Bitcoin has had its moments of bumps along the cryptocurrency highway since it was released in 2009 by Satoshi Nakamoto. On Monday, Jeremy Allaire released through his startup, Circle, a Bitcoin banking platform, according to CoinDesk .
Allaire and his collaborator, Sean Nevill, released the Bitcoin wallet service with a twist that allows transfer using a bank account or debit card, which converts into bitcoin. There are many online retailers, such as DELL, Overstock.com and others who accept bitcoin.
The service launched on Monday will have Android and iOS apps in the near future. This is bringing Bitcoin mainstream. The lag in Bitcoin has been the consumer. User friendly service is needed to have Bitcoin in every consumer’s hand.
What is different about Circle? It separates itself from Blockchain with its over 2 million wallet holders and Coinbase the #2 wallet provider with insuring fully every user’s deposit.. Fear of loss due to hacking such as the Mt.Gox exchange, which filed bankruptcy this past February to website theft and abuse, has caused much criticism of Bitcoin. The naysayers have derided it due to the losses.
The fear is now handled with this insurance guarantee and a slick interface to avoid the confusing and unattractive technology of cryptocurrency. The average consumer does not understand the technology for using Bitcoin and as a payment system. Consumers find security in the local bank with its insured account from the FDIC and the ability to physically hold dollar bills; it is difficult to grasp a figure on the computer screen that is only on the Internet.
Allaire is reaching out to consumer psychology for tech easy by allowing users with a friendly online service with as much storage as they desire to use from Circle. There are no fees in addition to the insurance which is provided by Marsh, one of the largest insurance firms in the world.
Allaire stated in an interview with the Guardian: “The benefit is going to be for people who want to use an online service, and don’t want to worry about managing and securing private keys and so forth. They can store as much as they want, there’s no fees, and it includes all the offline storage we provide as well as full insurance on all deposits.”
This is very attractive to those who cannot use the traditional banking system or are under banked by the traditional banking system. Circle and its new service is not to be confused with PayPal either. PayPal is accepting bitcoin payments through its Braintree subsidiary and has announced partnership for processing through BitPay, Coinbase and GoCoin.
When the first Bitcoin ATM was unveiled in San Diego in mid September by Steven Michaels of Bitcoin Merchants.com he emphasized the consumer, “You have the power to send money anywhere in the world to any person connected to the internet nearly instantly with virtually no fees and without third party interference.”
Circle was launched Monday while Allaire is at the Sibos 2014 Convention in Boston this week. The company announced that, “When we set out to build Circle, we imagined a new kind of Internet-centric consumer financial service, one that the average person would find enjoyable and powerful, and which built on the promises of bitcoin – instant, global, secure, free transactions.”