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Bitcoin can now be purchased practically anywhere, from ATMs to drugstores
Mike Scanlan, a former Tufts Health Plan information security specialist, discovered bitcoin in 2014. “Oh my gosh, this is the future of finance,” he concluded.
Scanlan then attempted to purchase some.
“It was the worst time of my life,” Scanlan recounted. “I tried for a week and a half to get bitcoin.” This convinced him that he could make a lot of money by providing a more convenient way to buy the goods.
Scanlan is now the chief technical officer at Coinmover, a Lynn-based business that manufactures "bitcoin ATMs," which are essentially vending devices that trade digital currency. Today, his company's machines may be found at retail stores in Massachusetts, New Hampshire, Connecticut, and Washington state, with each selling an average of $40,000 in cryptocurrency each month. That is less than the cost of one bitcoin, which has recently fluctuated between $44,000 and $52,000. Scanlan, on the other hand, is just getting warmed up. Before the end of the year, he hopes to have 1,250 machines in 18 states.
There is a statewide boom in more convenient ways to purchase cryptocurrencies, with bitcoin ATMs leading the way. According to the industry tracking website Coin ATM Radar, there were approximately 6,000 such machines in the United States at this time last year, but there are now over 26,000, with hundreds more being installed every week.
And that only includes “pure” bitcoin ATMs, which sell cryptocurrency solely. Thousands of standard cash-dispensing ATMs have also been converted to accept cryptocurrency purchases. Then there's Coinstar, the company that manufactures the coin-counting machines found in many US supermarkets. Approximately 7,500 of these machines now sell bitcoin, with a total of 10,000 projected by the end of the year. Researchers at a different site, How Many Bitcoin ATMs, have added these hybrid machines to the mix, estimating that there are over 42,000 bitcoin vending machines in the United States now.
The majority of sophisticated cryptocurrency users purchase their coins online, via websites or smartphone apps. However, the proliferation of bitcoin ATMs makes it simple for first-time purchasers to enter the market.
NCR, a financial technology behemoth, has jumped into the fray. NCR purchased LibertyX, one of the earliest bitcoin ATM firms, based in Boston, earlier this month. LibertyX now primarily develops software to provide cryptocurrency vending capabilities to traditional ATMs and retail point-of-sale systems – the current equivalent of cash registers.
NCR is a global leader in ATM and point-of-sale device manufacturing. The LibertyX acquisition entails more than just the addition of thousands of cryptocurrency-capable ATMs. It may also imply that cryptocurrency will be sold in hundreds of retail outlets, much like candy bars.
It is currently taking place. LibertyX has agreements with CVS, Rite Aid, and 7-Eleven to allow bitcoin purchases at specific locations. A buyer enters the amount he or she wishes to buy into a LibertyX smartphone app, up to $500 each day. On the phone's display, a barcode displays. The customer passes over the cash as a clerk reads the barcode. It is instantaneously credited to the customer's bitcoin account, less a transaction fee of $4.95.
This service, according to LibertyX, is currently available at over 20,000 retail locations. However, many retailers are not aware of this. The Globe contacted four CVS locations, all of which stated that they had no knowledge of bitcoin sales.
“That appears to be a cashier knowledge issue,” said LibertyX co-founder Chris Yim, adding, “we have a lot of volume in Massachusetts.”
To buy bitcoin in a retail store, the buyer must first download the LibertyX app and enter detailed personal information, such as source of income and place of employment. This information is necessary by federal banking regulators in order to prevent criminals from utilising bitcoin to launder illicit funds. It takes many days for the information to be confirmed and for the user to be cleared to purchase bitcoin at a retail store.
However, by merely entering a name, e-mail address, and phone number at one of Coinmover's ATMs, anyone can instantaneously acquire up to $2,500 in bitcoin per day. Those who wish to purchase in higher quantities must offer more thorough information and wait several days for clearance.
