Bitcoin has been quite volatile digital currency and this has been proven by the fact itself that whereas it touched the highest point a year and half ago at $1200 it is trading around $250 now. In such extreme volatile market, customers tend to worry about the exchange rate they will get when they are selling or buying Bitcoin.
However, now Coinbase users can send Bitcoin payments without being exposed to the digital currency’s volatility. According to the announcement the users at the company with a fiat wallet (must be verified in order to get it) will be allowed to use Bitcoin’s global payment network without being exposed to the price of the digital currency.
Nonetheless, Coinbase’s Instant Exchange deducts an equal amount to the Bitcoin the user wants to send, effectively exchanging the two. Interestingly, the service is similar to one offered by Coinbase to Bitcoin-accepting merchants. Thus, there is nothing that is new for the company; however, this is a new feature for end users.
The company explains that as of today, Instant Exchange is available for users with a USD, EUR, or GBP wallet. According to the company after typing the Bitcoin address and choosing a fiat wallet, users can hit the “Instant Exchange” button, and then send. Additionally, a Bitcoin amount equal to the fiat selected will be sent instantly.
At the same time the users will be able to do this without exposing to the Bitcoin’s notorious volatility. Nonetheless, the startup’s standard conversion fee of 15 cents will be deducted from each conversion, but sending payments to other Coinbase users is free. The Bitcoin is deducted from the user’s fiat wallet and not his or her digital currency wallet.
Coinbase is not the First to Offer Such Services, Coinapult Was the First
Therefore, it can also serve as a way for users to instantly sell their Bitcoin. The company explains that volatility is a problem all too well-known in Bitcoin and is a chief complaint among people interested in using the technology’s payment network. However, with the latest feature wherein customers will get a set value is going to help a lot of end users.
However, Coinbase is not the first that is offering this kind of service s Latin American Bitcoin startup Coinapult was first to launch such a service. Interestingly enough now many Bitcoin businesses offer it that includes names like Bitreserve, which designed its whole service around the concept.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org