Bitcoin ATM co-founder Jeff Berwick is planning to bring the first two ATMs in Los Angeles and Cyprus within two weeks. Mr. Berwick is currently busy choosing the most appropriate retail locations in Los Angeles and Cyprus. He said that he has received orders from as many as 30 different countries for more than 100 Bitcoin ATMs.
Bitcoin is a virtual currency created in 2009 and has seen its value inflating so rapidly that many analysts have started calling it a bubble. To give you exact figures, Bitcoins have risen 117,000 percent in value in the past four years. To achieve a similar gain, the S&P 500 took 70 years (1943 to 2013).
During an interview with FOX Business Network (FBN), Bitcoin ATM chief Jeff Berwick said yesterday that the digital currency is rapidly catching on because people are getting tired of central banks printing unlimited cash. Bitcoin currency is an open source software code which is highly decentralized.
It can’t be shut down because there is no central server. The Bitcoin currency is very appealing to people concerned about central banks devaluing traditional currencies like euros and dollars.
Berwick says that Bitcoin ATMs have some similarity with traditional ATMs. However, his software doesn’t connect to your bank account. It is installed on the ATM and converts cash into Bitcoins that are stored in a Bitcoin Wallet. In short, the ATM operators must purchase Berwick’s machine, load cash into it, set it up and maintain a steady network connection to the Bitcoin Wallet.
Berwick has used his own bank savings to develop the software program and build the first prototype. But now he plans to raise $1-$3 million in outside funding to expand the ATM network.
The value of Bitcoins tumbled 22 percent overnight after one of the key exchanges of virtual currency suffered the most powerful cyber attack in its history.
The latest glitch highlights the potential pitfalls of relying on this electronic currency. One of the world’s most established Bitcoin exchanges, Tokyo-based Mt. Gox was the victim of the cyber attack.