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Topic: will circle's new insurance model bring bitcoin mainstream? - page 2. (Read 3912 times)

legendary
Activity: 2242
Merit: 3523
Flippin' burgers since 1163.
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.
legendary
Activity: 1022
Merit: 1000
Easily fund your bitcoin with credit card with zero fee, really?
legendary
Activity: 1162
Merit: 1007
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.  
legendary
Activity: 1400
Merit: 1013
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.
sr. member
Activity: 434
Merit: 250
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.
legendary
Activity: 1988
Merit: 1007
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.
legendary
Activity: 4410
Merit: 4788
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!!
hero member
Activity: 756
Merit: 502
it simply means even for a mt.gox scenario you will have your funds since the insurance will pay you what you lost
hero member
Activity: 686
Merit: 500
What does it do? Is it a wallet? Is it an exchange? The site is not very clear.
donator
Activity: 1218
Merit: 1079
Gerald Davis
Well the terms of the insurance policy are not available.

Quote
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.
hero member
Activity: 756
Merit: 502
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
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