Australia: Coinjar offers Bitcoin hedged accounts

Coinjar, a major Australian online wallet provider, has announced a new service intended to protect users against Bitcoin volatility. Named “Coinjar Hedged Accounts,” the service allows people to hold any amount of bitcoins with a fixed value in terms of selected fiat currencies (GBP, AUD, EUR, USD).

“Once you’ve transferred bitcoins into a Hedged Account, the amount of bitcoins will fluctuate depending on current prices, however the value will always remain set to that account’s currency.” explained the company. For instance, if Alice holds 1 Bitcoin currently worth $200 and decides to hedge it against the dollar (USD), her Bitcoin account will always be worth $200. If, in 6 months, 1 BTC = $400, Alice will hold 0.5 BTC; if 1 BTC = $100, she will hold 2 BTC.

The service should therefore appeal to people looking for security and stability, out of any form of speculation, as explained by Coinjar: “While having your funds stored in a Hedged Account can protect their value if the bitcoin price falls, you may miss out on potential gains should bitcoin’s price rise.”

Claiming 37,000 customers and $50 million processed in the past 12 months, Coinjar can only process Australian dollar bank withdrawals and deposits.