Cryptocurrency is a de-centralized form of
currency, created by an anonymous programming entity in 2009. Since then,
cryptocurrency has gained popularity globally and continues to grow as a
profitable venture.
The de-centralized nature of the currency allows it to
operate without servers, on a peer-to-peer system similar to file sharing.
There is no central controlling agency for cryptocurrency. While the
de-centralized aspect of cryptocurrency means that no third parties are
required to keep track of transactions, a non-traditional system is necessary.
The solution is called the Blockchain.
The Blockchain is a public ledger of
every transaction completed in the network, including the account balances of
every Bitcoin owner. Miners solve cryptographic puzzles to finalize
transactions and ensure their legitimacy before being recorded in the
Blockchain. Storing Bitcoins through an online service is one way to keep your
cryptocurrency, or you can store your assets on a hard drive or hardware
wallet. It is much more secure to store your cryptocurrency on your own hard
drive, where only you have access to it.
Since the rise of the popularity of
cryptocurrency, the demand for a quick and easy way to exchange traditional
currency for Bitcoin has risen accordingly. Currently, Bitcoin ATMs are being
built at a respectable pace of 6.5 per day. Most of these are in North America,
but are present worldwide in more than 70 countries. Using a credit card, debit
card, or cash, a customer can buy Bitcoin and transfer it to their digital
wallet. This, like any other transaction, is confirmed and finalized on the
Blockchain. Of the 3,423 Bitcoin ATMs, there are two types. One-way Bitcoin
ATMs only allow the user to purchase Bitcoin. Two-way ATMs are more advanced,
giving customers the option to both purchase Bitcoin and exchange Bitcoin for
traditional currency. These ATMs facilitate Bitcoin and cryptocurrency
transactions.
Online merchants such as Bitify and OpenBazaar only accept
cryptocurrencies, and a popular practice is to purchase gift cards to use the
currency. Investment is also a popular use of cryptocurrencies. They are
high-risk investments with unchecked fluctuation but can be extremely
profitable.
Daniel Polotsky is the CEO of CoinFlip, a
cryptocurrency ATM company that aims to make cryptocurrency more accessible and
convenient with a user-friendly system. Polotsky had an unsuccessful experience
with a Bitcoin ATM in Chicago.
At the time, most Bitcoin exchanges occurred in person. Polotsky and his
trading partner envisioned a Bitcoin ATM that could take the place of a human
trader, with multiple benefits.
The ATM system was familiar and convenient,
allowing newcomers to quickly get the hang of trading Bitcoin. In addition, it took
away the necessity for in person meetups, allowing for hundreds of virtual meet
ups per month. CoinFlip trades not only Bitcoin, but 5 other cryptocurrencies.
They currently trade Ethereum, Dash, Tron, Litecoin, Komodo, and Bitcoin at
their 120 locations across the United States. Consumers can use a CoinFlip ATM
without a bank account and almost immediately exchange cash for the
cryptocurrency without the customary waiting period, which can take months.
They also offer the lowest Bitcoin ATM fees. All of the CoinFlip ATMs are
legally approved by the state that they operate in.
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