I am not sure if I am using the term hedging correctly. What I mean to say is if someone adds some fixed amount of money from a bank to the bitcoin wallet, is it a good idea to keep the exact value in wallet and take the volatility bit out for the users. So no matter how the bitcoin exchange performs the wallet amount remains the same. If it goes down, we as a startup bear the losses or if it goes up, we earn the profits.
As long as you make it perfectly clear to the user, this should be fine.<p>Not sure if anyone would be up for it though---I mean I certainly wouldn't. Sure it would remove the volatility but that volatility could give the user massive profits. Just look at the BTC price right now!