Category Archives: BTM

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Bitcoin ATMs, Making Bitcoin Adoption A Reality

Bitcoin ATM, Making Bitcoin Adoption A Reality

Almost six years since the first of Bitcoin ATM (BTM) was installed at a coffee shop in Vancouver, reports now have BTMs numbering a few thousand across the globe. BitcoinNews.com explores the inconspicuous growth in both the adoption of Bitcoin and its related accessories and pursues an angle in the opportunities as well as risks in the emerging BTM industry.

With over 5,000 Bitcoin ATMs (BTM) now installed in about 90 countries across the globe, the subject of Bitcoin adoption can now be viewed from a different light. BTMs are now available even in convenient stores in the countries where they are installed, giving residents access to both awareness, and the spending of Bitcoin.

In terms of everyday use, one might be tempted to think Bitcoin lags in its ultimate purpose as a peer-to-peer digital payment system, considering how 10 years on and not every store in the world may have a boldly printed ‘Bitcoin accepted here’ over their counter. Farcical or not, certain segments of the media continue to describe Bitcoin as purely speculative and having no currency value. Meanwhile, the daily exchange of Bitcoin for services and goods continue to take place, and no, not only on the dark web. The major scare here is the volatility of the Bitcoin market on crypto exchanges which seem to stall merchant adoption, not helped at all my developments of various regulatory frameworks.

Notwithstanding, the companies that make these BTM machines, along with service providers, continue to explore new opportunities where these machines can be installed. The inevitable logical conclusion here seems rather obvious – Bitcoin isn’t going anywhere, not anytime soon at least, not when massive capital investment is involved.

They Come in all Shapes and Sizes

Friends are nearby. Connected #Delaware, if anything ♥ ️#cryptoATM #ATM #bitcoinATM pic.twitter.com/Sw3MZXicjb

— Nano Bank (@NanoBank) September 2, 2019

BTMs are physical and as far as awareness goes, they can hardly go unnoticed and can easily pass as a regular ATM, but upon approach, the features do seem a little bit different. And now, the startled new user becomes curious if they aren’t familiar with such technology or if they had only just read about them on the internet – they can now physically interact with this disruptive money system. See where this is heading?

So far, BTMs as an important component of the Bitcoin ecosystem is the most expressive and relatable aspect – arguably second to mining; as well as a better understanding of the function of Bitcoin and how to use it. To the dabbler, everything else about Bitcoin and cryptographic consensus may appear as gibberish!

Opportunities in the BTM Industry

Is investing in a BTM worth it? Good question. The fuss about digital currencies and the antagonistic nature of stalling regulations should make a person wonder why anyone would consider an investment in BTM. In late June, leading international convenience chain store Circle K, had 20 BTMs installed in its US stores thanks to its partnership with DigitalMint. Are BTMs the new rave? Or are Bitcoins gaining unprecedented attention and no one sees it?

BitcoinNews.com had earlier reported the number of BTMs worldwide reached 5,000 for the first time, noting a total of 150 installations at an average rate of 6 per day for the month. And now, in just over two months, about 489 new installations have brought the current sum to about 5,495 Bitcoin ATMs worldwide.

Taking the least cost to purchase a General Byte two one-way Bitcoin ATM which goes for around USD 2,800 (do note that costs could go as high as USD 11,000); a rough estimate puts the global valuation of existing BTMs at about USD 15.3 million. Well, yes, this may be a far cry from the Bitcoin valuation which is around USD 176.8 billion, but the point is in the growth potential in the BTM industry.

Source: https://coinatmradar.com/charts/top-operators/

According to ATM Radar, the top 10 BTM operators currently run 2,162 machines across the globe which account for 39.3% of the population, while the remaining 60.7% equivalent to 3,333 BTMs are controlled by 541 operators – not well decentralized, eh? But the picture is rather clear here: the BTM industry is on the fast lane and as interest in operation grows continuously, perhaps down the line of world-scale adoption, there might be one at every street in major cities. And that would be a dream come true for Chris Yim, CEO of LibertyX who described their more than 1,000 operational BTMs as a natural evolution. In pursuing the future ambition of creating street-level access to Bitcoin through user’s debit cards, he said:

“Our goal is to make Bitcoin available on every block in America.”

How do Bitcoin ATMs work?

Bitcoin is designed to be a private cryptocurrency, and helps with privacy issues. Users without a bank account can buy Bitcoins on some of the BTMs with the 2-way designs. As far as operating these machines go, they are quite easy to use and with just a few steps, anyone can begin to transact using Bitcoin. BTMs, unlike the conventional ATM, allow users to purchase Bitcoins in exchange for fiat/paper currency.

The general steps involved in a BTM transaction include identity verification. It is not applicable to all BTMs, however, due to regulatory concerns, it’s becoming a prevalent option for most providers. The next step is to provide a BTC address where the Bitcoins will be sent to once purchased. This is easily done by scanning a barcode from a mobile wallet or a printed paper wallet. Alternatively, some providers provide wallet addresses for users and all they do is allow the user to print a paper wallet from the BTM similar to how ATMs issue receipts when transactions are completed.

Security and Risks in the Bitcoin ATM Revolution

The threat against Bitcoin ATMs and their users are quite real and, as mentioned earlier, Bitcoin is designed to be private, hence, to the financial regulator, this spells red flags all over it. So the first concern is how the government treats Bitcoin, and that has spilled over to its accessories – both in the mining industry and BTM industry as well – with recent developments in Nevada seeing a request for BTM licensing.

