An Open Intelligence Alert
BITCOIN VALUE GUARANTEE –
*New price locking service*
From the sources, it is not clear how Coinapult makes money from the service. Conversely, would it be possible for them to lose money if say the Bitcoin price changes unexpectedly for an extended period of time? However, if the Coinapult’s business model is robust, it is a significant step towards Bitcoin becoming a universal medium of exchange in addition to an asset used for speculation.
“Our thesis is that 99% of normal people aren’t currency speculators, and won’t deal with a service that exposes them to volatility in daily transactions,” said Gabe Sukenik, executive director at Coinapult. “We created Locks as a bridge to overcome this barrier to entry, and allow users to exist in the Bitcoin ecosystem without have to worry about the price.”
If a user locks $1,000 in bitcoins, the user will still have $1,000 in bitcoins no matter how much the price fluctuates over time. Though this reduces the risk when bitcoins’ price plummets, it also means that if the price increases, the consumer won’t receive the benefits of that deflation.
The company predicts its Locks feature will be especially useful for savings, employee wages and rent payments. Users can lock bitcoin balances to gold, silver and a range of national currencies.