Bitcion ATM [video]

[Bitcoin Swami]

Haven't seen this posted yet.  Pretty dam awesome.  2 short parts.

http://www.youtube.com/watch?v=1h42QUOugIQ

http://youtu.be/FqpSZDMu5jY

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[BitVapes]

this will change everything, imo

I wish I had some

[nmat]

Any more details? Can they just buy machines and put them anywhere? If the machines aren't properly secured the website hacks will come to real life...

[hugolp]

Looks amazing.

[evoorhees]

Are there any details of the business plan behind this? Is this guy funding himself, or is this larger than that? Where will these be rolled out?  There are a thousand questions... but this is undeniably awesome. I would be overloaded with joy to see one of these in a corner market in Manhattan.

[ffuentes]

But I wanna see action!

[bbit]

so sweet so sweet!

[the joint]

Um...promote?

[the joint]

Couldn't get the video to work but if it's what I think it is, the community strikes again! Bravo.

10-15 ATMs in 6 weeks, 250 or something worldwide in 6 months.

[Bitcoin Swami]

Maybe we can get jobs servicing and getting them running in our areas.  Chances are that guy reads the forums like everyone else. 

[NothinG]

Couldn't get the video to work but if it's what I think it is, the community strikes again! Bravo.

http://keepvid.com/?url=http%3A//www.youtube.com/watch%3Fv%3D1h42QUOugIQ&fromsearch=1

Maybe we can get jobs servicing and getting them running in our areas. 

It will probably work like a franchise.
You pay money to have one in your area...but the users fund the machines.
As he states in the video "for the first 10-15 machines, the users will be putting the USD {etc} in"...not 100% quoted...but the idea.

[SmokeAndMirrors]

My biggest concern is will these ATM's be an exchange service (similar to MTGox, tradehill, etc.) or will the bitcoins be transacted instantaneously at a set price by the owner of them. Even if the price is set to reflect website exchanges prices, how does the end-user of the bitcoin ATM's plan on keeping up with the amount of withdrawals people may make?

If the ATM's plan to use one of the existing web exchanges, this questions is irrelevant.

[the joint]

My biggest concern is will these ATM's be an exchange service (similar to MTGox, tradehill, etc.) or will the bitcoins be transacted instantaneously at a set price by the owner of them. Even if the price is set to reflect website exchanges prices, how does the end-user of the bitcoin ATM's plan on keeping up with the amount of withdrawals people may make?

If the ATM's plan to use one of the existing web exchanges, this questions is irrelevant.

Yeh, I'm sure the ATM will be connected to the Internet just like any other ATM that processes ATM withdrawals.  I assume it will constantly update the going rate.  Actually, I think it'd be nice if it went by a 7 or 14 day average as this would inherently stabilize the markets.  In other words, the ATM would act as a counterbalance to market volatility, and the markets would act as a counterbalance to ATM volatility.

Otherwise, you'd hear a lot of "Shit!  Remind me to NEVER AGAIN go to the Bitcoin ATM on the weekends!"

[SmokeAndMirrors]

My point is that these bitcoins and/or $$ won't just appear out of thin air when a user engages in a transaction. There's got to be preset funds stored in the machine or some database server.

I'm assuming this guy isn't a millionaire and doesn't own 10 TH of the total allocated hashing power this network holds, so he would most likely run out eventually unless he was adding more of his own funds constantly. The only other way I could see this working is if this was an exchange.

Imagine the guy who builds these puts $10,000 USD and 5000 bitcoins in the database to start. Let's say 1000 people suddenly withdraw 5 bitcoins each on the first day that these machines are setup and ready to go. There will be a message put in place stating that "We are currently mining more bitcoins for your transactions, come back later!" How disappointing would that be assuming the ATM ran out of either USD or BTC?

[the joint]

My point is that these bitcoins and/or $$ won't just appear out of thin air when a user engages in a transaction. There's got to be preset funds stored in the machine or somewhere else.

I'm assuming this guy isn't a millionaire and doesn't own 10 TH of the total allocated hashing power this network holds, so he would most likely run out eventually unless he was adding more of his own funds constantly.

There'd probably have to be an initial reserve.  Then, I would assume the deposited cash translates into ATM Bitcoins.  Regular ATMs have withdrawal limits, and I would think the Bitcoin ATM will have similar limits.

Edit:  Don't forget, it's not like there will suddenly be 10 million Bitcoin ATMs.  He's starting with like 15.  There will be a couple people using them, but the point is, more people will spot them.  If the ATM has a fee, then the small number of users will increase his total profit without risk for runs on the ATM.  This will allow him to then put this profit into more ATMs, more people will see them, more people will use them, and he will collect more fees as profit.  Then, more ATMs, more people, more use, more fees, repeat, repeat, repeat.

[Bitcoin Swami]

Seems pretty easy to service too.  I'm sure everything can be monitored remotely which is pretty pretty cool.  If it needs more bitcoins, just send them from your beach chair.

[SmokeAndMirrors]

I'm not trying to argue that this wouldn't be a favorable endeavor for anyone. I think it's a great idea.

I would just hate for these to cause a flood of users and drain the ATM's account similar to how the bitcoin faucet ended up.

[the joint]

Seems pretty easy to service too.  I'm sure everything can be monitored remotely which is pretty pretty cool.  If it needs more bitcoins, just send them from your beach chair.

Lol, then please look the other way while I walk off with the ATM.  If nobody knows about Bitcoin, nobody will know what the hell I'm carrying.

[the joint]

I'm not trying to argue that this wouldn't be a favorable endeavor for anyone. I think it's a great idea.

I would just hate for these to cause a flood of users and drain the ATM's account similar to how the bitcoin faucet ended up.

Yeah, I hear ya, I just don't think that's at all likely.  I'd say there's probably at MOST 100,000 Bitcoin users, and maybe only 30% of those users make active trades in a month.  So, assuming maybe 30,000 people worldwide for 15 sparsely distributed ATMs.......even 250 ATMs.....I don't think it's likely.  I know I wouldn't drive more than 30 minutes to find one.

[Sukrim]

Maybe you could just license + buy one and set it up outside your front door then?

I'm more concerned about:
User interface
and
Physical security

If someone rips open a bitcoin ATM, they cannot jsut steal the money inside, they can also rob the bank (as the ATM will either have a bitcoind node running or at least some credencials to a remote node).