CoinText CTO: BTC Wallets Via SMS Aren’t Viable; Is Why they Chose BCH
CoinText's CTO sent us a tweet in which he said that Bitcoin SMS wallets aren't viable.
As cryptocurrencies put the pedal to the metal on entering the mainstream, a number of companies are looking to target the millions upon millions of people who have no access to bank accounts.
Startups like CoinText do this by allowing people to hold and send Bitcoin Cash entirely via SMS, enabling them to enter the cryptocurrency market without having any internet access.
The CoinText CTO, Vin Armani, sent us a tweet earlier, after a discussion about one of our pieces, explaining that “BCH is one of the networks where SMS wallets are still viable,” explaining why the company doesn’t use Bitcoin (BTC).
CoinText also explains on its site that because it simply acts as a vehicle for transactions, it needs a cryptocurrency with a strong commitment to work as quickly as possible and very low transaction fees.
“In order to be viable, the CoinText application requires a cryptocurrency that is committed to 0-confirmation speed and on-chain scaling to keep network fees low. Bitcoin Cash is the only cryptocurrency dedicated to that vision. Additionally, the Bitcoin Cash community is the most vibrant and dedicated in the entire space,” said the company.
If we look at Bitcoin Cash’s and Bitcoin’s transaction fees, we can see how BTC spiked at over $50 per transaction in the days leading up to the end of 2017 when the cryptocurrency experienced an enormous spike in value beating the $20,000 threshold.
Its fees through 2018 were still hovering at around $1, with spikes to $2 and above in the middle.
On the other hand, Bitcoin Cash has maintained its transaction fee under a dollar, approaching 90 cents when the big price boom happened in December.
This is not for a lack of demand, as the total trading volume of the cryptocurrency sits comfortably at around $2 billion every 24 hours.
On the other hand, there are services out there that offer SMS wallets for Bitcoin, including Coinapult, Kipochi, and Blockchain.info.
These services, however, offer digital wallets alongside SMS features, allowing them more flexibility in how they handle the transaction fee issue.
The fact that Bitcoin Cash is getting this kind of attention could play well for the cryptocurrency, as it began rallying over the last week to a value above $1,500, a number it hasn’t seen since February came to a close.