Bitcoin is still relatively young and has various problems that must be addressed before it can become a truly mainstream currency, but these issues seem to be getting resolved slowly as time goes by. One of the main problems potential investors have been facing are the large fluctuations in price that Bitcoin is regularly subjected to. The currency is going through some questionable times in its development, and it’s clear that its price is still far from stable.
There seems to be an answer on the horizon though, as CoinJar have recently announced that they might have an answer to this problem. The company is now offering their users the possibility to store their money as fiat money in hedged accounts, which means that the value stored in those accounts will be measured according to the value of some “real” currency like USD or EUR.
That way, according to CoinJar, users will have an effective way of managing the value of their Bitcoin reserves by using an alternative currency that they are already familiar with. Once money has been transferred into a Hedged Account, the value of the account will begin to fluctuate according to the current prices on the market, but only with regards to the currency that the user has chosen.
Potential investors who like the news should be careful though, and keep in mind that this system easily goes both ways. So if the price of Bitcoin suddenly goes up over a short period of time, those who have the majority of their investments in a CoinJar Hedging account will not benefit much from those changes, if at all. Those who’re trading the currency in hopes of profiting from its price fluctuations will obviously not find these accounts a viable option.
But on the other hand, they will be a very attractive choice for newcomers to the Bitcoin scene who still don’t get the hang of the system fully, and want to experiment a little on safer grounds before jumping in more deeply. Having a safety net like the one provided by CoinJar’s new Hedging account option will definitely be of benefit for the overall popularity of the currency.
Now, it would be interesting to watch if Bitcoin starts to enjoy a more positive attitude in the media and online discussion boards, as users will finally have a reason to calm down when talking about the riskiness of investing in Bitcoin. It’s becoming a more and more viable option with every day, and it’s obvious that the community behind the currency is willing to put a lot of effort into developing it even further and helping it grow.