Bitcoin is a cryptocurrency that has gained prominence across the globe. It is a worldwide payment system that works by having a decentralized digital currency which works without any centralized bank. It is a form of payment that specifically involves only the sender and receiver of the payment without any middlemen or intermediaries. The transaction gets verified by the aid of cryptography which uses network nodes. The information is recorded in the public distribution ledger known as Blockchain. The demand and rise of bitcoins in the world have fuelled several easy to use bitcoins ATMs with a lot being set-up as well. This post explains everything that you need to know about bitcoin ATMs.
What is a Bitcoin ATM?
A bitcoin ATM or Bitcoin Teller Machine as it is also known allows an individual to sell bitcoins for cash or buy them from cash. They are kiosks in connection with the internet which allows them to undertake bitcoins for cash or vice versa transactions. They directly connect a user to a bitcoin exchange. Also, they can be used to send bitcoins to a particular address.
Transaction details must be kept in an updated excel file to safeguard against thefts. Which version of excel do I have? Should be answered to updated and prevent any losses of a sort. Bitcoin ATMs are duly expensive with respect to online transactions due to the infrastructure involved in construction and installation. Robochain has manufactured most of the bitcoin ATMs at the cost of $15,000.
How Do They Work?
Transaction in a bitcoin ATM is through a simple 3 step method. The first step basically involves scanning of the identification details of the user which then the ATM verifies from its database. Then the individual needs to insert some amount of cash and generate a QR code, i.e., the code with several black and white lines. The person can then use the ATM to send bitcoins to the desired place. The procedure for selling bitcoins is nearly same with the sole exception of clicking the sell tab and linking the bitcoin wallet.
Other Things To Know
Some bitcoin ATMs come up with a paper wallet which works as a bearer instrument in bitcoin transactions. Most of the ATMs work for 24/7 time frame for the comfort and ease of the users. Some major companies with Bitcoin ATMs around the world are BlockchainBTM, National Bitcoin, BitcoinPlug. There is also a huge cap on the amount that can be transacted in a single situation.
Outlook
The prominence of bitcoin ATMs is going to continue for sure with the ever-expanding interest and usage among the people. People are going obsessively over the bitcoin craze with buying and selling becoming a part of their daily lifestyle. More than a million people use bitcoin ATMs across the globe. No government interaction, banks, intermediaries have made bitcoins a currency in demand with about 100,000 sellers allowing payment in them. This growth is going to expand more and so, will the number of bitcoin ATMs.