Buying bitcoin is still a cumbersome process, spil Quartz&rsquo,s guide to investing te cryptocurrencies will attest. A fresh app called Dust aims to switch that by automatically investing your spare switch te bitcoin, litecoin, or ethereum.
Here&rsquo,s how Dust works: It connects to your handelsbank account to see your transactions. Then it rounds up each transaction to the nearest dollar&mdash,basically, collecting spare switch. Once about $Ten of switch has bot accumulated, the amount is used to buy bitcoin, litecoin, or ethereum, te proportions set by the user. The app only reads your canap&rsquo,s transaction gegevens, it doesn&rsquo,t have access to the fiat or crypto funds. The cryptocurrencies are acquired through Coinbase, one of the fattest firms ter the business.
Dust’s very first journey everzwijn overseas. Bonjour! pic.twitter.com/cTZRyWEZhv
Dust will work with overheen 9,000 financial institutions te the US, including banks like Wells Fargo, Pursue, and Citi because it uses gegevens from a service called Plaid. Plaid acts spil a bridge inbetween banks and developers who want to build apps on top of transaction and other gegevens. The mobile payments app Venmo, for example, also uses Plaid. The app will also work for customers of Monzo, among the buzziest of a crop of fresh, digital-only, British banks.
The idea of using an app to digitally gather up liberate switch and invest it isn&rsquo,t fresh. The startup Acorns does this for some 850,000 customers ter the US. The concept is powerful because it eliminates the need to think&mdash,or worry&mdash,about the right time to pull the trigger on an investment. It&rsquo,s especially useful for volatile cryptocurrencies, where prices can sway 100% te a week. &ldquo,It&rsquo,s the same thing I recommend to my dad,&rdquo, says Jordan Fish, one of Dust&rsquo,s five co-founders. &ldquo,It will automate [the buying decision] for people who want to get into bitcoin but never know when to buy.&rdquo,
Dust is presently being tested with about 1,000 users, Fish says, with another 20,000 on the waiting list. Those thousands of users won&rsquo,t have long more to wait because the Dust team will commence ramping up its userbase next month, Fish says. Dust has bot slow out of the gates&mdash,another app that does the same function is CoinFlash, for people with US bankgebouw accounts.
How does the project make money? At the ogenblik it&rsquo,s a part-time gig for Fish, who works at Monzo, and his co-founders. Fish says they have no plans to earn revenue from Dust at the ogenblik and the founders are paying the bills themselves. &ldquo,Wij&rsquo,d rather self-fund until wij prove wij have a product people like and use regularly,&rdquo, he says. One possible prototype is simply charging fees, Fish says, which is how Acorn makes money.
There&rsquo,s another possible spanner te the works for Dust. Fish is worried that the product will have to be regulated by the UK Financial Conduct Authority. His team is looking into the legal status. &ldquo,Finding clarity around that stops us from making something cool,&rdquo, he says. &ldquo,Because you don&rsquo,t want to accidentally get waterput te prison.&rdquo,