Monday, March 20, 2017

The airpocket issue with mobile wallets

Smart phones as pure cash work fine with proper hardware security at the root. But the bulk of the market will have both, hard and smartphone wallets.  Smartphone vendors have a problem. 

The user always has the smartphone in hand, and usually the hardware wallet in pocket. There is a denomination issue, the user is not waving about a thousand dollar bill, that stays in the hardware wallet. The smartphone wallets will be carrying a $100  denomination.  

So the hardware wallet become the master accountant, the one you pull out for serious investing. Applications exist on the smartphone, and it is a very lucrative relationship, for smart phone vendors. However, all the contracts bound to the hardware wallet.  Everyone is better off with widespread use of hardware wallet.

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