A Circle change in the bitcoin on the block chain industry is how to treat?
In the news, you can also feel a particular emotion.
On the surface, Circle decided to give up bitcoin trading services, perhaps there is precedent. The company has long been in its discussion in social payments on efforts, and the bitcoin protocol as a financing basis, rather than customer oriented monetary cognition.
Circle, the decision may not cause a big impact. The company will continue its customer transaction (buying and selling) bitcoin, in exchange for cash, will also continue to use the agreement as a basis for a new hybrid block chain platform Spark.
However the situation is, in the news release after a few hours, according to Circle, there are various views. This means that the transformation is not completely unexpected, not loved, depend on the specific object of inquiry.
According to the media reports, some startups in the customer to see this news, the mood is complex, even a little disappointed, especially those customers who use Circle as their main portal of trading bitcoin.
JoeColangelo, chairman of the consumer advocacy group Consumers’Research Circle was not a surprise for this decision. He said, Circle long ago showed signs of.
He will cause the shift to low income, and that the Circle in the future will be a more favorable opportunity to restore the service.
Colangelo told CoinDesk:
“If bitcoin as an asset of the demand increase, I think they will return to the sale of bitcoin this line. The present situation is to abide by the rules, the fight against fraud requires additional expenses, so it may not get enough interest.”
In response to CoinDesk’s comments, changed Circle answer. Company representatives said that most of the business resources are invested in the bitcoin trading to, which with their core mission will be quite different.
Unocoin co-founder and chairman of Circle SunnyRay also decided not surprised, but he still made a critical remarks, Circle said “short-sighted”, did not recognize bitcoin as a digital replacement value of assets like gold.
“They always say they bitcoin blockchain transaction value and more interested in.”
Why is it now?
Other people are not aware of this change is coming.
Block chain products ARK investment management director ChrisBurninske Circle of this shift in surprise. He is very confused, and predict the number of financial companies will begin to play a role.
He told CoinDesk:
“I think trading bitcoin Circle provides service drag on its development. In addition, it is also affected by the IRS’s attention, and suffer more and more conservative investors will focus from bitcoin pressure.”
This view is very common in the survey, but Circle said they did not suggest that the shift and the U.S. government to increase the tax on digital currency action.
Burninske will be part of the transformation of the Circle as bitcoin startups bigger change. These startups will have their attention to the application.
In addition, like Colangelo, Burninske also believes that Circle may not always give up bitcoin transaction services.
He commented: “that is to say, these decisions are not immutable. One day Circle bitcoin transaction services and on its platform, it is also not impossible.”
Coinbase seems to be the last winner of the change. Because, according to the Circle blog content the change of view, with the intention of buying bitcoin Circle customers can turn to Coinbase, which will enable Coinbase to become the preferred trading platform for startups “”.
TimDraper is an investor in Coinbase, from the DFJ venture capital fund. He said in an email, the change of Circle will lead to the loss of market share, which has helped Coinbase.
He told CoinDesk:
“Circle’s loss of market share transfer to Coinbase, so they decided to change their policy. Coinbase is the big winner.”
FredWilson, another UnionSquareVentures Coinbase investors said, although he did not understand the motivation behind Circle change, but it will undoubtedly put in the strategic position of Coinbase digital currency transactions and wallet services.
“Although I can not evaluate Circle to make this decision, but Coinbase allows it to occupy a dominant position in the rapid development of emerging markets. Personally, this is not what is not good.”
Of course, not all people think this is a chance. TimSwanson researcher R3 block chain alliance in the twitter pointed out that the block chain ecosystem services and is still trading wallet industry received degree, low participation in the field.
Keep Coinbase in the field of reform, the co-founder of FredEhrsam, said only the following sentence:
“At this stage the block chain ecosystem, try different methods are good for all people.”
In shock, some industry observers told CoinDesk, in general, from the perspective of Circle, this change is very wise.
One of the accepted this change is the writer WilliamMougayar, he told the CoinDesk that a greater share of this change allows Circle to seize the global remittance market.
“They reproduce Venmo, but the focus in the world, and the use of user friendly interface. The needed in the field of human experience, in addition, the familiar application user interface front-end processing transfer business is also conducive to consumer adoption.”
Researchers Needham&Co SpencerBogart stressed that Circle did not give up bitcoin completely, perhaps the start-up company is considering cuts that might not be beneficial service, and points out some other seek more interests in the field of the company.
He added that the Circle change is not a bad reflection of digital currency itself.
“This does not mean that bitcoin does not work, or stop the development of the (on the contrary). It just means that they want a bitcoin, money, mainstream, commercial block chain and follow the rules is very difficult.” He further concluded: “in the end, the honey badger doesn’t care.”