A Coinmover machine sells cryptocurrencies other than bitcoin, including Ether, Litecoin, and Dogecoin. On their smartphone, the customer instals a crypto wallet app that displays a QR code. They then place the phone screen towards the ATM's scanner and insert the necessary amount of money. The ATM scans the wallet code from the phone and deposits the appropriate amount of digital currency into it.
It only takes a minute, but it is quite expensive. A bitcoin ATM transaction charge fluctuates between $2.95 and $5.95. In addition, the buyer pays a 10% to 15% premium over the market rate for the currency. For example, a recent $20 bitcoin purchase resulted in only $12.36 in currency after fees and markup.
So, who would be the target audience for these machines? Anyone with a standard bank account can use smartphone apps to buy cryptocurrency at a reasonable cost. For example, using a debit card and a service called Cash App, you can buy $20 of bitcoin for just 45 cents. Other personal financial apps, such as PayPal and Robinhood, provide low-cost crypto trading as well.
Bitcoin ATMs, according to Francisco J. Alvarez-Evangelista, a financial expert at Aite-Novarica Group, may make sense for people in developing nations who have restricted access to banks. However, he admits that the United States is a difficult market to enter because there are so many simpler ways to purchase and sell bitcoin.
Nonetheless, the machines may appeal to US crypto investors who are obsessed with privacy, as well as to anyone searching for a quick and easy way to move money abroad. After purchasing bitcoin from an ATM, a person can instantaneously transfer the money to a relative's bitcoin address located anywhere in the world. Even with all of the expenses, Scanlan claims that “we are cheaper than Western Union in certain places.”
Furthermore, bitcoin purchased through a bank cannot be utilised until the transaction has cleared completely, which might take several days. “You get your cryptocurrency right away with these machines,” Scanlan explained. “That's why consumers are willing to pay a higher price.”
According to a University of Chicago poll, 13% of US adults purchased or sold bitcoin in the previous year. That translates to over 33 million individuals. How many more will join when thousands of retail outlets and ATMs convert to bitcoin trading platforms? We'll find out soon.
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By Crypto PiratesMike Scanlan, a former Tufts Health Plan information security specialist, discovered bitcoin in 2014. “Oh my gosh, this is the future of finance,” he concluded.
Scanlan then attempted to purchase some.
“It was the worst time of my life,” Scanlan recounted. “I tried for a week and a half to get bitcoin.” This convinced him that he could make a lot of money by providing a more convenient way to buy the goods.
Scanlan is now the chief technical officer at Coinmover, a Lynn-based business that manufactures "bitcoin ATMs," which are essentially vending devices that trade digital currency. Today, his company's machines may be found at retail stores in Massachusetts, New Hampshire, Connecticut, and Washington state, with each selling an average of $40,000 in cryptocurrency each month. That is less than the cost of one bitcoin, which has recently fluctuated between $44,000 and $52,000. Scanlan, on the other hand, is just getting warmed up. Before the end of the year, he hopes to have 1,250 machines in 18 states.
There is a statewide boom in more convenient ways to purchase cryptocurrencies, with bitcoin ATMs leading the way. According to the industry tracking website Coin ATM Radar, there were approximately 6,000 such machines in the United States at this time last year, but there are now over 26,000, with hundreds more being installed every week.
And that only includes “pure” bitcoin ATMs, which sell cryptocurrency solely. Thousands of standard cash-dispensing ATMs have also been converted to accept cryptocurrency purchases. Then there's Coinstar, the company that manufactures the coin-counting machines found in many US supermarkets. Approximately 7,500 of these machines now sell bitcoin, with a total of 10,000 projected by the end of the year. Researchers at a different site, How Many Bitcoin ATMs, have added these hybrid machines to the mix, estimating that there are over 42,000 bitcoin vending machines in the United States now.
The majority of sophisticated cryptocurrency users purchase their coins online, via websites or smartphone apps. However, the proliferation of bitcoin ATMs makes it simple for first-time purchasers to enter the market.
