Understanding Bitcoin ATM’s
ATM’s distributing Bitcoin appeared recently, and now they are becoming more and more prominent. Many regard them as a positive development in the cryptocurrency arena. Bringing Bitcoin to the masses is one of the main goals of any of the so-called Bitcoin evangelists, and ATM’s are doing exactly that.
When one steps outside the circle populated by the tech savvy people that see the potential in new technologies, doubt and ambivalence is present. Although media covered the topic, the entire concept is still too alien from the perspective of the average Joe. He is having hard time understanding meaning of the cryptographic hash function or a node. Therefore, it is imperative to try and provide information that is relevant to the both average Joe and highly skilled developer that knows ins and outs of Bitcoin. The intent of this text, and others that will follow is to provide such information, and help both groups understand more about Bitcoin in general, and what exactly Coinoutlet does. We will explore Bitcoin ATM’s, regulation and general issues.
What is a Bitcoin ATM?
Bitcoin ATM resembles ordinary ATM’s. It has a connection to the central server, where it sends or receives messages. Consider that when a person withdraws money from a bank account, the balance decreases by the amount taken. Since most of the users do not have Bitcoin deposits, they need to acquire them first. Bitcoin ATM enables user to exchange USD for Bitcoin. The machine is connected to the Internet and it follows BTC/USD exchange rate. Based on the prices available, you will be able to buy Bitcoin on the ATM. Bitcoin is represented by two sets of numbers, one is a public key, and the second one is a private key. When buying Bitcoin on the ATM, you will receive a private key that will be transferred to your digital wallet. That is in fact your Bitcoin, a set of numbers digitally stored in a wallet.
Is it safe?
It is often the case that the question of security and legality arises. There are several companies producing cryptocurrency ATM’s at the moment. In the USA, Coinoutlet is the only company that implements AML/KYC according to FinCEN Standards and state-by-state consumer protection requirements regulations.
Financial legislation in the USA is relatively strict. The management team behind Coinoutlet worked hard to get through regulatory hurdles in order to operate legally. Our goal is to create a service that will promote cryptocurrency, while maintaining accountability and legality in mind.
Why do I need this?
You don’t. Two decades ago, the internet was not necessary. Now it is. With funds and capital pouring into the market, the pace of progress is rapidly increasing. Interesting thing about Bitcoin is that it is both an investment and an innovation. Even more importantly, it is a currency that you can use. Hop on the digital blockchain train, and enjoy the ride.