will circle's new insurance model bring bitcoin mainstream?

[cuddaloreappu]

The model proposed by circle looks very nice, now with insurance the funds will be 100% secure..

what is your opinion

https://www.circle.com/

http://www.youtube.com/watch?v=Kgzu-QwzW3M

[DeathAndTaxes]

Well the terms of the insurance policy are not available.

3.6 Theft Insurance. In the event that any bitcoins held in your Circle Account are lost or stolen as a result of a direct breach of Circle’s digital or physical storage facilities your bitcoins are fully insured, subject to the terms and conditions of Circle’s insurance policy. If your bitcoins are lost or stolen as a result of your own failure to maintain proper security protocols in accordance with Section 1.3, such loss is not be covered by Circle’s insurance. You should also note that deposits are insured by a private insurance company, and not by the Federal Deposit Insurance Company (FDIC) or any other governmental agency. For more information on Circle’s insurance coverage, please visit www.circle.com/helpdesk.

I will reserve judgement until the link www.circle.com/helpdesk actually works.

[fryarminer]

What does it do? Is it a wallet? Is it an exchange? The site is not very clear.

[cuddaloreappu]

it simply means even for a mt.gox scenario you will have your funds since the insurance will pay you what you lost

[franky1]

it simply means even for a mt.gox scenario you will have your funds since the insurance will pay you what you lost

they should disclose this private insurance company. you know, make a statement
"incase of insolvancy or loss contact XYZ"
after all if they do run off, and don't tell the world who to claim against. your still stuck!!

[ranlo]

They claim insurance, but what happens if Bitcoin skyrockets in value? Are they insured for an unlimited amount of money? I just don't see how this is going to work with something so volatile.

[beetcoin]

do they provide insurance for those who keep their coins in a cold storage wallet? some people might think it moot, but it does a good job of getting people to actually use cold storage.

[justusranvier]

Anyone else feel like that whole video just screams SCAM?

Yes.

There's no way to do what they claim without operating on fractional reserves.

[Peter R]

There's no way to do what they claim without operating on fractional reserves.

Justus, how would operating on fractional reserves enable Circle to do what they claim more easily?

My initial impression from the video is that this would make it a lot easier for the average person to use bitcoin and potentially give Circle a large user base to monetize in the future.  I just hope their multisig cold storage model is as secure as they think it is.  

[joele]

Easily fund your bitcoin with credit card with zero fee, really?

[bitebits]

They claim insurance, but what happens if Bitcoin skyrockets in value? Are they insured for an unlimited amount of money? I just don't see how this is going to work with something so volatile.

They buy bitcoins with the fiat you are depositing. So I don't really get your concern? If they would buy fiat with the bitcoin you are depositing, then there would be a problem when bitcoin skyrockets and you want your bitcoins back.

I think it looks like a great service to the main public, it is happening: users don't need to understand Bitcoin, to be able to use it.

[Slingshot]

Anyone else feel like that whole video just screams SCAM?

NO.

 In fact this could well be the Very BIGGEST THING to happen for Bitcoin so far!

 Yes it could instead turn out to be a dud. But the CEO seemed extremely credible to me.

 If their markups to and from Bitcoin are not excessive then their free services business model to their customers will almost surely go down as a huge sucess in the Mainstream. In return for insured accounts and all their "free" financial services offered at Circle it seems their covering all the bases quite well with a solid business plan if their ducks are all in a row. On the flip side their likely gaining additional fees through other means rather than directly from their customers. Time will tell, but hopefully this is The Real Deal, finally!

 *Only their business address and phone or at least a fax number are not yet listed on their site so far, plus no mention I found yet of their insurance carrier. I haven't read everything yet though. Shortly I will, if I find any of this I will update in a reply below within 24 hours. If these are not found then hopefully they read this and decide to list all of these things very soon to put us at further ease: At least a business mailing address, a fax number, and their insurance carrier, at a minimum. Personally I don't expect it to be Lloyd's of London, any ole 'too big to fail' is okay, lol. Okay, not really, but one get's the joke I hope.


 I believe Circle is on the up and up. I have a great feeling about Circle.


 2014 is THE YEAR OF BITCOIN.
------------------------------------

 From here out things just get better and better for all things Bitcoin.

 With or without Circle, big things, huge things, are going to occur throughout the rest of 2014 for Bitcoin.


 In 2013 Bitcoin merely arrived on scene in earnest. But 2014 and 2015 is when huge things occur for Bitcoin. HUGE THINGS. Very likely starting with a Circle!


