Who would have thought or considered that bitcoins or any other digital cash would have their own bitcoin ATM? This is just the first of the many steps happening for bitcoin in the coming years. This has certainly jumped into the mainstream market and has made a difference into our financial transactions.
Bitcoins took yet another step toward mainstream use on Tuesday, as the world’s first ATM converting the virtual currency to conventional cash, and vice versa, was introduced at a coffee shop in Vancouver, Canada. The machine will be operated by the bitcoin exchange companies Bitcoiniacs and Robocoin, and will perform transactions after a palm and ID scan.
Bitcoin, which made headlines as a method to buy illegal products on “deep web” portals such as the recently-raided Silk Road, is also gaining prominence among high street stores in Western Canada. Bitcoiniacs reported that it was selling the currency, valued at $12 in January, for around $200 today. That is quite a large sum as compared to how it is a few years back.
What’s being billed as the world’s first Bitcoin ATM is set to enter service next week in Vancouver, according to local operator and broker Bitcoiniacs and Nevada-based manufacturer Robocoin. The $18,500 ATM will debut in downtown coffee shop Waves as the first of five Bitcoin machines that will be deployed across the country.
They’ll trade the increasingly popular digital currency for Canadian dollars and vice versa, with a CAD $3,000 daily limit ($2,870) for each user. There is a general buy process at all bitcoin ATMs:
- Verification step (optional and may vary substantially depending on machine’s type)
- Provide bitcoin address for deposit (optionally can be generated and printed/emailed at some ATMs on the fly, but better to have your own with you before using a machine)
- Insert cash into the ATM
- Confirm operation (bitcoins sent to your bitcoin address at this moment)
This process may vary from ATM to ATM, and this is what we describe for every of the mentioned above bitcoin ATM types. You have to know the ATM type to proceed to the next steps. It is important to understand that even when machine’s software/hardware support compliance procedures, they are not necessarily activated, as it depends on the operator choice of every particular machine.
That is why the same type of machine might have different verifications and limits set up. You have to know and understand how this works. The process of buying bitcoins at this ATM was split into two main steps: very first visit (account registration process is more complicated) and all the rest purchases (account is already created, the process is simpler and faster). The introduction of bitcoin ATMs is a fresh concept that is out to make the necessary changes to make the financial economy robust and sterling. It is a new concept but this is established with the quest to make our financial transactions smoother and hassle-free for everyone.