Topic: Calling all Bitcoiners: SPEAK OUT against CIRCLE! - page 6. (Read 6812 times)

That's so insanely cynical for a business that should not be used to store massive amount of Bitcoins anyway. Seriously, when you buy an Amazon giftcard do you think "They'll discontinue gift cards and move to a country where I can't sue them?" You are bad mouthing a company that, as of yet, has done nothing wrong.

Haha, good man! Just read through their lengthy User Agreement and picked up on that too  

However, can not find any suggestion of private/fractional trading using customer funds as leverage. It's my understanding that this would be in breach of their MSB license and FinCEN compliance. Interestingly, their parent company Circle Internet Financial Limited, is organized under the laws of Ireland (collectively, “Circle”). Not sure, but by transferring their company assets to Parent, can they negate their USA Tax liabilities, akin to Apple?

read the terms, they put a lien on your coin as soon as its deposited. they then use those coins to trade for their profit AKA fractional reserve

where the total bitcoins on members balances. DOES NOT equal the total holdings in cold store. its not used as a reserve. its used as trading money. no wallet provider should EVER take your bitcoins and then play with them behind the scenes. if they want to do it, they should stick with FIAT.

if they make a bad gamble and lose coins, yes its protected by their insurance (kind of). but most insurance companies do not pay out simply on request multiple times per year, they usually do it when there is no other way out. so circle would probably keep their investing losses a secret from the public and continue with the less coin to attempt to recoop losses, without publicising it. after all if they did publicise it, they would see soo many withdrawal requests, they would be left in debt.

thus until totally in unrecoverable debt to make an insurance claim, you will never know the true reserve they have backing the balances of their customers..

we dont need fractional reserved investments paying for bitcoin business profits. as it never ends well. EG first meta putting funds into MTGOX, then losing it. and the women in charge ends up committing suicide. while brock pierce walks away selling off his stake in the first meta company.

Haha, good man! Just read through their lengthy User Agreement and picked up on that too  

However, can not find any suggestion of private/fractional trading using customer funds as leverage. It's my understanding that this would be in breach of their MSB license and FinCEN compliance. Interestingly, their parent company Circle Internet Financial Limited, which is organized under the laws of Ireland (collectively, “Circle”). Not sure, but by transferring their company assets to Parent, can they negate their USA Tax liabilities, akin to Apple?

bitcoin should NOT be about trusting third parties with your wealth. if anything you should only use circle for 2 reasons

1. easy way to buy bitcoins and transfer it ALL to your own personal cold store
2. only keep daily spend amounts in their wallet for easy day-to-day spending

And what does that mean, exactly?

Just that they'll have to be bought out and/or lobby the right regulator before the games can start.

oh and by the way.. by signing up to them you waive your right to ever make a class action lawsit against them, and instead accept to have arbitration as the only method of recourse.

They are legally prohibited from doing so as a registered MSB.

Its sad to see these members bad mouth new companys and ideas coming into the bitcoin world.  If all these new startups fail and the millions of venture capital dollars is wasted bitcoin is going down the drain.  We need to support company's like circle even if us early adopters arnt going to use them.  I was under the impression we all want mainstream adoption?  Or do you guys only want people to use bitcoin the way you use it?

5.4 Arbitration. Except for claims for injunctive or equitable relief or claims regarding intellectual property rights (which may be brought in any competent court without the posting of a bond), any dispute arising under this Agreement shall be finally settled on an individual basis in accordance with the American Arbitration Association's rules for arbitration of consumer-related disputes and you and Circle hereby expressly waive trial by jury. The arbitration shall take place in Boston, Massachusetts, in the English language, and the arbitral decision may be enforced in any court. The prevailing party in any action or proceeding to enforce this Agreement shall be entitled to costs and attorneys’ fees. You agree that disputes between you and Circle will be resolved by binding, individual arbitration and you waive your right to participate in a class action lawsuit or class-wide arbitration.

Don't you think the community pressure and their future competition will force them to implement something like proof of solvency/reserve?

They could accept a bunch of customer deposits and then start operating on a fractional reserve.

They could play the market, effectively taking a short position, using customer deposits.

Wall Street loves that doing that shit.

They could accept a bunch of customer deposits and then start operating on a fractional reserve.

They could play the market, effectively taking a short position, using customer deposits.

Wall Street loves that doing that shit.

Circle has to be the worst idea in Bitcoin history; a Bitcoin central bank to centralize a decentralized cryptocurrency!  Next thing we know, there will be a Bitcoin Federal Reserve, Bitcoin Fractional Reserve Banking and, of course, Bitcoin INFLATION!

Anyone who supports the idea of DECENTRALIZED CRYPTOCURRENCY needs to IMMEDIATELY speak out against circle and its corrupt CEO Jeremy Allaire.  This is a massive ponzi scheme just waiting to happen.  They are so desperate to attract Bitcoiners that they are giving away a free $10 in Bitcoin just to get you ID-verified on their system.

This is a travesty and I am just dumbfounded that such a company could even get off the ground.  Bitcoiners need to speak out on the forums, blogs, magazines, commenting on articles - SPREAD THE WORD.

This company 'Circle' is gearing up for the biggest ponzi scheme that Bitcoin has ever known.  And if these types of centralized Bitcoin banks are allowed to succeed, it could very well spell the end of Bitcoin and a mass exodus towards other, less commercially-corrupted cryptocurrencies. 

Michael Moriarty

People: It's one thing to be concerned they are a scam, but Circle cannot literally inflate the amount of actual Bitcoins.

th beleif is that when depositing, most people leave funds in there and only withdraw about 10% at any one time. this leaves 90% sitting in their 'cold store'/'reserve'

the way circle profits is to play with this 'reserve' either on private trades or on exchanges. just making a small 1% here and there to cover their costs. thus customers dont get to pay any fee's as the profits are traded behind the scenes away from the customers eyes.

and look how FIAT turned out for the banking industry with their behind the scenes trading so that customers can have fully insured funds in thier bank balance without paying large banking fee's.

bitcoin should NOT be about trusting third parties with your wealth. if anything you should only use circle for 2 reasons

1. easy way to buy bitcoins and transfer it ALL to your own personal cold store
2. only keep daily spend amounts in their wallet for easy day-to-day spending

I'm a big fan of the Bitcoin protocol!

Thought Circle's implementation was a great idea. Am I missing something here?

How does it differ from any operating Bitcoin business/exchange like; Bitstamp, Coinbase, Kraken?

Once you transact with them, you can immediately withdraw your BTC, can you not?