The man who helped Overstock.com avoid Bitcoin risks

FredErhsam14 Jan 2014 / Upstart Business Journal – One of the biggest concerns among businesses reluctant to start accepting Bitcoin is the currency’s dramatic fluctuations. Up to $1,200 one week, down to $650 the next. So when Overstock.com surprised the world late last week and announced that it was now accepting Bitcoin, we weren’t surprised to see that they were doing business with Fred Ehrsam, the cofounder of Coinbase.

“As a merchant, you never need to hold Bitcoin or expose yourself to any exchange rate risk if you don’t want to,” Ehrsam told Upstart Business Journal in an email Friday.

Ehrsam’s San Francisco-based company offers merchants what he calls an “instant exchange feature” that calculates an exchange rate for goods in dollars, converts the Bitcoin for their client, and then transmits only the dollars, less a small percentage.

“This helps ensure that merchants know the exact dollar figure of every bitcoin purchase, and Coinbase assumes any risk,” he wrote.

Prior to cofounding Coinbase, Ehrsam worked as a Goldman Sachs foreign exchange trader and at the age of 16 led the top-ranked team for the video game “America’s Army” in both the United States and Europe…… Read more

http://upstart.bizjournals.com/entrepreneurs/hot-shots/2014/01/13/fred-ehrsam-of-coinbase-helps-overstock.html

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