Monday, June 2, 2014

Backers Want Everyone to Use Bitcoin

Bitcoin investors are eager to get the digital currency into mainstream usage. While we are still far from that reality there have been great strides recently to make the currency more popular. The biggest obstacles towards wider usage have been the public’s perception of the currency as confusing and the fact that many associate it with illegal activities. These concerns are legitimate because the currency is unregulated and anonymous making it a perfect candidate for illegal dealings. Also, the public is concerned with how the currency fluctuates up and down and how the Mt. Gox exchange crashed. Even so, the currency is flourishing and with the help of Bitcoin start-ups and backers the currency is being successfully promoted and supported by many businesses. More and more retailers are becoming pro-Bitcoin, like and TigerDirect who are know accepting Bitcoin payments. Even more encouraging for the future of the digital currency is that Circle recently launched a free Bitcoin consumer-finance company. This is a new move for the currency because it boots out the once dominant method of fee-based Bitcoin consumer services.

The new Circle exchange was created by Circle co-founders Jeremy Allaire and Season Neville. They are doing the most to tackle the public concern of not understand Bitcoin. Their goal in starting the company was to help instill consumer confidence, whichcombats many of the public’s concerns. They use terms that make the currency more accessible. For example, instead of saying buying, selling and exchanging Bitcoins they use more common, banking terms like deposits, withdrawals and storage. They also help with the trust aspect of the currency by giving a free service, providing phone support, military grade encryption, and insurance from theft.

Another fund was established by the Winklevoss twins that allows people to invest in Bitcoin without actually owning any. This kind of exchange is the first of its kind an acts as a trading fund that can be bought and sold on the public markets like a stock or index fund. This allows people to reap the benefits of the Bitcoin exchange without experiencing the risk normally associated with the new currency.

These two new Bitcoin innovations are just the beginning of building trust and helping the public to understand that Bitcoin and other digital currencies are the way of the future. It will take time, but Bitcoin is on its way to becoming mainstream.

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