Cointrust CEO says his technology can take Bitcoin mainstream

The stealth-mode startup by serial entrepreneur Steve Kirsch will make an initial product launch later this year

By , IDG News Service |  IT Management

In fact, Kirsch says he knows of at least one bank that will start offering Bitcoin this year. He declined to name the institution but said it would be a "second-tier" entity and not a juggernaut along the lines of Bank of America or Wells Fargo.

A flood of capital will enter the Bitcoin market once banks get involved and regulators get on board, stabilizing the price, Kirsch said.

Institutions, like consumers, will take to Bitcoin because it can provide "instant, secure payments," Kirsch said. "Everybody likes fast."

Bitcoin exchanges will subsequently suffer, Kirsch predicted. "People will use them less and less," he said. "Exchanges we have now are very dangerous places to hold your Bitcoin. The security is just not there. You have no assurance other than 'trust me' that your Bitcoin will be safe."

While nothing is stopping rivals from pursuing the same ideas as Cointrust, the company's intellectual property and the fact that its work is already well under development provides an edge, Kirsch said. "It's much easier for people to use the technology that is way ahead of everybody else's."

He sees a bright future for Bitcoin in general.

"There are things that may slow it down and make it a bumpy road," Kirsch said. "But as far as I know and what anyone knows, there is nothing that could reverse the momentum of Bitcoin."

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

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