Bitcoin ATM: any news after San Diego?

[kik1977]

After the unveiling of the BitcoinATM in San Diego last May (https://bitcoinatm.com/), I heard nothing about it.
Despite some researches, I cannot find anything in the news. Have FinCen's regulations affected it? I guess so..
Do you have any news I wasn't able to find? Were you there in San Diego?

[empoweoqwj]

It was a tech demonstration. The idea that people would go around plonking bitcoin ATM machines around the world and the governments would just let them do so was at best naive, at worst entirely stupid.

There were even headlines flying around like "Cyprus gets world's first bitcoin ATM machine". What a load of tripe.

[kik1977]

It was a tech demonstration. The idea that people would go around plonking bitcoin ATM machines around the world and the governments would just let them do so was at best naive, at worst entirely stupid.

There were even headlines flying around like "Cyprus gets world's first bitcoin ATM machine". What a load of tripe.

I read that article, was a huge amount of BS written there! Still the underlying idea is pretty good.
In my work I do training and one of the topics is Bitcoin; many of the participants are pretty fast in understanding the basics but then I see their main obstacle: they all think the process of acquiring bitcoins is too cumbersome! Opening an account with some exchangers, providing the documents requested, wire-tranfer money.. nothing impossible to do, of course, but very few of them want to go through that..

Also meeting in person (https://localbitcoins.com/) sounds strange to many..

[empoweoqwj]

It was a tech demonstration. The idea that people would go around plonking bitcoin ATM machines around the world and the governments would just let them do so was at best naive, at worst entirely stupid.

There were even headlines flying around like "Cyprus gets world's first bitcoin ATM machine". What a load of tripe.

I read that article, was a huge amount of BS written there! Still the underlying idea is pretty good.
In my work I do training and one of the topics is Bitcoin; many of the participants are pretty fast in understanding the basics but then I see their main obstacle: they all think the process of acquiring bitcoins is too cumbersome! Opening an account with some exchangers, providing the documents requested, wire-tranfer money.. nothing impossible to do, of course, but very few of them want to go through that..

Also meeting in person (https://localbitcoins.com/) sounds strange to many..

Its partly a question of "critical mass" and network theory i.e. the value of the network is equal to the square of the numbers of people in that network. So if there are 1,000 people on the planet using bitcoin, that's only 1,000x1,000 people in the "bitcoin network", so you aren't likely to have a buddy (or buddy of a buddy) using bitcoin. Now if there were 1,000,000 people on the planet using bitcoin, the value of the network would be 1,000,000x1,000,000, you are *bound* to know someone who uses bitcoin, or has a friend that uses bitcoin.

The idea being that if you know somebody who owns bitcoins, you don't need to go to an exchange to get started, or even meet total strangers via localbitcoins, which I'm sure is scary as heck to most people even if they happen to live within the area. They are scared of being ripped off in some way because they are new to the process.

Once the "bitcoin network" is big enough, you will know someone, or know someone who knows someone who has bitcoins already, and you can just buy them straight from that trusted friend. How far we are away from that circumstance, I don't know. But its certainly a lot closer than having ATM machines dishing out bitcoins.

[franky1]

the only way i can see bitcoinATM work financially is this:

they employ 50 franchises (1 per US state) each franchisee pays for the licence of that state under the groups company name of bitcoinATM.

that franchisee then owns the rights to trade, maintain and work within the borders of that state on behalf of bitcoinATM.

bitcoinATM then send them a machine/bunch of machines and set the rates of pay (price above spot) so that the franchisee can see a nice income to recoup its 'buy in licence' and the bitcoinatm headoffice gets enough income to see profit after the bitcoinATM machine costs.

compared to:

having just one company buying all the licences and having to travel the entire width and height of USA for maintenance, installs etc is more expensive venture to attempt

the other plausible option is to speak to existing ATM vendors to add a extra feature on their platform for Bitcoin.

[jdbtracker]

Last I read they aren't bothering with the legalities; They are working as a manufacturer and the licensing for their jurisdiction is up to the customer.

[kik1977]

Last I read they aren't bothering with the legalities; They are working as a manufacturer and the licensing for their jurisdiction is up to the customer.

