Technology has brought about a big change in many different fields and business is no exception to that. It started when paper money was replaced by credit and debit cards. Now, we have more than a dozen varieties of digital currencies at our disposal. Although they may have to overcome many issues before they can replace traditional money, they have made already a huge impact.
Among many different currencies, Bitcoins is the most popular and is already being used in some places. It is also traded. It is a form of electronic money that is supported by a software-based payment system. There is no central regulatory authority and the system works on peer to peer basis. It is the first crypto currency that is fully implemented. It uses strong cryptographic techniques to secure the transactions but still it had to face some security issues in the past.
Bitcoins are stored on a computer system and this process is known as mining. Users can trade bitcoins to purchase a product or service, and even exchange it for real money. Sending and receiving Bitcoins has not been an issue for some time but you will have to pay a fee for that. The rates of Bitcoins fluctuate regularly and are made known publicly. The transactions are recorded in a ledger known as block chain. It is also distributed pubicly to authenticate ownership.
Mining is a process to store Bitcoins and keep the records of the transaction. Another duty of miners is to keep the block chain consistent and complete. They have to record every new transaction made and combine similar ones to form a block. Information in the new block is used to connect the new block with older blocks. SHA-256 cryptography is used by Bitcoins of the previous blocks.
Miners who are able to find the next block successfully are rewarded with a transactional fee and newly created Bitcoins. A special transaction needs to be made to receive the reward, which is known as Coinbase. These Coinbase transactions play an important role in tracking all the Bitcoins in circulation at any given time.
Similar to paper currency, Bitcoins can also be withdrawn through ATMs but they are specialized ones and different from normal ATMs. Basically, it is an electronic device which helps you to conduct a transaction using Bitcoins without the need for any human involvement. Some Bitcoins ATMs also offer the facility to purchase Bitcoins by paying cash.
It is a recent phenomenon with the first Bitcoin ATM starting operation late last year in Vancouver, Canada. Since then, many Bitcoin ATMs have stated to crop up in different parts of the world. The Number of Bitcoin ATMs is still quite low and you will have to see a map to find one. The map which shows Bitcoin ATMs is known as Bitcoin maps.
Laws Governing Bitcoin ATM
These machines operate under different laws. There are different laws applicable in different countries regarding the operations of Bitcoin ATM. Laws are still in its development stage in many countries but they are fully implemented in a few countries, such as the US. Different bodies responsible for regulating and monitoring money are responsible to make the laws regarding Bitcoin ATM which can be implemented regularly.
The popularity of Bitcoins cannot be denied but some issues, such as security issues and no regulatory authority to monitor and manage the digital currency are some of the biggest hurdles in its growth as the future of business. Bitcoin ATMs can take cross border e-commerce to the next level and it has the potential to do that
It could prove to be helpful for those who want to shop online but don’t have a bank account or credit card to make payments. They could use Bitcoins to make payments anywhere in the world because it is accepted everywhere. Travelers who visit different countries will not have to face any issues regarding converting currencies.
They will not need a bank account or credit card for that matter. If they have some cash to spare, they can also convert it into Bitcoins. There are many other uses of Bitcoin ATM but before it could control and find a solution to security and other issues that plagues Bitcoins, things mentioned above could not become a reality.