Bitcoin is a digital currency that places transactions on a more open, more accessible, more transparent, and more improved system; but this does not mean it is safe. In fact, there are still major risks with Bitcoin withdrawals, which means that one must be careful when making a deposit or withdrawal using this currency.
The ATM is a pretty simple machine. It has an LCD screen where a person types in their phone number and password, and the machine then sends a text message or email with a special code. The person then types in the code at the ATM, and the machine spits out cash. The question is: What sort of machine could we imagine today that would make this process even simpler? What if we could type in our phone number, and have an ATM text us a special code that we could then type into the machine?
If an ATM could send us a code, we could send the code to a friend, and they could text in, giving us their money. The ATM as it exists today isn’t that much safer for privacy than typing in a number and having the person in front of you type it in. That person could just watch you type in a code, and steal your number. Bitcoin solves this problem. For anyone who has Bitcoins, the only information they have to provide is their wallet address, which is essentially a long string of random characters.
Bitcoin ATMs withdrawal deposit cash into your Bitcoin wallet
That wallet address is the link to the Bitcoin that belongs to them and can be linked to no other wallet. Bitcoin ATMs let you deposit cash into your Bitcoin wallet. And, in theory, they could let you take out money, too, giving you Bitcoin in exchange for cash. The first Bitcoin ATM was installed in a shopping center in Vancouver, Canada in 2013.
Bitcoin ATMs have been available since 2014, but adoption has been slow. Part of the reason is the lack of Bitcoin ATMs in smaller, rural towns. Bitcoin ATMs started out as a way to bring Bitcoin to the unbanked and underbanked. However, now, in 2021 Bitcoin ATMs have become so commonplace that finding one even in a small city is easier than finding a pizza shop. Bitcoin ATMs are spreading rapidly. Now there are 14,000 ATMs around the world. Over 750 are run by Bitcoiniacs, a company based in California.