C oinapult says it has solved one of the most common complaints among detractors of bitcoin: that the currency fluctuates too rapidly to work as a reliable store of value.
Beginning today, the Panama City-based company will offer what it calls "Locks," technology designed to stabilize bitcoins by locking their value to other assets, so long as you're not in the United States.
Though the technology doesn't actually stabilize the price of bitcoin itself, through a clever twist of technology, it removes some of the risk (and some of the benefits) for customers who want to buy and spend the currency.
"In the background we are hedging ourselves," Coinapult chief operating officer Justin Blincoe told me in a phone interview. "When a user enters into a Lock we've built a Wall Street grade hedging engine to protect ourselves."
Balances stored through Coinapult's services can be tied to a range of fiat currencies or other assets. So, for example, a customer who stores $1,000 worth of bitcoin with Coinapult and locks the price to gold will always have the same value stored relative to gold. Click here to learn more.