Utter nonsense.

There is no such thing as a modern bitcoin wallet that *doesn't* encrypt the wallet ( including, most importantly, the private keys ), and then send it somewhere as a backup. To *not* do so would be a major flaw in the design of a bitcoin wallet.

Also, you're making loads of false assumptions because you're apparently too lazy to do the research... or even watch a few videos.... and try to understand them.

Airbitz does not encrypt the private keys using only the password. See quote below.

Airbitz did not create the p2p network. It's an industry standard architecture for securely backing up in a distributed way.

That video was done Sept 2014. By now, Airbitz is already taking the lead in the bitcoin wallet space. Nobody has ever lost any bitcoin using Airbitz. Many users store $50,000 to $100,000 in their Airbitz Wallet on their phone. It's actually quite common. It's pretty much *impossible* to lose bitcoin by any means.... if you use Airbitz.

It's already automatically backed up.... by the time the wallet is able to receive money.

You could install the app, then I send you $100, then you immediately drop your phone into the ocean..... and you wouldn't lose a cent.

From https://airbitz.co/go/faq/

AirBitz uses AES256 for encryption and the keys are generated from the userтАЩs login + password. The login & password are combined then hashed using Scrypt with a minimum set of (N,r,p) parameters of (16384,1,1) which is many orders of magnitude stronger than most other wallets, especially web wallets which typically only use a SHA hash with a few thousand rounds. Scrypt is way more memory and CPU intensive per round.

The minimum parameters of (16384,8,1) are only on slow iPhone 4 or old Android devices. On faster phones the parameters can go as high as (128000,8,1) which are extremely difficult to brute force.

Also note that no Scrypt ASIC miners can hash Airbitz passwords as ASIC miners only use parameters (1024,1,1).

Random number generation is a critical aspect to cryptography, and Airbitz utilizes several sources of entropy to provide randomness. First is the operating system random number generator. Airbitz calls directly into the core of the OS, bypassing potential issues with libraries such as those present in an earlier version of the Java library. Entropy is also added from various system sources such as free memory, time/date, and file system info. This combination protects from a compromise of any one of the entropy sources.
If you watch this video starting at 11m 30s ..... This guy actually gives a very good whiteboard overview of the unique security and architecture features of Airbitz. No other wallet comes close to this level of security and loss-prevention.

https://youtu.be/eFoEdKxH1fQ