Australian Bitcoin service company CoinJar recently came up with a method to battle unannounced Bitcoin fluctuations.
According to the company’s latest blog post, they are now offering their customers the option to store their Bitcoin in the form of fiat money — hedged accounts. It simply means that users’ B
itcoin holdings will now be measured in the selected form of fiat currency (USD, AUD, GBP or EUR). For instance, if you store $USD220 worth of Bitcoin on a CoinJar account, the USD value of your holdings will be the same even if the Bitcoin value drops by half.
“CoinJar Hedged Accounts are an effective way to manage the value of your bitcoin in a familiar currency,” the company’s blog elaborates. “Once you’ve transferred bitcoin into a Hedged Account, the amount of bitcoin will fluctuate depending on current prices, however the value will always remain set to that account’s currency.”
The Cons of CoinJar Hedging Account
By looking at the current bearish trend of the Bitcoin market, a lot of traders could indeed use a CoinJar Hedged Account to protect their investment. However, the same logic is also applied if Bitcoin gains value. Thus, your $USD220 investment will remain to be the same even if Bitcoin value reaches, say, $USD300.
This method however comes handy for small businesses or individuals that wish to hold their savings in Bitcoin, probably to use it as a method of invoice transactions (still cheaper than bank transactions). CoinJar charges no fee for transferring Bitcoin to hedged accounts. It though cuts a decent 1% commission if one wants to transfer money from a hedged account to a cash account, or vice versa.
Do share your opinions about this new service.
Crypto Currency Swot 
cohagen 
Neal Palmquist 
Nealson Idiotquist 
risky concept.
When a trusted party hold value, it’s recipe for disaster. Don’t go there.
You’d better hedge to fiat immediately for your client. If your merchant receive an amount of USD in Bitcoin, then hedge it immediately back to USD for your merchant. In this case customers anywhere in the world can pay with Bitcoin, while the merchant receive USD (or Euro, Yen, Ruble, Peso, Franc, Gulden, etc)
You hold no value for your merchant, you help customers world wide to connect with your merchant and you earn a lot for bridging this opportunity. Risk factor reduced to near 0 for all stakeholders.
Epic fail! Not possible with value eroding.
Exactly. Who would know if they never even buy any bitcoins? Do the customers get their wallet addresses shown to them?
Alot of people have to lose alot of real money to keep this promise to people who are holding crashing bitcoins.
This is a scam. They will only pretend they bought bitcoins with your money from now until the crash hits bottom. They are establishing a phony baloney reputation so they can confiscate all gains after the crash hits bottom and shows recovery. They are liars. They do not buy bitcoins. What they want is a big pile of money to buy at the bottom and take all the profits when it recovers.
No charge to sell your bitcoins back to them… because they never used your money to buy any bitcoins in the first place, idiots!
Just keep your dollars if you are scared of bitcoin crashing. And when it hits bottom, use that cash to buy bitcoin and resell it to the same people who already lost their money the first time. Don’t let these guys take your profits. Who needs that?
Kinda like the recent foolishness in hong kong a couple days back or the 99.9 dice btc gambling site run by known scammer noah.
Kinda like Enron, Freddie Mac, Lehman Bros. or Mr. Madoff to name a few. It’s easy to compare fraud to fraud, but what we have here is baseless libel by my good friend and is, therefore, nothing like the scandals you mention.
It has all the ear marks of a hustle. Day after day btc scam after scam, btc has a much smaller market cap than fiat so really it’s more serious for btc by percentage. I keep asking and not a single cypherpunk can answer this- if the blockchain records all things crypto then why haven’t any of staggering amount of lost/stolen btc ever been found/recovered?
Are assumptions all that’s necessary to pass a judgement? Calling for caution and pointing out suspicion is not a problem. What is a problem is the kind of disregard for legitimate efforts in which slanted bias overcomes the need for evidence and making defamatory statements like, “This is a scam. … They are establishing a phony baloney reputation … They are liars….” It may be a hustle or it may not, for all I know, but there is no place for hysterical agitation that can ruin legit business and innocent lives.
If it looks like a duck and quacks like a duck….
I didn’t know we were talking about ducks ..oh well, grandpa’s old adage for determining ducks from various other things is as infallible of a method as it ever was.
Ok dufus it looks an obvious scam then it an obvious scam. Clear enough for you trolling dipstick!
That’s a compelling and rational conviction when you haven’t the evidence to support claims, my boy. One that I understand seemed to work well in late 17th century Massachusetts which would make sense then that you’d have learned that special strategy during your tenure at Harvard.
Evidence points to the fact your a moron loud and undisputably clear. Your nothing but a snarky little troll. I graduated Yale , not weak sauce Harvard.
I had no idea Yale’s English curriculum standards had fallen so discouragingly low. In any case, what is clear is your contempt for evidence, instead preferring the reassuring bubble of your imagination. Tell me, in that splendid imagination of yours, am I one of those cute trolls with the brightly colored, unkempt hair?
Had to bring it down to your level troll boy.
What evidence? Zilch. Just internet chatter from liberal geeks does not a sold point or proof make. You can’t make a promise on something that bounces like a dead cat. Look at that grifter Josh Garza for an example, $20 set in stone buy back my ass!
