

The end of Bitcoin volatility - Bitreserve

Hi HN!<p>I&#x27;ve been reading and learning from all of you for the past three years. I finally have something to share, a project I&#x27;ve been leading for the past year.<p>We address btc volatility by allowing our members to convert bitcoin to the bit-form of money they use every day--bitdollars, biteuros, bityuan, etc.<p>You can sign up for an invite to our Beta at www.bitreserve.org<p>Here&#x27;s a story about it: http:&#x2F;&#x2F;bitcoinowl.com&#x2F;new-company-bitreserve-protects-against-bitcoin-price-volatility<p>We announce today and I wanted to let you all know about it and thank you for your inspiring enthusiasm, creativity, and hacking chops.<p>You have an amazing community in HN and I hope it continues thriving for a long time.<p>Regards,<p>Tim Parsa
CEO
Bitreserve.Org
www.bitreserve.org
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byrnereese
My name is Byrne Reese, and I am the VP of Product for Bitreserve. Thank you
for your questions. I first wanted to shed some light on how we manage our
reserve. When a member of Bitreserve converts bitcoin to fiat, we adjust the
assets we hold in our reserve to match. So if our members hold 100 bitcoin,
and $1000, then our Reserve will also hold 100 bitcoin and $1000. In this way
we manage a full reserve.

We believe that what our Members do with their money is their business, but
what _we_ do with their money is everyone's business. So just like the
blockchain, the public can monitor in real-time all the transactions taking
place across our network via our Reserve Chain, and all of the subsequent
adjustments we make to our reserve on our public ledger. Then to build trust
in these resources, every quarter a big-four auditor will publicly verify that
the assets and liabilities we claim in our ledger are accurate.

Right now we are purely bitcoin in and bitcoin out. In that way all value that
flows into and out of our system is discoverable and provable on the block
chain. You will be able to track every transaction back to the original entry
of value into our system confirmed by the block chain.

Thanks again for your comment and don't hesitate to contact
support@bitreserve.org with any further questions, or feel free to continue
the conversation here.

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celticninja
Signed up to the beta and read the article but there is no info on how you
will beat the volatility. The simplistic view is that you convert btc to fiat
but hold the btc yourself. When price goes down you lose money, when price
goes up you make money. I just don't see too many people wanting to protect
themselves from drops at the expense of any gains. The article even says there
has been a long term upward trend so it makes sense for your business if that
holds true. However I expect people will withdraw in times of growth and
redeposit during drops, thus reducing your opportunity for profit. Will there
be restrictions on withdrawals?

As usual though the problem comes down to needing to store my BTC with you, at
that stage I no longer control the BTC and am reliant on your honesty.

Now if you managed to make it work with the Trezor, whereby I control the
private keys even if the coins are stored on your system then I can see it
gaining some traction.

