CNET Founder Creates New Venture That Addresses Bitcoin Volatility
- CNET founder creates Bitreserve
- Aims to address bitcoin volatility
- Will keep bitcoin backed by traditional currency
Halsey Minor, founder of CNET, today announced the launch of a new bitcoin venture called Bitreserve, a platform that aims to provide real-time transparency and address bitcoin volatility, transaction traceability, and proof of solvency.
The idea: Allow members of the service to hold bitcoin denominated as real-world currency.
“Bitcoin is a remarkable innovation, created and supported by lots of very smart people,” said Minor, who also happens to be the second largest shareholder in salesforce.com. “Bitreserve is built on top of the bitcoin network, allowing members to convert bitcoin into money they know, trust, and understand.”
While Minor will serve as Bitreserve’s Executive Chairman, Tim Parsa (who’s had significant experience in the media an telecommunications industry) will serve as the start-up’s chief executive officer.
“We offer our Members all the advantages of bitcoin — fast, irrevocable, low-cost, peer-to-peer payments — but without bitcoin’s value-destroying volatility,” Parsa said in a statement.
Members of the Bitreserve system are able to hold bitcoin denominated in US dollars, euros, yuan, yen, and pound sterling. According to Bitreserve, these so-called bitcurrencies will be backed by a full reserve of traditional currency.
“Our system is designed for a post-trust world,” Minor adds. “Just like the bitcoin network, everything is out in the open, traceable, and continuously updated.”
Company obligations to members are published in real-time and can be traced right back to their origin on the block chain. Bitreserve says they will keep an update-to-date status of obligations to members and of assets they hold in reserve.
“People work hard for their money; they have a right to know what’s being done with it,” Parsa said. “What you do with your money is your business. What we do with your money is everyone’s business.”
Based in Charleston, South Carolina (also with offices in San Francisco, Shanghai, and Braga, Portugal), Bitreserve says they will be setting aside five percent of profits to support economic opportunity and freedom globally via their Bitreserve Foundation.
The service is currency in invitation-only private beta. For more information, visit www.bitreserve.org.