I don’t know where you’re getting your information, my son, but everything I have said can be corroborated in pretty standard places. Even after your hot air, you’ve still failed to tell me why this markedly absurd notion that “NASA’s sha 256 coded digital money being the first conceived” is of any relevance at all.
Nasa’s sha-256 blockchain dip stick your reading skills are terrible.
Ah, it’s all clear now. Thanks! So why does NASA’s implementation of blockchain tech prior to bitcoin’s conception matter again?
I told you long ago satoshi didn’t code jack sqaut just cut and pasted decades old code.
Bitcoin, like any digital asset, faces an entirely new level of security risks that we’ve never addressed before in regard to stores of wealth and currencies. The physical nature of traditional wealth meant that threats had to overcome the potential for physical altercation and protecting their identity. The risk with bitcoin is the disconnect between digital addresses and real world identities – making enforcement and recovery of stolen funds extremely difficult. This does not, however, strip the practical utilitarian qualities of bitcoin. The risks to my asset whether physical or digital remains the same, but only the manner in which I use to protect that wealth is different. Cash is at risk every time I walk out of my house with some in my pocket. Bitcoin is at risk for only as long as I leave it unencrypted and/or not backed up.
Malarkey it has decades old well known cypher security flaws and brain wave satoshi left them in when he cut and pasted nasa’s sha 256 code( you know the blockchain that’s been around since the 60’s along with the internet as it used to be known as darpanet!).
The NSA, not NASA, developed the sha hash operation in the 90s beginning with sha0. Sha256, which Bitcoin is built upon, is a function of the Sha2 cryptographic hash protocol, developed, again by the NSA, in the early 2000s. Security flaws were discovered with the Sha1 function, and as such, most systems, including those at the federal level, have or are in the process of transitioning to Sha2 since those vulnerabilities with Sha1 are not present.
The “blockchain” you imagine NASA developing in the 60s wasn’t a blockchain at all, but a standardized conceptual rule-set, published by the CCSDS. The CCSDS is a consortium of agencies, that includes NASA among numerous others, that didn’t come into existence until the early 80s when it was determined there was a need for standards in the transmission, management and preservation of data as it particularly related to the space program. That standard rule-set they outlay that relates only conceptually to the blockchain is called the Open Archival Information System – and merely describes a framework in which a group of participants agree to archive information and make it available to a specific and pre-determined community.
TL;DR – The NSA created the Sha algorithm, NASA jointly designed a conceptual framework of rules for a participatory data preservation system, the decentralized blockchain is not synonomous with the Sha cryptographic hash function, and your dates are incorrect.
Dead wrong nasa used it since the 60’s, easily provable if you do a little research for cataloging there space photos. Nsa first developed dig money, even a white paper to prove it decades before satoshi pulled his cut and paste bs of the code.
Might you be referring to the “How to Make a Mint;” paper written in the mid-90s? The NSA did not by any stretch of the imagination develop digital money, but only outlined how a digital currency may be formiddable – thus, making your statement about Satoshi copy/pasting code from that source complete nonsense. Also, there’s nothing to suggest the NSA had anything original anyway and certainly weren’t the first to come up with the idea as much of it can be cited to earlier work by Chaum who wrote about digital cash in the early 80s. What the NSA proposed is conceptually relatable, even technically semi-relative, but is unquestionably not at all bitcoin.
Your mention of NASA using “blockchain” technology to catalog their space photos seems highly suspect. If your claim is so easily proven, please provide a source. All that I am able to find is that in the 60s, the NSSDC kept the data on 7 and 9-track tape. The only thing that could reasonably give your statement any credence would be their transition to the use of “electronic networks” they didn’t employ until the mid-80s.
For your sake, why don’t we go ahead and say all of your misunderstandings and half-assed research is correct; NASA used blockchain technology and the NSA first created digital money …so what? What is the significance?
No what I’m talking about came about in 1986, boogles me you can troll like a gold medalist but you can’t due even do the most basic research or fact checking.
Oh good, because digital cash was conceived by David Chaum in 1983. It’s your turn to “due even do” some basic research – or cite the sources I’ve asked for. We both know it won’t win you an already lost argument, but I’m still interested nonetheless.
NSA 1986 DIGI MONEY DUFUS NOT DAVIES GO NO WHERE PROJECT. You haven’t won squat and I haven’t lost a damn thing what a wild fantasy world you live in I must say….
Well, I see you know the golden rule; saying something three times or spelling it out in all caps makes it fact, so I secede to your nonsensical ways. What Yale lacks in remedial English, more than makes up for in creative debating no doubt.
ps – anytime you ever feel like substantiating a single imaginary claim of yours, please do!
The golden rule is your an idiot know nothing troll.
And you’re adorable!
Your mommas calling you for a diaper change.
Well, well – that’s libel, brotha! Not that I’m at all surprised to see it coming from you.
The best way to protect yourself from crashing bitcoins is to use USD because it is already pegged to the value of itself.
Where does all this money come from that is used to buy even more crashing bitcoins? I think somebody bought too many and is desperate to find a business model that will work with the ponzi scheme. Because these claims are simply not real and not even possible.
“Where does all this money come from that is used to buy even more crashing bitcoins?”
Well you see, in 1913 under President Woodrow Wilson…