Bitreserve’s aims are lofty. They seek to translate Bitcoin seamlessly to USD and other currencies for customers. Founded and headed by the massively successful Halsey Minor, who founded CNET in the earliest days of the world wide web, Bitreserve has helped the overall market by publishing APIs which make it easier for developers to access Bitcoin price information.
Also read: Bitreserve Merges Bitcoin and Gold
Bitreserve’s BitGold, which allows people to exchange Bitcoin for certificates belonging to physical gold, sparked confusion because Nick Szabo proclaimed BitGold in 2005 and renewed the idea in 2008. Szabo’s BitGold was outlined as such:
… based on computing a string of bits from a string of challenge bits, using functions called variously “client puzzle function,” “proof of work function,” or “secure benchmark function.”. The resulting string of bits is the proof of work. Where a one-way function is prohibitively difficult to compute backwards, a secure benchmark function ideally comes with a specific cost, measured in compute cycles, to compute backwards.
Thus, it clearly is a very different idea than exchanging Bitcoin for gold certificates. Bitreserve claims similar trademarks over bitsilver, bitpalladium, bitpeso, bitelectrum, and a few others.
One thing that sets Bitreserve apart from other Bitcoin companies and, indeed, other companies generally, is its regular publishing of a proof of solvency. This is proof for investors and users that at no time is the company operating on a fractional reserve, and Halsey Minor encourages others in the Bitcoin space to do so as well.
Bitreserve is one of many companies in the field of processing Bitcoin transactions for businesses and individuals with the aim of removing the complexity and mitigating some of the risk. Many businesses do not want to worry that by the end of the day the Bitcoin they have taken in will be worth less than the actual value of the goods or services they have sold, and this is why companies like Coinbase have taken off in the first place.
What Bitreserve offers is an innovative leadership and a welcoming to development. Utilizing the Blockchain for purposes other than strictly recording the transactions within blocks and making it so that regular people, who have a lot in terms of assets to offer, can understand what’s going on is going a long way to improving the outlook for all of us. Offering the ability to move from the volatility of Bitcoin into the relative stability of gold and other precious metals mixes a new opportunity an old idea: when everything else goes down, gold will go up.
Bitreserve seems to be attracting the funding it wants to expand and build out its business. Time will tell if it stays on top of things and continues to innovate as such.
Image courtesy of Pixabay and Shutterstock.
Last modified: December 11, 2014 10:14 UTC