Why Well-Funded Startup Just Gave Up on Bitcoin Business

Why Well-Funded Startup Just Gave Up on Bitcoin Business

Circle was launched in 2013 with ambitions of becoming the leading player in the cryptocurrency industry. This start-up company based in Boston used m

11 New Bitcoin ATMs Installed in Texas
Bitcoin’s impressive 34-month high despite volatility in the Chinese stock market
Prosecutors Pay Bictoin Ransom & IRS Targets Coinbase Data

Circle was launched in 2013 with ambitions of becoming the leading player in the cryptocurrency industry. This start-up company based in Boston used millions from its investors to advertise its bitcoin-like business.

Now, Circle has decided to leave the Bitcoin business. On Wednesday, the company announced that it would focus on other things rather than Bitcoin. In this case, Circle has requested its Bitcoin customers to transfer their accounts to Coinbase – a cryptocurrency company.

The Circle’s move is not surprising as many people are no longer enthusiastic about Bitcoin. In this case, the digital currency has remained popular for people who want to make secret online transactions. The peer-to-peer consumer payments in North America have been taken over by Venmo, which is a PayPal-owned start-up that gained popularity on college campuses.

In this case, the former Bitcoin companies have now started focusing on the Blockchain – a distributed ledger technology. Blockchain has gained popularity since companies can use the internet to create tamper-proof transactions. In this case, blockchain reduces the cost of back-end financial transactions including foreign exchange and settlement clearances.

Just like other companies, Circle has shown great interest on the blockchain. On the Wednesday announcement, circle said that blockchain business is growing tremendously in the financial industry. In the past three years, Circle has grown to be a major liquidity provider that deals with digital currency markets. In the statement, the company said that they would work hard to promote the growth of the digital currency. In this case, they are empowering the consumers to use blockchains for making payments.

Circle is committed to playing a role in offering top-notch services to the fast-evolving industry. In fact, they have invested millions in creating the infrastructure needed for making cross-border operations. However, the company faces stiff competition since the banks have created their own blockchain systems. For instance, some of the banks have build partnerships with fintech firms such as Ripple to develop blockchain systems. Circle also launched spark, open source software project, to promote payment related to the blockchain. This move comes after several companies including R3 and Chain announced similar measures.

Meanwhile, the price of bitcoin has stabilized despite losing popularity in the venture circles. Since US presidential elections, the cryptocurrencies price has stood at over $700 with the price of bitcoin being around $765. Therefore, the cryptocurrency has enjoyed an extraordinary period of price stability. Despite the recent announcement of IRS to investigate coinbase accounts, the stability is steadfast. Also, IRS has plans to probe the Circle’s operations.

COMMENTS