Automated machines that turn traditional money into virtual currency are popping up across the world, The New York Times reported on Monday. But the new Bitcoin A.T.M. is only a way for users to deposit cash and convert it to Bitcoins for their accounts; it does not offer cash withdrawals.
The machine has appeared at Flat 128 in New York City, the first in Manhattan, and is becoming a go-to destination for Bitcoin enthusiasts. Supporters of virtual currency see the growth of these machines as a milestone that will help Bitcoin ATMs become as popular as traditional bank ATMs. Although, for that to happen, customers will have to get used to exchanging real money for digital code, which may be a little unsettling for people who are accustomed to cash or credit cards.
The machines are also available in Brooklyn, Dallas and South Africa, according to Coin Telegraph. There are roughly 200 machines in total worldwide.
The ATMs are providing a fast track to change cash to Bitcoins as the currency gains acceptance. They are also a way to access Bitcoin for those who don't want to deal with online exchanges or who lack a traditional bank account.
"The goal of Bitcoin is to make money digital," Gil Luria, an analyst with Wedbush Securities, told The New York Times. "This is really a temporary way of bridging between physical currency and digital currency."
The ATMs appeal in particular to those who want to maintain the anonymity associated with Bitcoin, he said.
Merchants across the country say that the ATMs also help draw in future customers. Some of them are in coffee shops, where a tech crowd and early Bitcoin adopters are coming in for drinks.
The machine's operator is responsible for loading it with Bitcoins, similar to how a bank makes sure it's ATMs have enough cash for withdrawals. The operator also sets up the transaction fee.
But government agencies are making efforts to regulate digital money, causing concern that online currency could eventually be regulated into extinction.