Although some operators such as Coinsource already have a New York Bitlicense which allows them to legally offer cryptocurrency exchange and custody services, however, this license is hard to obtain and still limited per jurisdiction. And in jurisdictions such as India were extreme measures have been taken against cryptocurrencies, Bitcoin ATMs, and operators were not spared.

More so, there are issues, from simple gimmicks to complex ATM frauds, and at times, glitches in the encryption framework can make BTMs extremely generous, that question the security measures adopted by BTM manufacturers. Though nothing peculiar, as worse scenarios have been observed with regular ATMs, however, these situations tend to compound the problem for BTM operators and users.

The Future

If we must speculate on the future industry of BTMs, it has to be done by looking through the current facts; the rise in Bitcoin ATMs, the installation at convenience stores, and the legal frameworks to provide for more anti-money laundering watch. Clarity seems to set in as people demand more secure and faster means of transacting. Be it at the coffee shop, the grocery store, or while refiling a tank at the gas station, merchant adoption of Bitcoins and BTMs are real. Though slow, it’s an eventual process set to transform the use case model of cryptocurrencies.

 

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Bytom Development Challenge Kicks Off First Season with 260,000 BTM Prize Pool

Bytom Development Challenge Kicks Off First Season with 260,000 BTM Prize Pool

As a public blockchain protocol, Bytom is launching its first development challenge. With the aim of accelerating the technical development of blockchain and attracting more talents into Bytom development ecosystem, a prize pool of 260,000 BTM is set for winning teams. In addition to token rewards, outstanding projects will also have access to incubation and investment.

Bytom Blockchain Protocol (referred to as Bytom) is an interactive protocol of multiple byte assets. Heterogeneous byte-assets (indigenous digital currency, digital assets) that operate in different forms on the Bytom Blockchain and atomic assets (warrants, securities, dividends, bonds, intelligence information, forecasting information and so forth that exist in the physical world) can be registered, exchanged, gambled and engaged in other more complicated and contract-based interoperations via Bytom. Bytom’s mission is to create diverse assets and programmable economy.

Challenge theme

Customized: Users can come up with any topic to participate in the challenge but must develop through the interface and smart contract of Bytom.

Projects scenarios (including but not limited to):
• Supply chain, cross-border trade, logistics, supply chain finance, micro-financing;
• Judicial preservation, copyright protection, and contract;
• Product traceability and data marketing;
• Security computation, data audit, and financial risk control;
• Blockchain tools such as blockchain health monitoring, contract security analysis, etc.

Extra bounty

The requirements above must first be met before taking into consideration several other themes as listed below for additional rewards.

Option 1: Distributed off-chain storage
You need to integrate with extra distributed storage (such as IPFS and BigchainDB) and should deploy it in the core part of your project (not added roughly). Extra reward: 20,000 BTM.

Option 2: Decentralized Identity System
Develop a DID system based on Bytom. Extra reward: 50,000 BTM.

Prize

• First prize*1 : 100,000 BTM
• Second prize*2 : 50,000 BTM
• Third prize*3 : 20,000 BTM
*The winners of first prize and second prize will be selected to participate in the finals of the Bytom development competition.

Schedule

• Challenge period: February to May 2019
• Application deadline: 1st April 2019
• Online developing workshop: 1st March and 20th March 2019
• Deadline for the first submission: 5th April 2019
• Deadline for final submission: 1st May 2019
• Reward: 2nd to 7th May 2019

Requirements

• Each participant group should have no more than five members. Individual participants can team up freely, but can only join one group and cannot take more than one entry into the competition
• Anyone belonging to the host organization cannot take part in the competition

Project requirements

• Combine Bytom technology with other technology
• Your project must be completed independently. No cheating or infringement of intellectual property is allowed. Entrants failing to doing so will be disqualified
• After being checked by the Organizing Committee, your project will be selected to enter the competition for further improvement

Judging rules

Blockchain value
• All entries must be built on smart contracts or interfaces of Bytom while fully embodying the value and advantage of blockchain technology

Technology implementation
• The smart contract projects should feature rational design and complete functional design
• Its stable operation is absolutely guaranteed for efficiency and quality
• It is designed with sufficient safety and protection mechanism

Commercial value
• If entries present great commercial value, they can be commercialized directly as representatives of industry application for potential profitability

Creativity
• Compared with mature solutions in the industry, entries should illustrate innovation and creativity with better performance

Product design
• The interactive design should be reasonable
• Easy to be understood and used
• Excellent user experience

Project register and submission

• Register your project: http://blockchain1.mikecrm.com/9Lzr76D and submit your codes to: https://github.com/Bytom-Community
• Projects should be completed functionally, you can also submit package or deployed version

For more details of this development challenge, you are welcome to check the tutorial video at https://www.youtube.com/watch?v=jIv0VvIAUuM

 

Learn more about BYTOM – https://bytom.io/
Read the BYTOM Whitepaper – https://bytom.io/wp-content/themes/freddo/book/BytomWhitePaperV1.1_En.pdf
Learn BYTOM on GitHub –  https://github.com/Bytom/bytom
Connect on Facebookhttps://www.facebook.com/bytomofficial/
Chat on Telegramhttps://t.me/BytomInternational
Reddit – https://www.reddit.com/r/BytomBlockchain/
Read about BYTOM on Twitterhttps://twitter.com/Bytom_Official
Join on Discord – https://discordapp.com/invite/U3RSYr5
Medium – https://medium.com/@cloudmoolah

 

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Image Courtesy: Bytom

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