Bitcoin wallet FAQ

The implosion and subsequent liquidation of bitcoin exchange Mt. Gox last month played to the worst fears about digital currencies. Confusing to use and volatile as a store of value,bitcoin has also been the frequent target of hackers,thieves,and incompetent businessmen. Despite bitcoin’s appeal to venture capitalists eager to profit from a new financial system,the value for the average person remains elusive.

Circle,a highly anticipated new bitcoin startup that has raised $26 million,is hoping to change all that. 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. It physically isolates your bitcoin keys in cold-storage vaults and requires multiple "signatures" to bring them online. Its deposits are 100 percent insured,and it complies with US money transmitting and anti-money laundering laws. "The focus is on making this easier for people to adopt, " says the company’s CEO,Jeremy Allaire,who previously helped create the Macromedia (later Adobe) Flash platform and co-founded the video platform Brightcove.

"The focus is on making this easier to adopt."

Specifically,the focus is on making bitcoin easier to use for transactions as opposed to merely fueling speculation by investors. Its web interface offers a streamlined way for you to send or request money,review your transactions,and access information about your account. You can tie your bank account and credit cards to your account to make it easier to add and withdraw funds,or you can operate entirely in bitcoin. The important thing is that customers begin to see bitcoin as a convenient way to conduct transactions. "We’re not driving people to buy and hold bitcoin, " Allaire says. "We want to drive that utility value and remove as much friction as possible."