Bitcoin has already proven itself as a fast, cheap way to make online transactions.
For a lot of advocates, there’s an allure in trading and mining Bitcoin simply because it’s a way to make money, helped by the fact the cryptocurrency’s price can fluctuate wildly on a daily basis.
But it’s that uncertainty around exactly how much your Bitcoin is worth that’s making it difficult for mainstream shoppers to accept it as a reliable online currency.
Bitcoin trading platform CoinJar, which in December reincorporated in London from Australia, just announced a way to eliminate that worry for businesses and consumers – hedged accounts.
Announced on stage today at Europe’s biggest financial technology innovation conference, Finovate, Hedged Accounts allow users to peg the price of Bitcoin against the fiat currency of their choice — Australian dollars, US dollars, pounds or the euro. For example, if you hold $400 worth of Bitcoins today, transfer them to a Hedged Account and you can access $400 worth of Bitcoins any time in the future.
Here’s how it works:
It doesn’t costs any extra and you can hold Bitcoin in a Hedged Account for as long as you want. If you’ve got a CoinJar Swipe EFTPOS card, you will also be able to transfer amounts held in your Hedged Accounts to your Swipe account any time to use for purchases.
“While some users enjoy the speculative aspects of Bitcoin, there are others who would like to hold Bitcoin without worrying too much about the volatility,” CoinJar CEO Asher Tan said.
CoinJar hopes the new feature will not only make using the currency more attractive to new users, but give businesses a stable pool for paying employees in Bitcoin, and help charitable and not-for-profit organisations which increasingly use Bitcoin for donations.
Hedged Accounts are available for CoinJar users globally from today. New users can sign up for a standard CoinJar account and add a Hedged Account at www.coinjar.com.