NCR, a financial technology behemoth, has jumped into the fray. NCR purchased LibertyX, one of the earliest bitcoin ATM firms, based in Boston, earlier this month. LibertyX now primarily develops software to provide cryptocurrency vending capabilities to traditional ATMs and retail point-of-sale systems – the current equivalent of cash registers.
NCR is a global leader in ATM and point-of-sale device manufacturing. The LibertyX acquisition entails more than just the addition of thousands of cryptocurrency-capable ATMs. It may also imply that cryptocurrency will be sold in hundreds of retail outlets, much like candy bars.
It is currently taking place. LibertyX has agreements with CVS, Rite Aid, and 7-Eleven to allow bitcoin purchases at specific locations. A buyer enters the amount he or she wishes to buy into a LibertyX smartphone app, up to $500 each day. On the phone's display, a barcode displays. The customer passes over the cash as a clerk reads the barcode. It is instantaneously credited to the customer's bitcoin account, less a transaction fee of $4.95.
This service, according to LibertyX, is currently available at over 20,000 retail locations. However, many retailers are not aware of this. The Globe contacted four CVS locations, all of which stated that they had no knowledge of bitcoin sales.
“That appears to be a cashier knowledge issue,” said LibertyX co-founder Chris Yim, adding, “we have a lot of volume in Massachusetts.”
To buy bitcoin in a retail store, the buyer must first download the LibertyX app and enter detailed personal information, such as source of income and place of employment. This information is necessary by federal banking regulators in order to prevent criminals from utilising bitcoin to launder illicit funds. It takes many days for the information to be confirmed and for the user to be cleared to purchase bitcoin at a retail store.
However, by merely entering a name, e-mail address, and phone number at one of Coinmover's ATMs, anyone can instantaneously acquire up to $2,500 in bitcoin per day. Those who wish to purchase in higher quantities must offer more thorough information and wait several days for clearance.
A Coinmover machine sells cryptocurrencies other than bitcoin, including Ether, Litecoin, and Dogecoin. On their smartphone, the customer instals a crypto wallet app that displays a QR code. They then place the phone screen towards the ATM's scanner and insert the necessary amount of money. The ATM scans the wallet code from the phone and deposits the appropriate amount of digital currency into it.
It only takes a minute, but it is quite expensive. A bitcoin ATM transaction charge fluctuates between $2.95 and $5.95. In addition, the buyer pays a 10% to 15% premium over the market rate for the currency. For example, a recent $20 bitcoin purchase resulted in only $12.36 in currency after fees and markup.
So, who would be the target audience for these machines? Anyone with a standard bank account can use smartphone apps to buy cryptocurrency at a reasonable cost. For example, using a debit card and a service called Cash App, you can buy $20 of bitcoin for just 45 cents. Other personal financial apps, such as PayPal and Robinhood, provide low-cost crypto trading as well.
Bitcoin ATMs, according to Francisco J. Alvarez-Evangelista, a financial expert at Aite-Novarica Group, may make sense for people in developing nations who have restricted access to banks. However, he admits that the United States is a difficult market to enter because there are so many simpler ways to purchase and sell bitcoin.
Nonetheless, the machines may appeal to US crypto investors who are obsessed with privacy, as well as to anyone searching for a quick and easy way to move money abroad. After purchasing bitcoin from an ATM, a person can instantaneously transfer the money to a relative's bitcoin address located anywhere in the world. Even with all of the expenses, Scanlan claims that “we are cheaper than Western Union in certain places.”
Furthermore, bitcoin purchased through a bank cannot be utilised until the transaction has cleared completely, which might take several days. “You get your cryptocurrency right away with these machines,” Scanlan explained. “That's why consumers are willing to pay a higher price.”
According to a University of Chicago poll, 13% of US adults purchased or sold bitcoin in the previous year. That translates to over 33 million individuals. How many more will join when thousands of retail outlets and ATMs convert to bitcoin trading platforms? We'll find out soon.
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