When the banking industry began to make electronic fund transfers possible (credit, debit) they needed a bridge solution that brought the paper-cash economy to the electronic-cash economy. ATMs seem to have been one of the most effective solutions: you have a bank account with numbers representing imagined value in it, but you can still withdraw "real" cash at any one of thousands of locations.
Given that PayPal just shut CoinPal down, I assume we know this is going to happen to others as well. What is our bridge solution?
BitCoinMe.com does cash-for-bitcoin (and vice versa) at your doorstep. The great thing about cash is it has no middle man that can get in the way of an exchange. If we scaled this up to have in-person exchangers in every city, this would provide a partial solution to the problem. But with the pros come some cons:
1. Cash delivery in any quantity over $50 (on a regular basis) is something best suited for men with guns and armored vehicles. We don't want bitcoiners to be jumped, hurt, or killed.
2. Having someone come to your door removes anonymity from the transaction.
What would it take to create a bitcoin ATM?
Suppose a person could visit the ATM, enter a bitcoin address (via USB? via an aliased email address? via some other shortened method?) and then insert cash. The cash is stored in the ATM for collection later, while the bitcoin address is immediately credited at current exchange rates.
On the flip side (withdrawal), suppose ATMs have addresses accessible on the internet (like an email address, e.g. email@example.com
). You send bitcoin to the address, and then receive a payment receipt with a 5 digit PIN (this could be on your smart phone, or at home on the computer). Then you turn to (or go visit) the ATM and punch in the PIN. Out comes cash, rounded down to the dollar, at current exchange rates.
Can we do this? Should we?
Thing is that they need to be simple as possible can be. I watch one video, when they had so much troubles, that took lots of time to make a transactions. That can push off many people. I do belive, soon will be perfect AMT out there.