 To the person that asked what do they offer? Watch the video and listen, or read the article at:
http://www.coindesk.com/circle-reveals-roadmap-bringing-bitcoin-mainstream-market/



Bitcoin is Freedom.

[Alley]

Looks like exactly what average joes are looking for.  Insured bank account and can buy bitcoins without fees.  I'm gonna ask for a invite and check it out.

[mooncake]

Looks like exactly what average joes are looking for.  Insured bank account and can buy bitcoins without fees.  I'm gonna ask for a invite and check it out.

$10 btc free when you sign up. 

[paulsonnumismatics]

Hey sir, you sir, yes sir, come here, sir, i got somethin' for you, sir. Here sir....

I know is the proverbial ass-aproach in this forum to everything since this industry is plagued by professional scammers but...

I will not be an early adopter on this one. I dont have problems on joining during the "mainstream" phase :-)

[mooncake]

According to the coindesk article, Circle lets consumers deposit, withdraw, send and spend btc.

If Circle accepts customers from most of the countries, it will be big. Imagine the ability to deposit btc in US, send it to anywhere in the world and withdraw btc. It is frictionless remittance. The challenge is having banking relationships in each country.

I also do not understand how btc is spent in Circle, assuming Circle holds the private key.

[DooMAD]

Having trouble figuring out what the business model is here.  If there's no fees and everything is free, where does their profit come from?  Is the deposit price the same as the withdrawal price?  Is their trading price higher than the amount you'd pay elsewhere?  And how they can afford to give away $10 to each new user while still being able to afford insurance? 

Call me skeptical at the moment.  There's a few too many unknown variables for me to take it at face value.

[mooncake]

Having trouble figuring out what the business model is here.  If there's no fees and everything is free, where does their profit come from?  Is the deposit price the same as the withdrawal price?  Is their trading price higher than the amount you'd pay elsewhere?  And how they can afford to give away $10 to each new user while still being able to afford insurance? 

Call me skeptical at the moment.  There's a few too many unknown variables for me to take it at face value.

Keywords: deposit, withdraw, send and spend.

I am not too concerned about profit as I've read that they have millions of VC fund backing them and they do not plan to charge fees at this stage. It is probably similar to how facebook operate in the early stages. To them it is about capturing market share. Profiting comes later.

What I do not understand is sending and spending. Just sign up and explore. 

[DooMAD]

Having trouble figuring out what the business model is here.  If there's no fees and everything is free, where does their profit come from?  Is the deposit price the same as the withdrawal price?  Is their trading price higher than the amount you'd pay elsewhere?  And how they can afford to give away $10 to each new user while still being able to afford insurance?  

Call me skeptical at the moment.  There's a few too many unknown variables for me to take it at face value.

Keywords: deposit, withdraw, send and spend.

I am not too concerned about profit as I've read that they have millions of VC fund backing them and they do not plan to charge fees at this stage. It is probably similar to how facebook operate in the early stages. To them it is about capturing market share. Profiting comes later.

What I do not understand is sending and spending. Just sign up and explore.  

If "signing up and exploring" includes depositing money, I'll pass and would advise other do the same until more details are revealed.  Aside from the track record of third parties being trusted with private keys, I think people generally shouldn't be so trusting of people on the internet claiming they'll look after your money for you.

I've used the analogy multiple times now, but if this was someone standing on a street corner with a glass box saying they'll look after your cash for you and convert it into another currency with no fees, I doubt you'd be too inclined to oblige in putting your money in.  But show people a flashy youtube video asking people to deposit Bitcoin and for some reason they suddenly think it's a great idea to hand their money over to a complete stranger.

If they're not 100% clear and precise about how it works and how they make their profit while still protecting their customers' money, don't put money in.

[mooncake]

If "signing up and exploring" includes depositing money, I'll pass and would advise other do the same until more details are revealed.  Aside from the track record of third parties being trusted with private keys, I think people generally shouldn't be so trusting of people on the internet claiming they'll look after your money for you.

I've used the analogy multiple times now, but if this was someone standing on a street corner with a glass box saying they'll look after your cash for you and convert it into another currency with no fees, I doubt you'd be too inclined to oblige in putting your money in.  But show people a flashy youtube video asking people to deposit Bitcoin and for some reason they suddenly think it's a great idea to hand their money over to a complete stranger.

If they're not 100% clear and precise about how it works and how they make their profit while still protecting their customers' money, don't put money in.

There is no need to deposit money. On the contrary, Circle will give you $10 after you have signed up.

If you are concerned with Circle holding your private keys, just withdraw your btc.

But you are right, I am still not 100% clear how it works even after watching their demo video.
http://www.youtube.com/watch?v=Kgzu-QwzW3M