A Bitcoin ATM looks real similar to a regular ATM that spits our paper money. Just so you know, when buying Bitcoin at the ATM, cute little gold coins will not drop out into your hands. Certainly, you at least understand that Bitcoin is a completely digital currency. The value is represented digitally and transferred digitally to the recipient. But that’s what makes it revolutionary. This is why we embrace it. And it is most definitely the currency of the future. Plus, It’s anonymous and discreet, without governments or banks involved at all. It is a safe and secure way of exchanging money globally.
People are always uncomfortable with change or something that they don’t fully understand. But imagine the very first regular ATM. How weird must that have been? Digital currency makes people nervous because they can’t hold it. But do you ever hold the money spent on a credit card. And you probably pay your bill online from your bank. And the money that went into the bank may have even been Direct Deposit.
Sure, we all love a roll of Benjamins. But Bitcoin for most is a safe, secure and discreet way to pay an amount. And that’s what we’re talking about. Buying Bitcoin at an ATM for an anonymous purchase.
Some machines do ask for identification
Some of the machines ask for your government issued identification, but others slip through the cracks of US Department of Treasury regulations. In 2013, the Financial Crimes Enforcement Network was assigned to policing Bitcoin ATMs for money laundering and funding terrorism. They officially classified Bitcoin ATMs and exchanges as Money Services Businesses (MSB) or money transmitters. This requires them to adhere to the Bank Secrecy act of 1970, keeping identifying information on all customers. But you can rest assured, your Bitcoin purchase is still anonymous as is the recipient; wallets are not attached to identities. However, this privacy doesn’t come free. Bitcoin ATMs typically charge between 7-10% for buying/selling bitcoins, a fee worth paying for some of us.
There are numerous types of machines
There are numerous manufacturers of Bitcoin ATM machines. They are all quite simple to use via touch screen. You will need your cell phone available, because they all use text message verification to start. Also, be sure to have your identification available, even though many do not verify. Coinsource machines allow you to do the verification step ahead of time online, which will save time standing at the machine. Specific details on the Bitcoin ATM manufactures can be found at CoinATM Radar. Our blog covers most of them that are located in the US.
Back to Banking on Bitcoin