Companies like Circle and Coinbase has the right approach to solve Bitcoin’s #1 problem - Volatility. Sure, in the long run Bitcoin will likely prove to be a longterm store of value but in the meantime the average Joe will not touch it b/c they don’t want the risk of it going down. Circle’s USD/Bitcoin wallet makes it very compelling use case for the average person.
Volatility is a major issue even for the die hards. I bought my first Bitcoin at $1000 and bought it all the way down to $200 with a cost average at $385. I held since 2013. What do you mean by Bitcoin’s Volatility isn’t any issue? I am down 45% and I invested/traded into stocks my whole life. How would someone who knows nothing about finance feel about buying Bitcoin? Its pretty risky even for us die hards. When we pair the dollar with Bitcoin it finally makes it useful. Otherwise its a long time before any Joe would use it.
New feature outlined
The company’s new account features mean users can hold their funds in both bitcoin and USD.
Customers who choose to hold their funds in dollars rather than bitcoin can still make payments to people or merchants who accept bitcoin. At the time of payment, Circle will instantly convert funds from dollars into bitcoin.
Also, customers can accept bitcoin payments and Circle will convert the funds instantly into dollars in their Circle accounts, if they wish. Those who prefer to keep their funds in bitcoin can do so, CEO Jeremy Allaire explained in a new interview.
“We’re putting forward this hybrid fiat-digital currency model, which gives users the benefits of digital currency – instant settlements, global interoperability, no fees and high levels of security – but without having to use a new currency,” Allaire said.
“This hybrid model allows customers to have all the benefits of digital currency, without the risks.”