If anything goes wrong, you simply broadcast the latest state of your channel as a normal on-chain bitcoin transaction.
All your money will be returned to your address, and it will be recorded on the blockchain as normal."
You would insert 100 coins, no insurance needed ?
I don't have to trust sales arguments because smarter people than me can read the code and find flaws. Besides the system can be tested before a single coin is ever risked. It's all open source, read the code and make your own mind if you should or should not trust it.
LN flaw is any older state of your channel can be added to Bitcoin blockchain. Your only defence is try to include the latest state of your channel to Bitcoin blockchain in timelly manner, but you cant guarantee your onchain transaction going to be included to Bitcoin blockchain before is too late. LN might find its niche, but its too risky and complicated for average Joe. Bigger blocks would make using LN actually safer.
I was not aware of that. These kinds of fine technical details are why I have trust that eventually some smart person will sort it out. Is it a core requirement of how LN functions that any time state of the channel can be included in the Bitcoin blockchain or is it just because LN is not yet fully developed. Hopefully a clever solution can be found to fix this flaw. You are right though, it is a niche technology for now and not likely to be touched by Joe bitcoin user. My gut feeling tells me that btc will not be competing with other payment systems on a sheer transaction volume capability basis; at least not for a long time to come. I think most average people / investors who are aware of bitcoin see it as a sort of digital gold, and nothing more.