Ever since the release of Bitcoin in 2009, cryptocurrencies have been gaining acceptance as an alternate form of currency that can be used in financial transactions. In addition to Bitcoin, many other cryptocurrencies have been introduced in recent years. These currencies exist in limited quantities and are outside of the traditional financial system. Cryptocurrencies are validated and timestamped by miners. In the process, they are added to the ledger. Transactions are recorded through the use of a blockchain.
There is a growing industry that allows users to access cryptocurrency exchanges through the use of a crypto ATM. These are generally kiosks where users can exchange cash for cryptocurrency. Users can also receive cash for their cryptocurrencies at these machines. When purchasing cryptocurrency, users receive a paper receipt which they can then scan to a mobile app to update their cryptocurrency balance. There are now close to 4,000 Bitcoin ATMs across the world, and the number grows monthly. The number of these ATMs in the United States is rapidly approaching 1,000 as new machines are added frequently.
CoinFlip is one of the leaders in the nascent Bitcoin ATM industry. According to its chief executive officer Daniel Polotsky, blockchain has the potential to change the way that many industries in the world do business. According to Polotsky, Bitcoin is a permanently relevant currency and users should be looking for any opportunities to buy Bitcoin at a discount.
Polotsky was inspired to start a Bitcoin ATM company after experiencing difficulty transacting at one of the earlier Bitcoin ATM machines. After that transaction, Polotsky was forced to find other ways to acquire Bitcoin, including physical meetings with sellers. CoinFlip’s ATMs are designed to replace the role of human trader by automating transactions that would have previously been conducted manually.
CoinFlip’s ATMs transact in several different cryptopcurrencies. In addition to Bitcoin, these machines handle transactions in Ethereum, Dash and Litecoin as well as other cryptocurrencies. The number of CoinFlip ATMs is approaching 120, and the company is in expansion mode. Even those who do not live anywhere close to a CoinFlip ATM can purchase cryptocurrencies through CoinFlip through a wire transfer.
According to Polotsky, the use of a Bitcoin ATM to purchase cryptocurrency helps widespread adoption of these currencies by making them more accessible to the general public. Without these machines, users have long wait times to gain approval to transact in cryptocurrency. The differentiating factors in favor of CoinFlip are their competitive exchange rates and their continuous customer service.
Although the future for this industry is bright, there are many challenges that the cryptocurrency industry faces as it grows. The legal and regulatory landscape is still in development, and companies in this line of business must always cope with sudden and unexpected changes. CoinFlip must either obtain regulatory approval or a legal opinion in order to do business in a given state. In addition, supporting the growing network of ATMs requires cashflow and technological capacity. Nevertheless, according to Polotsky, CoinFlip is well-positioned in this industry due to its workforce. CoinFlip has a young, aggressive and savvy workforce that helps is compete and grow. The team has learned from its mistakes as the company has progressed.