Hi Guys!
They have a Bitcoin ATM here in Palm Springs, and so while I was on vacation, I decided to check it out! In the video, I show you exactly how it works and actually interview the shop owner on why he decided to bring it in, and how much traffic he gets because of it.
How Does it Work?
It was actually really straight forward. It was a cash only machine - and so if you want to purchase Bitcoin, you will need to bring cash with you. You can also either come with the private key for your bitcoin wallet ready to go - or start one right there on the spot. If you choose the latter - you will need to download a bitcoin wallet app on your phone and totally set it up.
There was also an option to buy Litecoin. There was an entire " alt-coin" section, and so I imagine they will add more alt coin options in the future.
Another important distinction is that you can use this ATM to buy bitcoin, but not to sell it. You can't cash out bitcoin and walk away with a pile of bills from this device.
Increased Anonymity?
A lot of people want to use a Bitcoin ATM to increase the anonymity of their transactions. The ATM had both a camera and a thingerprint reader - but an interview with the owner enlightened us on a few of these details. He had the thumbprint reader turned off, and the "camera" looking object was actually a QR reader.
At first, it seemed like between the thumbprint reader and camera, it wouldn’t be very anonymous. With those features turned off though - it seems like the transaction is pretty straight forward. I imagine what state or country you are in may have different rules around the amount of information required to use the ATM. It will be interesting to see how that starts to play out over time.
Are there Fees?
There was a very small fee of $1 to use the machine. As you see in the video though - the trading price of Bitcoin is inflated. It read over 10k, and bitcoin is currently sitting at closer to 9k. You are paying a bit of premium to use the ATM, but the fees themselves are quite low.
Interview with the Shop Owner
He does not physically own the Bitcoin ATM, but he allows it to be in his store and it is completely run and operated by someone else. In my interview with him, I asked him why he decided to bring it into his shop. Even though he didn't seem to understand a whole lot about bitcoin and blockchain technology in general, he understands that it is a changing and evolving technology that people are excited about.
His hope as a business owner is that by putting this in his shop - people will come there specifically for the ATM, and then buy a few things while they are there.
Being Nerdy on Vacation
We don't have any Bitcoin ATM's where we live, and so finding one in Palm Springs was really exciting! Our friends were making fun of us, but it was a really fun opportunity to check one out for the first time and play around on it. I hope you enjoyed watching the video and checking one out too!
Have a great night!
xo, Lea
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