Sure, that' s the way I inteded it. Nevertheless what Franky said still apply to any company trying to put those ATMs in place and it seems to be a HUGE problem. Not sure whether the situation burocracy-wise is different in other jurisdictions..
Still I wonder if anyone is working on this (trying to get licensed specifically to put BTC ATMs in place)!

[Killdozer]

Sure, that' s the way I inteded it. Nevertheless what Franky said still apply to any company trying to put those ATMs in place and it seems to be a HUGE problem.

What huge problem? FinCEN said they are now regulating bitcoins, so all companies need licenses. Get the license and you are set...

[The Bitcoin Catalog]

Anyone is aware of this bitcoin ATM project from Lamassu Bitcoin Venture?
http://lamassubtc.com/

[kik1977]

Sure, that' s the way I inteded it. Nevertheless what Franky said still apply to any company trying to put those ATMs in place and it seems to be a HUGE problem.

What huge problem? FinCEN said they are now regulating bitcoins, so all companies need licenses. Get the license and you are set...

Huge=time consuming that's what I meant. Since you cannot register once for all but you need to be registered in all the 50 States. Not impossible, that's for sure, but you would agree you need a lot of: money, time.

[kik1977]

Anyone is aware of this bitcoin ATM project from Lamassu Bitcoin Venture?
http://lamassubtc.com/

Yes, although as said before, the problem isn't the technology, that is ready and available with more than one ATM model ready (or almost ready) to be shipped - is regulations.
Still curious to know if anyone has news about an "already established" BTC ATM anywhere in the world..

[the founder]

Unless you want FinCEN picking up ATM 15 minutes after they are installed you have to work out the legalities of it. 

That being stated,  the second that's clear you're going to see Bitcoin skyrocket in value.. that's the killer app...   because people could just trade in an out.. go to walmart.. cash in a few bitcoins get groceries... 

[kik1977]

That being stated,  the second that's clear you're going to see Bitcoin skyrocket in value.. that's the killer app...   because people could just trade in an out.. go to walmart.. cash in a few bitcoins get groceries... 

That's exactly why I am curious to find any news about it...

[mgio]

People understimate how difficult it is to get these licenses and how much they cost.

It can cost millions per state and a lot of record keeping must be kept.

The only way the bitcoin ATM could happen is if a large bank that already has ATMs (Bank of America, Citibank, etc) decides to get involved.


In other news, I'm still waiting for bitcoin debit card!

[BCB]

People understimate how difficult it is to get these licenses and how much they cost.

It can cost millions per state and a lot of record keeping must be kept.

The only way the bitcoin ATM could happen is if a large bank that already has ATMs (Bank of America, Citibank, etc) decides to get involved.


In other news, I'm still waiting for bitcoin debit card!

Actually it doesn't.

California is one of the most expensive states:
(d) A licensee that sells or issues payment instruments or stored
value shall maintain securities on deposit or a bond of a surety
company in an amount of no less than five hundred thousand dollars
($500,000) or 50 percent of the average daily outstanding payment
instrument and stored value obligations in California, whichever is
greater; provided that such amount shall not be more than two million
dollars ($2,000,000).
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=02001-03000&file=2030-2043

New York, Texas Illinois and Florida are also expensive.

South Carolina and Montana do not require Money Transmission Licenses.

[Nagle]

Anyone is aware of this bitcoin ATM project from Lamassu Bitcoin Venture?
http://lamassubtc.com/

That's just a vending machine for Bitcoins.  It won't pay out cash for them.

[Funky Al]

Also meeting in person (https://localbitcoins.com/) sounds strange to many..

You don't have to meet up, you can do a bank transfer and they send the Bitcoin to your online wallet, it's then just a case of sending it to your local one.

[joesmoe2012]

Remember, for FinCEN you have to know your customer as well.

How are you going to verify and ensure the guy buying $20 worth of bitcoin is who he says he is?

[BCB]

How do you know the drug dealer doesn't have 20 mules each with 1000 20 dollar bills lining up at your machine to purchase bitcoin.

[QuestionAuthority]

Bitcoin ATM. lol

After all this time I still laugh when I think about it. Maybe they can name their ATMs "the Ellet". rolf