Self-made millionaire and Bitcoin entrepreneur, Erik Finman, plans on bringing bitcoin to the masses with a new platform called CoinBits. The startup focuses on allowing users to passively invest in bitcoin which in turn will make it easier for the average folk to make investments in cryptocurrencies.
Erik Finman is famous for becoming a millionaire at the age of 18 through his investments in bitcoin. He started investing in bitcoin since he was 12 years old and it all paid off by the age of 18. Finman dropped out of high school and never went to college as he found his calling in the crypto market. He currently owns 403 bitcoins, which at the current rate of $9,250 per coin puts his value at $3.7 million. It’s important to consider that he also has made smaller investments in other cryptocurrencies including ethereum.
“A huge factor preventing bitcoin from going into a bull run is its difficulty to buy. It’s not uncommon to hear about someone going to an exchange and never completing the transaction after experiencing just some of the mandatory steps,” Finman told business news website, MarketWatch.
Finman continued that the goal of the application is not only to make it easily accessible but to also make crypto and blockchain technology more tangible and tactile. The idea will democratize the access to cryptocurrencies by allowing everyday people to make small investments through roundups of transactions made with credit and debit cards.
CoinBits will automatically roundup credit and debit card purchases to the nearest dollar and invest the difference in bitcoin. For example, if you purchase french fries at the price of $1.75, the remaining $0.25 will be invested in bitcoin. The users will play a rather passive role in the process, however, they’ll have the chance to match their financial risk profiles.
The users can choose to make one time investments ranging from $10 to $100, depending on their financial standing. 98% of the bitcoins will be kept in cold storage, offline, in order to make them less vulnerable to data breaches. Finman puts the safety and protection of the user base at utmost importance.
Finman also told that his platform will be superior to Coinbase and Robinhood as it will be much more user-friendly. The initial investment into CoinBits is $100,000, with Finman expecting to attract around million users over the coming year.
“I really think a million users within a year is realistic,” Finman continues in his interview. He doesn’t shy away from the similarity between CoinBits and other micro-investment apps, Finman even said he hopes that CoinBits will become the “Acorns of bitcoin.”
The young millionaire admitted that many before him have failed to simplify bitcoin and if he succeeds he will be the first to achieve it. Whether CoinBits will outperform competitors such as Coinbase and Robinhood is still questionable due to the fractional nature of bitcoin investments and fluctuation in value, yet Finman’s optimism and history of success leave investors with high hopes.