Bitcoin

Circle Seemingly Turns Its Back on Bitcoin, Advises Users Sell

JP Buntinx | March 22, 2017 | 11:00 am
NewsBTC Circle Bitcoin
Bitcoin

Circle Seemingly Turns Its Back on Bitcoin, Advises Users Sell

JP Buntinx | March 22, 2017 | 11:00 am

Circle pivoted their business model away from bitcoin quite some time ago. At that time, people speculated the company would turn its back on bitcoin sooner or later. It appears that is slowly happening, based on an email sent out to all platform users. The company advised bitcoin holders to convert BTC to cash in the event of a hard fork. An oddly-worded message from the company, although it makes their stance rather clear.

A new email sent out to all Circle users has left some bitcoin enthusiasts baffled. It is only normal the company addresses the bitcoin hard fork situation. If that event happens, consumer funds at risk until the network calms down once again. Bitcoin owners should not broadcast any transactions if and when such a hard fork occurs. Most service providers will simply halt deposits, withdrawals, and transfers during this period.

Circle Advises Clients To Sell Bitcoin

Circle is doing something differently, though. Their latest email advises users to sell their bitcoin in exchange for cash. To be more specific, people who do not want to be exposed to a bitcoin fork should take this course of action. This message can be interpreted as Circle actively advising users to get rid of bitcoin altogether. Their explanation is also factually incorrect, which only makes matters even worse. It appears Circle wants to scare some people into selling their bitcoin, albeit it is unclear what they hope to achieve by doing so.

While it is true a bitcoin hard fork is a risk, not all consequences are negative by default. Bitcoin holders need to be made aware of the fact, not moving funds around during a hard fork transition is the best course of action. Selling bitcoin in exchange for cash seems a rather drastic step. Granted, it does protect users from potential bitcoin price volatility. It also means users will need to buy back bitcoin afterward, potentially at a much higher value.

All things considered, it is very much unlike Circle to reach out to clients in such a manner. Actively advising users to sell their bitcoin is a bit controversial. Then again, Circle prefers to not be associated with bitcoin for the time being. It is unclear if their email will have any impact on the bitcoin price moving forward, though. Most bitcoin holders are well aware of the dangers associated with a hard fork. It is doubtful many users will sell coins before the split happens.

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