Bitcoin ATMs: The Unsung Heroes of Mass Adoption, w/ Chris McAlary from CoinCloud

CRYPTO 101
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Automatic TRANSCRIPT

Lot of the people listening to this podcast maybe you have not bought their first crypto yet. And one of the reasons is because it's too hard. It's challenging where do you go? Who Do you trust but? If you look back. It's really fascinating to Bitcoin ever got to be where it is today because essentially invite only in the early days when you got. To know a guy who knows a guy who has some to get it And then you gotTa Call Phone Numbers N E mail address pick a meeting location outside of a seven eleven whichever the least shade seven eleven is. And Walk Up to a guy and be like, Hey, you got bitcoin. And that's really how it was truly appeared. Appear cash kind of system. So. You tried the mining thing is just not cost effective trading firms really really hard. You have to have specialized knowledge see created. This ATM company is an on ramp what are some of the unique challenges and benefits of having a Crypto ATM company? Can you expand a little bit more on all those money service business laws that a lot of people operated without and ended up going to prison? Yeah exactly. Know the early days of the space. You're exactly right. It's hard to get. It was risky to get I. Remember Reading Stories on Coin Desk about people getting held up with knives guns in being robbed at a BITCOIN transactions. And that was the early days of Bitcoin and. The bitcoin teams in elegant solution to a lot of that in that, you know you've got a company standing behind it. They're trusted they're registered dare Registered with the federal government, they're often registered at the state level. Depending on what state they're in and they're implementing an am l. KYC cross s that's required by law. makes transactions trusted in regulated so nobody gets in trouble. And so. You know what ended up happening companies like coined base and bit stamp in all the early on BITCOIN EXCHANGE CRACKING Were able to scale Very fast or the Internet because they can link into the existing banking system in anybody who had a banking a bank account could could pretty easily linked to bank account over. A week or two basically setting up like a brokerage account But everybody who didn't have a bank account or didn't like using banks or their income was mostly a cash generated or their transactions are thousand cash oriented. This group of people didn't really have the same access to bitcoin. And that's Why the bitcoin eighteen is really important is that it serves that particular customer base who perhaps Is. Less sophisticated. But perhaps, just uncomfortable lexi banking. System. In that can be for a lot of different reasons they feel betrayed by the legacy banking system because. They shut down their account for whatever reason they wouldn't open account for whatever reason they give mortgage because. The bank had some sort of bias against them, your stories about this, all the time and. The the legacy systems old the rails are slow. The bankers bankers will be bankers. And there's a lot of good bankers out there. So I don't WanNa come across the wrong way. But you know some some. If you're an immigrant, you might not have the documents to open a bank account. If you don't speak, the language may feel comfortable walk into a bank may feel uncomfortable walking into a bank for a lot of different reasons on the bitcoin ecosystem exists as alternative? Or better option. Than the legacy system in so. Our particular ecosystem within bitcoin is that cash economy connection to digital currencies, and you can walk up to one of our kiosks with cash in instantly buy or sell bitcoin it'll be in your wallet. within a few minutes. And that's really powerful and you don't have to go through the existing legacy system like you would online bickering change and you have to trust. Online bitcoin change to hold your balance. As, we've seen with these exchange failures, Cox, and a few others these guys he can have security holes, they can accounting. Fraud these guys can go under overnight people have lost tens, not hundreds of millions of dollars in these classes of these online exchanges, and you're putting a lot of trust in these on any changes in doing business with them with with. Digital? Currency kiosks you. Walk Up. We send you your money right away. There's no trust in us to to secure your balance maintain over time That's something that we allow our users to take control of in have their own power and I think that's really what Toshi intended bickering to be used as is he wanted people to hold their own private keys So that they could control, their own financial destiny and not be beholden to a regulators of system

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