The Bitcoin ATM has Arrived…Here’s How it Works

The more I learn about Bitcoin, the more I support it.  In fact, the only donations we accept on this site are Bitcoin donations.  As I mentioned in a post late last summer, I think it represents another way to fight back against the current repressive and immoral monetary system that has a strangle hold on the planet.  Ever since WordPress.com (the extremely popular blogging platform and 22nd most popular site on the internet), decided to accept Bitcoin as payment last November the value of Bitcoins versus the U.S. dollar has more than doubled.

BitcoinChart

The esoteric crypto-currency continues to gain popularity and technologies to make it even more user friendly are popping up all over the place.  The latest is the Bitcoin ATM, which could be a serious game changer for adoption.  From CNET:

NASHUA, N.H. — Zach Harvey has an ambitious plan to accelerate adoption of the Internet’s favorite alternative currency: installing in thousands of bars, restaurants, and grocery stores ATMs that will let you buy Bitcoins anonymously.

It’s the opposite of a traditional automated teller that dispenses currency. Instead, these Bitcoin ATMs will accept dollar bills — using the same validation mechanism as vending machines — and instantly convert the amount to Bitcoins and deposit the result in your account.

Harvey and Matt Whitlock are partners in a New Hampshire-based venture, Lamassu Bitcoin Advisors, that’s hoping to commercialize the ATM by selling to retail businesses, especially ones that also want to accept the decentralized alternative currency from customers.

Unlike modern currency, which can be brought into existence at the whim of politicians or a central bank, leading to each note being devalued, the number of Bitcoins is governed by predictable mathematical algorithms. That’s made Bitcoin popular among libertarians and other activists skeptical of the Federal Reserve; the Free State Project accepts payment for its summer festival in Bitcoins, for instance. (The U.S. dollar has lost 96 percent of its value over the last century because of cumulative year-over-year inflation, according to federal government data.)

To obtain Bitcoins, people use an iPhone app like Blockchain or Android‘s BitcoinSpinner to show the ATM a QR code with their desired address for payments. After they insert a dollar bill (denominations up to $100 are accepted), the ATM automatically credits their Bitcoin account with the proceeds. There’s a 1 percent transaction fee.

Just awesome.  Great work guys!

Full article here.

In Liberty,
Mike

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9 Comments

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  1. If the encrypted algorithm holds up, Bitcoins is a game changer. Historically, any competition to the fraudulent and worthless federal reserve notes are shut down, run out of town, terrorized, and/or sent to jail by the secret service or federal bureau of incompetence. And what do they do with the proceeds of the company they shut down? They keep as much of it as possible.

    With Bitcoins it’s different. Bitcoins is decentralized. That means there is no one point in the system that can result in failure or shutdown. Simply put, they can’t shut it down. That is why the DC criminals are trying to legislate their ability to shut down the internet by law. Then they can make up whatever reason they want to shut sites down they don’t like.

    They can’t use derivatives either to manipulate the price/ratio of USD to Bitcoins. And you can’t sell bitcoins unless you have them! Gotta love it!

  2. Bitcoin might be like precious metals to an extent, the masses will not take it seriously and talk about it around the water cooler until it’s $500 or $1000/BTC. Or it could go to $0.30 but I personally find the former more plausible…

  3. Mr Dimon like to sit on his piles of fiat while he manipulates the slums and food stamps but he can’t touch bitcoin….
    http://valnor.deviantart.com/art/Where-Now-P0037-352975188

  4. I just started mining, wish me luck!!
    Please send me some bitcoin!
    1JiWBoj9vf8ofaMdK4Js95yePXS1AQmjrs

  5. I find bitcoin intriguing but it seems we have to have ‘faith’ in the encryption as we have ‘faith’ in our Ponzi fiat currencies. What’s to keep the NSA or some govt agency somewhere from cracking the encryption thus destabilizing / devaluing the whole experiment? Is that possible?

  6. Bitcoin adoption is increasing and reaching new businesses every day. This machine will make those in the streets adopt the currency faster. The more people who get into this virtual currency, the better! For those who haven’t joined the revolution yet, check out http://thebitcoinmaster.blogspot.com and get started!

  7. If Bitcoin’s encryption is broken, that means that crypto used by banks and governments is also breakable as they all use essentially the same algorithms.

    If they break Bitcoin or the internet, they also screw themselves. Bitcoin is the ultimate Poison Pill.

  8. How is bitcon(sic) not fiat?

    • It’s actually the opposite of fiat. Fiat currency is currency issued and used by “decree.” So this would be a currency made up by a centralized power than then enforces its usage. No one is forced to use Bitcoin. No government or central bank backs its value and defends it at gun point. Its usage is completely voluntary and its survival based on people’s choice in using it. Recall this is the definition of fiat.

      fi·at
      /ˈfēät/
      Noun
      A formal authorization or proposition; a decree.
      An arbitrary order.

      Bitcoin shares none of those attributes, while the U.S. dollar does.

      Mike

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