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Author Topic: Does CoinJar have an excellent solution for volatility?  (Read 430 times)
cafucafucafu (OP)
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February 12, 2015, 08:08:04 PM
 #1

Volatility keeps some people away from btc even though they (e.g. the unbanked) would really benefit from it. 

CoinJar has some sort of solution: http://www.zdnet.com/article/coinjar-pegs-bitcoin-to-standard-currencies/

Quote
Australian bitcoin company Coinjar has found a way to allay some of its customers' fears over the fluctuating value of the digital currency, introducing a new hedged accounts offering aimed at locking in the fiat money price of bitcoin.

Hedged accounts allow users to peg the price of bitcoin against a number of currency options, including Australian dollars, US dollars, British pounds, and euros.

While the new offering won't actually help alleviate fluctuations in the crypto-currency's value, it will allow users who buy a bitcoin at, say, its current $223.24 value -- at the time of writing -- and retain precisely AU$223.24 worth of bitcoin in their hedged account, no matter how bitcoin value may fluctuate.

If bitcoin value soars to AU$446.48, the account holder would own 0.5 bitcoin, worth $223.24, whereas if the bitcoin value drops to $111.62, the bitcoin owner would possess 2 bitcoin.

So we need more of this?

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February 12, 2015, 08:19:35 PM
 #2

Believe there are services that exist that already take care of this, like Coinapult Locks:

https://coinapult.com/locks/info

Also, Hedgy I think has a similar system as well:

https://hedgy.co/

But yes, having another service like CoinJar helps the ecosystem overall, and attracts investors that don't want to deal with something as volatile as Bitcoin pricing.

CharityAuction
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ColdScam
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February 12, 2015, 08:51:46 PM
 #3

It is great to people who wants to use bitcoin and don't want to risk the money ( and they don't care about the increase of value)
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