Coinpit is holding poignant and innovative stairs to offer a safer choice to Bitcoin’s custodial futures exchanges. Thanks to Bitcoin’s multi-signature technology, users that store bitcoins on Coinpit sojourn in finish control of their funds. Even if a sell is hacked, goes bankrupt, or disappears completely, business can in many cases still collect their money.
Speaking to Bitcoin Magazine, Coinpit Founder and CEO Bharath Rao explained because he believes trustless exchanges are an critical subsequent step for a Bitcoin industry.
“Why is a bitcoin value 600 times a universe haven currency? Because there was an unmet craving for a trustless currency. We wish to move a same properties from a banking covering into financial systems. A financial complement with a properties of Bitcoin would discharge many financial crises,” Rao said.
Coinpit is no unchanging exchange, where users sell bitcoin for fiat banking and back. It’s a bitcoin-futures exchange, where users trade supposed “quanto USD/BTC contracts.” In plain English, this means that Coinpit business “bet” opposite any other, permitting them to assume on bitcoin cost movements.
“The bitcoin prices we use are subsequent from a tip USD/BTC exchanges,” explained Rao, himself a Wall Street veteran. “And the index is arbitrable. This means