Remittance Provider BitSpark Drops Bitcoin in favor of BitShares

Changes in the cryptocurrency world come in different forms and shapes. The remittance sector is benefiting from Bitcoin technology, to say the least. However, Bitspark feels BitShares provides a lot more functionality in this regard. For a company focus on remittance models, switching to BitShares may not necessarily be the best option.

It is good to see companies such as BitSpark make some interesting decisions now and then. Their business model revolves around remittance services on a large scale. So far, the company used Bitcoin technology for this particular business. While the technology has its advantages, there are some drawbacks as well. Especially now that the company wants to provide access to over 180 currencies in the next twelve months. Existing Bitcoin deposits and payment methods will remain accessible for the time to come, though. However, they will switch over to the BitShares blockchain in the future.

BitShares Makes Sense to BitSpark it Seems

One could argue the world needs more blockchain-based remittance service providers. More competition is always welcome, to say the least. However, tackling this business is not as easy as some people may think. Bitcoin is still pretty slow and rather expensive at times. As a result, people need to prefund balances at liquidity providers. Although Bitcoin network fees are low now, that situation can change at any given moment. In fact, this year has shown how high fees can get as far as Bitcoin is concerned. Issues with the mempool have been prevalent several times in the past few months.

Additionally, there are also a lot of companies embracing this model which eventually disappeared. In most cases, this was due to their business model not being sustainable for the long run. Bitspark wants to prevent this from happening to them as well in the future. Additionally, trading between major FX pairs makes no sense for Bitcoin remittance providers. Plus, liquidity is still a major concern. Without another party to take the trade, transactions can be delayed by several hours.

BitShares seemingly makes more sense in this regard. It allows for pegged cryptocurrency creation, which is quite beneficial to companies such as BitSpark. Additionally, it is seemingly a lot cheaper and faster compared to Bitcoin right now. Plus, there is a real decentralized exchange with zero counterparty risk. That doesn’t mean BitShares is indefinitely perfect, though, as there is still plenty of room for improvements. Especially governance is a bit of an issue considering the use of delegated proof of stake. It will be interesting to see how this switch plays out for BitSpark, to say the least.

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