Armchair investors are backing a new bitcoin start-up that hopes to completely de-risk the cryptocurrency and simplify how it’s spent
Bitreserve, the bitcoin wallet start-up, has raised £6.3m through Crowdcube and US platform Venovate as armchair investors flock to fund a model that simplifies the saving and spending of bitcoin.
Bitreserve allows users to hold digital coins in real-world money but spend it as a cryptocurrency, without incurring fees.
Some 136 armchair investors now own just over 10pc of the company and the crowdfunding campaign, which closes today, is currently overfunding. The cash will be used to expand globally and grow the Bitreserve team.
The company is the brainchild of serial tech entrepreneur Halsey Minor, who founded the digital news platform CNET.
He launched the platform last year in a bid to eradicate the volatility associated with bitcoin and cryptocurrency, and give people greater control over their money.
“We believe that the revolution in digital money is real when money is simple and free to use, the financial system is sustainable, and for the first time, people feel that they hold their own money,” said Mr Minor.
“We have published a real-time, verifiable, proof of solvency so that anyone at any time can confirm that their value is backed one-for-one. We believe this radical transparency is the only way necessary to create a more equitable financial system.”
Bitreserve makes money by charging a 0.45pc commission for converting bitcoin into dollars. One of its biggest markets is remittances: immigrants around the world sending money home.
Last year, £15bn-worth of remittances was tranferred from the US to Mexico alone, according to the World Bank.
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To read the bitcoin white paper, visit: https://bitcoin.org/bitcoin.pdf
