Jack Mallers ‘ Strike will sell bitcoin with almost 0 commission

Key facts:
  • Bitcoin Tab will be the name of the section that will allow to buy BTC within Strike.

  • As they explain, commissions are currently over 0.3% and are expected to reach 0.1%.

Strike has informed its users that they will be able to buy bitcoins with commissions close to 0 through the new Bitcoin Tab feature.

The announcement was released on July 2 by Jack Maller, CEO of Zap Solutions, developer of Strike. In his message he explains how Strike would now compete with companies such as the Coinbase exchange, which, according to the statement itself, charges commissions of about 3% for each BTC purchase.

According to the publication, the current purchase and sale commissions, in their first stage, will be around 0.3%. However, they are expected to drop to 0.1% or even 0, since they consider that, “the higher the volume of trade, the lower the commission”.

The commission within Strike, according to the announcement, is set by the spread, or the spread between the buy and sell price, set by BTC providers to the platform.

To buy, users will be able to affiliate your account or bank card to buy BTC directly in the app. Strike has a presence throughout the United States. Also, it was recently learned that he would be working with the Government of El Salvador to reach a commercial agreement, allowing Salvadorans to buy bitcoins with their local modena.

I’ve been buying bitcoin on Strike for about a month. I’ve been a bitcoiner for almost a decade at this point, and I’m proud of the experience we’ve built. Buying bitcoin without additional fees is as it always should have been.

Jack Mallers, CEO of Zap Solutions.

The launch of Bitcoin Tab within Strike is expected to occur within the next few weeks, according to the announcement. However, users can start signing up for a waiting list using their email, from the main Strike portal.

Regarding Strike, this is a platform that allows you to send and receive fiat money for free. For its operation, it uses Bitcoin technology and the Lightining network for sending and receiving money. This does not necessarily mean that users get the BTC in their wallet. However, with the new Bitcoin Tab, users will be able to store and maintain balances in BTC.

Strike vs Coinbase

In the statement published by Jack Mallers himself, he makes a comparison between the prices that giants such as Coinbase can offer, including other payment platforms similar to Strike, such as Venmo and CashApp.

Jack Mallers mentions that Strike will seek to bring commissions to 0, when buying BTC. Source: Medium.

As Mallers mentions, large companies have built businesses by charging fees for acquiring bitcoins. Coinbase, with revenues of $ 1.8 billion, charges 3%, on average, in commission, notes the writing.

In a free market environment, Jack comments in the release, companies should compete for the lowest fees to acquire Bitcoin. In this case, Coinbase does not make the slightest effort, since, according to its own CFO, Alesia Haas, the company does not compete for rates, but for being more reliable.

With the high demand that bitcoin is suffering, new platforms have been added allowing their users to acquire bitcoins. However, Mallers mention that while they offer slightly lower rates than Coinbase, they still remain above 2%, far removed from Strike’s current 0.3%.

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