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The world of cryptocurrency is subject to rapid change and development and once in a while, actions speak louder than words about which cryptocurrencies will have a secure place in the future. 

Bitspark, is a crypto-financial provider for the APAC region. It provides blockchain powered remittance services and according to an article entitled 'Bitspark switching from Bitcoin to Bitshares for remittances' published on CryptoNinjas, it will be switching to the Bitshares blockchain from Bitcoin. 

There are several reasons Bitspark believes Bitshares decentralized exchange will be a better fit for its booming remittance business.

In this article we will explore a few of these reasons and try to understand what makes Bitshares a better fit for this type of business application. 

>The new payment method will be rolled out slowly for specific currency pairs so that Bitspark’s remittance users will have the access to all of the worlds 180+ currencies within the next 12 months. Existing bitcoin deposits and payment methods will still persist for a time while Bitspark makes the switch.

According to this statement users will be able to trade in over 180 currencies which makes them a perfect solution for companies looking to move to state-of-the-art payroll systems. 

<H3>The following are three reasons why Bitspark has decided to switch to Bitshares from Bitcoin. </H3>

>Predictability – Bitspark said that for most of this year the prevailing wisdom for elevated Bitcoin network fees has been “just pay more fees” which is not reasonable when there is no predictability or when margins for payments on a $200 transaction can be wiped out on a $3 fee. Using dynamic fees also does not work as a value proposition for users. When a customer does a remittance, trustworthiness is not gained by telling them “one day your fee might be $1 another day it could be $3.”

>Limitations to accessible currencies – Bitspark says that in their experience, bitcoin remittances make no sense for trading between the major FX pairs, its benefit is for exotic currencies in often developing countries. The reason being spreads on exotic currencies are larger, however, accessing liquidity via traditional methods is difficult with everyone being channeled through a few gatekeepers. Although bitcoin is traded in many places around the world, only a few emerging market currencies are viable for remittance payments due to the partners in place or the payout methods, fees and connectivity available.

>Liquidity is always a consideration – Although there are many components to cryptocurrency remittances, an important factor is liquidity. One needs someone willing to take the other side of a trade in order to transfer money from one location to another via bitcoin (or any other similar crypto) it’s often not a large problem for most cryptocurrency remittance providers as many of the remittance companies have a good list of reliable liquidity providers with capacity far greater than their current need. 

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It seems that in the areas that are most important for running a business like Bitspark's Bitcoin finds the most weakness. Due to the lack of predictibility, limitations of currencies and liquidity issues Bitspark has made its decision. 

<H3>The following are a few advantages that Bitshares has over Bitcoin in regard to the points made above. </H3>

Firstly, Bitshares is both cheap and fast.

>The Bitshares Blockchain itself is built to scale to 100,000 transactions per second with fees as low as fractions of cents and confirmation times sub 3 seconds. Additionally, the Bitshares blockchain has been fully functioning for 2+ years and has passed its testing stage as a viable blockchain.

Secondly, Bitshares has another way to handle liquidity. 

>In the Bitcoin world, a willing participant is needed on the other side of a trade to fill the equivalent fiat value when conducting a cross border transfer. This usually means the need to integrate with one or several liquidity providers or manually manage incoming and outgoing payments as well as manage BTC exposure appropriately. At some stage, people are needed with fiat to offload incoming BTC, which in many countries can be quite challenging.

>The vital connection to local liquidity is through fiat currency, in order to participate as a market maker in various countries fiat currency is needed to deposit and exchange with which often means the need to actually be in the country to be a market maker since bank accounts will be needed for those local currencies. However, there are not always market makers in every country. For example, it is easy to send someone bitcoin in Myanmar but harder to find more people with Kyat (the local currency) to exchange for BTC, in order to do that the only way to get Kyat into the system is through some centralized entity or gateway and which might not exist.

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>With decentralized pegged cryptocurrencies issued on Bitshares, anyone can issue the fiat pegged cryptocurrency so long as they have appropriate BTS to lock up in a smart contract as collateral. This is important as it means anyone around the world can participate as a market maker in various global currencies on the fiat side of the trade without the need to have the local fiat currency on hand via a gateway, it can be entirely automated and done digitally.

Finally, Bitshares offers a way to exchange cryptocurrency which is completely decentralised and subject to zero counterparty risk. 

>As noted, Bitcoin remittance companies and OTC traders rely on a number of intermediaries to ensure they have adequate liquidity to enter and exit bitcoin profitably. It doesn’t matter how reliable, trustworthy or regulated these intermediaries are, it is still a counterparty risk where trust is needed in the process. If there is any issue with any of your intermediaries it can affect business severely. For example, a money transfer operator can lose their bank account simply because banks foresee risk in remittances, not due to any breaches a money transfer operator has actually done. This is unacceptable as global micro payments grow and a need for a trustless system to exchange value becomes more in demand. Bitspark believes the Bitshares DEX is one step closer to making that happen.


<h1>Techblogger Wrap Up</h1>

Do you think Bitshares has what it takes to compete with the grandfather of all cryptocurrencies, Bitcoin? Is this the beginning of an evolutionary change in cryptocurrency and should we expect more partners leaving Bitcoin in favor of Bitshares?

Please leave your thoughts, comments and feedback below. 

Thanks for reading! 

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Source: 

Bitspark switching from Bitcoin to Bitshares for remittances - CryptoNinjas

IMG Source: 

Pexels