Bitreserve: using Bitcoin to replace your bank

[BitcoinNewsMagazine]

Bitreserve is built on top of bitcoin and hopes to reduce bitcoin volatility and provide a no or low fee alternative to banks. For a quick explanation of how it works see the article Bitreserve Uses Bitcoin To Finally Replace Your Bank.

Bitreserve is available worldwide except in the Central African Republic, Cuba, Iran, Libya, North Korea, Somalia, Sudan and Syria. The company unfortunately does not yet have the necessary money transmitter licenses to operate in these US states: Alabama, Delaware, Florida, Georgia, Hawaii, Idaho, Kentucky, Ohio, Tennessee, Virginia, Washington, Wisconsin and Wyoming (hurry it up please.)

Please post your experiences with Bitreserve to help the community decide if this startup has legs and is worth joining or just deserves a pass but kudos for the effort.

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[xeryan]

How it works in few words

You convert your bitcoin to a fiat currency/resource (like gold or silver) and when you want, you convert back your bitcoin; in this way, the btc volatility is reduced, due to the more stable market (hmm don't trust on this).

The service earns money making money reserve, using your money in "zero-risk" investiments.

[lemipawa]

This seems like a standard bank, except instead of use wire transfers and other methods that banks use to transfer money, they just do it through bitcoin. The claim of zero fees is a little misleading, since non-verified members must pay fees for currency conversion. I don't quite understand how they plan on making money though if most people are verified.

[goosoodude]

Last time I checked bitreserve was bitcoin in n' out only. How's that a replacement to a bank? Has this changed since recently?

[Ayle56]

....

The service earns money making money reserve, using your money in "zero-risk" investiments.

Exactly what does  "zero-risk" investments mean?

What do they invest customer's money into, and what makes it 100% zero risk? Even money in a bank account isn't 100% safe. If you put your money in a bank and earn interest on it you only get a small return, and if the bank goes bankrupt you might lose. A bank's unlikely to go bankrupt but not zero risk for customers, so what is?

[johnyj]

I'm registered on their site very early but still have not seen any major breakthrough in services. They convert your coin immediately to fiat thus you are safe from the volatility of bitcoin (and lose the potential gain too).  If I would like to reduce the risk of bitcoin holdings, I can simply reduce the exposure on bitcoin, it is unclear what their service can provide

[BitcoinNewsMagazine]

I'm registered on their site very early but still have not seen any major breakthrough in services. They convert your coin immediately to fiat thus you are safe from the volatility of bitcoin (and lose the potential gain too).  If I would like to reduce the risk of bitcoin holdings, I can simply reduce the exposure on bitcoin, it is unclear what their service can provide

Have you converted any of your bitcoin to gold using the Gold Card? They also offer serveral useful apps to users like Bitwage and EasyMoney.

[anderson00673]

I am not really sure what the point of this service is.  One of the main attractions of bitcoin (for me) is that I can use it and not need a bank.  I can get a trezor or ledger and send all of my transactions from a pretty secure device, where ever I want, quickly, and semi- anonymously.  I fail to see how this service augments bitcoins.  Maybe it adds a layer of convenience for businesses, especially businesses in california that want to accept bitcoins, but not hold them because of the regulations there.

[BitcoinNewsMagazine]

I am not really sure what the point of this service is.  One of the main attractions of bitcoin (for me) is that I can use it and not need a bank.  I can get a trezor or ledger and send all of my transactions from a pretty secure device, where ever I want, quickly, and semi- anonymously.  I fail to see how this service augments bitcoins.  Maybe it adds a layer of convenience for businesses, especially businesses in california that want to accept bitcoins, but not hold them because of the regulations there.

You have the ability to hold your bitcoin in any one of eight currencies or gold, silver, platinum or palladium. Bitreserve Connect is an API that makes is easy for employers to pay employees across state borders. Check out the other apps that are available. While Bitreserve is dependent on bitcoin now, Halsey Minor believes he can create a system where Bitcoin is just one of many points of access to Bitreserve. It will be interesting to follow the progress. He has already assembled an impressive team including William Dennings formerly of Nike and Anthony Watson from Barclays.

