk debunking the idea that fiat payments are easy while Bitcoin payments are a headache. Tune in to find out what actually happens when you buy something with a card and why that mess matters for the future of money. Most people think paying with a tap or a swipe is clean and instant, without realizing how many hidden credit relationships that fiat system is juggling for a single purchase. We look at how the costs and delays that businesses live with every day create openings for Bitcoin to act as real settlement money inside those payment flows. And we get into what that shift could mean in the next few years without pretending that any one technology instantly solves money for everyone. Because once you see how the rails really work, you can’t unsee it. You’ll Learn: [00:00] Introduction [01:58] Why fiat payments rely entirely on layers of credit instead of true debits [03:26] How lightning parallels ACH but removes banks as mandatory intermediaries [05:12] Why inbound liquidity and always-online requirements make lightning difficult for consumers but ideal for businesses [07:53] The real reason fiat transactions involve 9+ intermediaries and constant credit risk [10:46] How Bitcoin enables direct settlement instead of credit extensions hidden behind payment processors [13:32] Merchants feel the pain of fiat and how Bitcoin flips that incentive [15:49] The future where paying in fiat carries a premium and Bitcoin payments become cheaper by default [18:44] Stablecoins are not “worse Bitcoin,” just better fiat for broken use cases [20:19] How stablecoins may eventually settle over Bitcoin rails as liquidity deepens [22:41] What multiple stablecoin issuers would require and why Bitcoin simplifies interbank settlement [30:18] Why non-Bitcoin companies need a strategic stance on it before it's a fiduciary requirement [33:14] How fiat payment inefficiencies create the wedge that brings mainstream companies onto Bitcoin rails Want to start a podcast like this one? Book your free podcast planning call here. Resources Mentioned: Bitcoin Is Venice by Allen Farrington and Sacha Meyers | Book or Audiobook Find more from Allen: Allen Farrington | LinkedIn Find more from Scott: Scott Dedels | X Block Rewards | Instagram Block Rewards | YouTube Block Rewards | TikTok Block Rewards | Website Block Rewards | LinkedIn