Bitcoin bank

Bitcoin bank entices mom and pop with insurance, fraud

If Bitcoin is meant to be an anonymous, decentralized currency that is free of intermediaries and national restrictions, then today's launch of a new Bitcoin bank, called Circle, might seem deeply antithetical. Circle's website does its utmost to look like that of an ordinary financial service, using words like "withdrawing, " "depositing" and "digital money, " instead of the usual terms about buying and selling Bitcoins. It follows US anti-money laundering rules, requiring users to identify themselves, and it expects you to connect your Bitcoin account to your normal credit card or bank accounts. Crypto-currency purists just aren't going to dig it, but then again Circle claims to offer some serious advantages that are missing from other, more direct approaches to Bitcoin banking.

It charges no fees for anything (at least not right now), which makes it a relatively friction-free way of accessing money in a range of local currencies; it insures deposits against Mt. Gox-style calamities; it stores "most" of its holdings offline to safeguard it from hackers, and it even has a customer service phone line. For someone with relatives or business interests in other countries, who has to deal with unstable banks or currencies, Circle could well serve as an enticement to use Bitcoin for the first time, which is exactly its stated objective. But of course it glosses over the fact that "digital money" itself can be highly unstable, and the friendly voice at the other end of that customer service line is bound to sound a little hollow if the underlying worth of your savings suddenly plummets.

Source: www.engadget.com June 3, 2014 – 13:14

Bitcoin bank folds after hacker robbery

2014-03-06 19:54:00 by gnostic2012


Published time: March 05, 2014
Bitcoin storage site Flexcoin announced Tuesday that it has closed after hackers robbed it of some $600,000 worth of digital currency.
“On March 2nd 2014 Flexcoin was attacked and robbed of all coins in the hot wallet."
"The attacker made off with 896 BTC,” the bitcoin bank said on its website. “As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately.”
The stolen 896 bitcoins come to a loss of around US$600,000, depending on current bitcoin trading value

A bank of bitcoin can create infinite amount of

2014-01-04 14:43:59 by robert2734

Bitcoin. Just like they do with dollars. Say I own a bitcoin bank. I take deposits and make loans. I don't have to own any real bitcoins. If you get a loan from me, I write on a piece of paper that you have a million bitcoins. You go spend it. The bitcoins swirl around the economy. Unless everyone redeems their account with me at once, I don't need to own any actual bitcoin.

Big banks jumping on bitcoin bandwagon

2014-03-10 08:06:56 by -

Many major Wall Street banks are trying to understand bitcoin, the virtual currency that has gained interest in the last few years, and how it could change the global payment system, say industry experts.
BloombergA twenty-five bitcoin
“What we have learned is that many of the banks have individuals and teams now focused on getting to know bitcoin and how it impacts the business,” said Barry Silbert, founder and CEO of SecondMarket, which is working on creating a U.S.-based bitcoin exchange and is an investor in Bitcoin companies.
J.P. Morgan analyst John Normand writes: “For corporates, bitcoin’s appeal is two-fold: no or low transaction costs from a peer-to-peer payments system, and potential brand recognition from trialing an innovative technology

Circle wants to be your friendly neighborhood bitcoin bank  — The Verge
The company, which is opening its service today in a limited release, hopes to be your friendly online bitcoin bank. Its web-based interface lets you deposit US currency and see it converted instantly to bitcoin without any fees.

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