[Kprawn]

Ok, so you buy into a more stable commodity, to secure the value of your money? {To protect it from volatility}

1. You invest in a centralized service. {They can run with your assets}
2. Your investment is based on a assumption that it would be availlable, if and when it's requested. {Let's say a war break out... will they give you your % of the silver / gold etc.. you bought?} I doubt it.. it's only on paper.

Look at stocks and shares... When you buy it, you never receive physical proof that you acctually have it.. It's a number in a database. These things are so complex.. if you think of it... you will have many sleepless nights.

Yes, Bitcoin is volatile, but it's decentralized and you have direct access to the coins you own. {Private keys} There is no 3rd party to trust... 

[Amph]

how you can avoid volatility if you lose your number of bitcoin, if before you have exchanged them to fiat they were at higher price and than they fall, it look like bullshit claim as usual, volatily cannot be avoided until fully adoption is complete

also the point of bitcoin for me is to get rid of fiat, there is no point in bitcoin if i need to convert it all the time

they should start focusing on service that make it as easy as possible to recieve bitcoin payment for everyone in the world

the only thing thatshould be done right now, is helping global adoption to succeed, so even a small business man like  afruit vendor near your house, can accept bitcoin

[gadman2]

Can bitserve offer competitive rates on cds or loans for mortgage or auto? Probably won't replace my bank anytime soon.

[trafficolaa]

It is not looking totally replace of banking system at the moment it look like a normal exchange who is offering it services to exchange bitcoin into fiat, i think in future they will improve their service and make it more effective and more user friendly, i am also interested to take benefit such i am taking from my bank like credit card and some loans.

[hua_hui]

At the moment bitcoiners would rather keep their bitcoin holding in their private bitcion wallet for the security reasons. Besides that, the availability, reliability, accountability of the provided service by bitcoin banks cannot compete with traditional banks.

[dollarneed]

i think that service is good for online shoping,but now i preffer to save my bitcoin on wallet and converted it to the fiat as soon as posible so i can handle the volatile except if i belive the rate its gonna up i wanna hold it for a moment,actually i dont like to use third side servive because bitcoin is simple and no intervention from third side that gonna deducated fee from our money

[Snorek]

Can bitserve offer competitive rates on cds or loans for mortgage or auto? Probably won't replace my bank anytime soon.

If in the future bitcoin become so popular and mainstream that it will be possible to create, maintain and earn from bitcoin banks that mean we failed as a revolution. I hope it won't happen because bank=thievery.

[BitcoinNewsMagazine]

Bitreserve Connect was announced this week comprised of an API and four consumer apps:

• Bitwage - an international wage and payment system
• LibertyX - lets you convert cash to bitcoin at local stores and send to Bitreserve or your own bitcoin wallet
• EasyMoney - send money to anyone, anywhere for free
• Changemoney.org - lets you visualize the Bitreserve network in realtime

Jonathan Chester, COO of Bitwage mentioned:

Sending money across borders is a nightmare. Paying employees in different countries means fees for the employer and the employee, plus it adds uncertainty of when wire transfers will actually come through based on differing banking systems around the world. Our integration with Bitreserve Connect is going to fundamentally change the game for people that don't have access to basic banking systems, or are getting penalized in fees.

Bitwage can now serve employees and contractors in countries that are hard or near impossible to reach. Plus, we’ve added transparency, massive cost and time savings for both our employer and employee network around the world, and can now pay anyone in the world in one fell swoop. It’s an incredibly powerful thing and will change a lot of our customers’ lives for the better.

[BitcoinNewsMagazine]

keymaster at GetHashing reports that GetHashing is using Bitreserve already to hold reserves for their mining operation: