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Author: Bitstop

How to use a Bitcoin ATM?

Thinking about getting into crypto? Using a Bitcoin ATM is the easiest way to start your first #DeFi journey. In this article, we will explain the most simple and convenient way to buy Bitcoin.

The easiest way to buy Bitcoin with cash

Most people believe that buying Bitcoin is a complicated process, which takes hours of preparation and lots of technical knowledge. However, that’s not true. Did you know there are thousands of Bitcoin ATMs across the United States where you can buy cryptocurrency with cash?

First, let’s explain how a Bitcoin ATM works.

What is a Bitcoin ATM?

A Bitcoin ATM is basically an internet-connected device that allows you to insert or withdraw cash in exchange for Bitcoins by using a digital wallet.

The machine looks just like a regular ATM and is easy to use. It verifies your identity and allows you to scan your wallet’s QR code for completing the selected transaction.

You scan your Bitcoin Wallet QR code so the Bitcoin ATM knows where to send the bitcoin. You then insert the cash and the Bitcoin ATM instantly sends the bitcoin to your wallet. Simple and safe.

Pros of using a Bitcoin ATM

Bitcoin ATMs are currently available in many countries around the world (see here Bitstop’s current location list). Most of them are concentrated in North America and Europe but we’re seeing more and more Bitcoin ATMs pop up in other regions like Australia, Chile, or New Zealand.

Now, let’s look at the pros of using a Bitcoin ATM:

  • Fast and easy transaction
  • You can buy Bitcoin instantly with cash — no need of different cryptocurrencies or pointless exchanges
  • Safe and convenient
  • Thousands of Bitstop Bitcoin ATM locations in the US
  • Instant. #Buythedip
  • Customer phone and email support
  • Bitcoin ATMs make you feel extra cool and futuristic (we swear!)

Bitcoin ATMs are perfect for buying Bitcoins locally because they are instant. You don’t have to go through the hassle of waiting days for an ACH to clear to buy from an online exchange. You get your bitcoin instantly.

What should you bring with you before using a Bitcoin ATM?

You need 4 things to start using a Bitcoin ATM.

  • Your ID
  • Cash
  • Smartphone
  • Digital Wallet for Cryptocurrency

Yes, it’s just that simple!
Your ID is needed to verify your identity. All of your Bitcoins are stored in your Crypto Wallet, right on your smartphone for easier access.

When it comes to choosing the right digital wallet for your Bitcoin, we suggest using HODL Wallet on your smartphone. All you need is to download the app from Google Store or Apple store. This wallet is very secure and easy to use.

Step-by-Step Guide: How to use a Bitcoin ATM by Bitstop

Find the nearest Bitcoin ATM

First, you need to find the Bitcoin ATM closest to you. You can check out Bitstop’s ATM locations and navigate through the map. Most of the machines are placed nearby and are typically open 24 hrs. Don’t forget to bring everything that you need for a successful transaction — your ID, smartphone, and Bitcoin wallet.

Tap “Buy Bitcoin”

You’re now in front of the Bitcoin ATM and you’re ready for your first purchase! Start by tapping the “Buy Bitcoin” button on the screen!

Enter your phone number

The next step is to write down your phone number by using the touchscreen. Then, hit “Enter”. That way Bitstop can message you a temporary SMS code, needed for the transaction.

Enter a temporary pin

You have now received a text with a temporary SMS code. Enter it on the screen and proceed.

Set up a secret PIN

Considering you’re a first-time customer, you will need to come up with a 4-digit secret PIN. Remember this code for even easier access in the future!

Scan your ID

It’s very important that all users stay safe, that’s why identity verification is a must in the crypto world. For that, you need to scan the barcode at the back of your ID by pointing it at the scanner below the screen.

Scan your Bitcoin Wallet

Next, open your Bitcoin Wallet on your smartphone and select “Receive”. Scan the Wallet’s QR Code by pointing it at the same scanner placed below the screen. That’s how the ATM makes sure that your Bitcoin is delivered to the right place, so make sure you’re giving the right information. ONLY USE YOUR OWN BITCOIN WALLET. Never send Bitcoin to someone else’s wallet directly from the Bitcoin ATM.
 

Insert Cash

You can now insert your cash. The screen will load your exchange rate. Check the information, review your purchase, and hit “Send to Wallet”.

Congrats! You did it!

You will immediately receive the desired amount of bitcoin right into your HODL wallet! There’s also a receipt that you can print for your records.

Bitstop’s transactions happen instantly. If there’s a higher demand on the Bitcoin Network, your wallet may need up to 30 minutes to show completed purchase. If there are any questions, you can always contact our customer support via email or phone.

If you’re more of a visual learner, you can also watch our step-by-step video tutorial on using Bitstop’s ATM: How to buy Bitcoin from a Bitstop Bitcoin ATM

Have fun using Bitcoin ATMs. They are one of the best ways to invest in bitcoin for beginners.

Who owns the most Bitcoin?

Who owns the most Bitcoin? If you ask this question to any crypto trader, they will tell you it doesn’t matter. It is all based on supply and demand, meaning that it doesn’t impact the price one way or another if a single person owns more of a coin than someone else.

However, Bitcoin whales are very important for the crypto community.

As of the latest data, there are 114 million crypto holders around the world. Out of them, the top 10k richest Bitcoin holders collectively hold about 5 million Bitcoins. This means that 0.01% of all Bitcoin Holders control 27% of the BTC circulation. (Source: WSJ)

But, who are these people?

Crypto exchanges: The richest Cold Storage Wallet Owners

#1 Binance

Binance owns the largest cold storage wallet address, which as of 2022, holds more than 252,597.22678490 BTC or over 9 Billion dollars and 1.33% of all coins. The first exchange happened on 2018–10–18 at 15:59:18.

#2 Bitfinex

Next up on the list is Bitfinex with 168,010 BTC — over 6 Billion dollars.

#3 Anonymous

Bitcoin’s third-largest non-exchange whale address is 100% anonymous and holds about 127,112 BTC (over 4 Billion dollars).

How much Bitcoin does Satoshi Nakamoto own?

Of course, Satoshi Nakamoto is considered to be one of the richest BTC owners in the world. However, he is not even in the top 100 list.

As of 2022, the current value of this address is over 68.542667 BTC, which equals more than 2 million dollars (at the time of writing this). Nobody knows who the real Satoshi is, so this can be a man, woman, or a group of individuals. However, the address stores information about the very first block mined.

In the corporate world: Which company owns the most Bitcoin?

Besides exchange platforms, MicroStrategy is considered to be the corporation owning the most Bitcoin in the world — over 121,044 BTC. The company develops enterprise software solutions for businesses working with big data and also helps them in adding Bitcoin into the process.

The Government with the most Bitcoin in the world

Bulgaria

It is believed that the Bulgarian Government holds the second-largest amount of Bitcoins in the world — around 213.000 Bitcoins (over 804 million US dollars). This is more than the country’s Gold Reserve and can almost cover the country’s GDP.

Top 5 Countries with the most Bitcoin Holders

Let’s think globally! When it comes to Bitcoin, there’s another ranking that needs some special attention.
According to the latest data, the top 5 countries with the most cryptocurrency holders are the following:

India

  • 100 million crypto holders
  • 7.30% of the population

USA

  • 27 million crypto holders
  • 8.31% of the population

Russia

  • 17 million crypto holders
  • 11.91% of the population

Nigeria

  • 13 million crypto holders
  • 6.31% of the population

Brazil

  • 10 million crypto holders
  • 4.80% of the population

Famous people owning Bitcoin

Do you know who the most famous Bitcoin owners are?

Let’s start with the most obvious — Elon Musk.

Elon Musk — the Crypto Meme King

It’s no secret that Musk’s tweets and memes have a pretty big influence on the market and can even cause volatility. But how much BTC does Elon own?

Even though his public address can’t be found online, it is believed that Tesla holds 42,902 bitcoins, worth around $2.8 billion. According to Bitcoin treasuries and an annual report of the securities exchange, the company is the second-biggest corporate crypto holder.

Shark Tank’s Favorite, Mark Cuban

The famous Shark Tank investor has publicly shared that he, personally, owns Bitcoin and a little bit of Dogecoin. On a podcast, Cuban shared that his crypto portfolio consists of “60% bitcoin, 30% Ethereum, and 10% the rest.” The businessman believes that Bitcoin is “a better alternative to gold” and that’s the reason why he never sold it. However, we’re unaware of the exact amount of BTC.

50 Cent becoming a bitcoin billionaire… And totally forgetting about it

Are you aware of this amazing story?

In 2014, 50 Cent decided to accept Bitcoin payments for his album “Animal Ambition”. However, he completely forgot about it, until recently. According to Coindesk, these crypto sales made the rapper around 8 million dollars in BTC. What a lucky man!

Can you spot the Bitcoin billionaire?

Even though Bitcoin holders remain anonymous, a lot of researchers try to figure out the demographics of a typical holder.

According to the latest data, 79% of the holders are male, while 21% are female. Most of them are under the age of 34 (58%) with a Bachelor’s degree (82%) and an annual income over US$100k (36%). (Source: Cryptocurrency across the world by Triple).

Do you believe that this profile fits the world’s richest Bitcoin billionaires?

Is it possible that you’re already have a friend that’s a crypto billionaire without even knowing?

We would definitely try our best to spot them in the wild, so pay close attention next time that you’re at a Bitstop ATM. 😉

Is it possible to predict the future price of Bitcoin?

Bitcoin prices have been on a wild ride over the past few years. From just a few dollars per coin to an overall-time high price of $64,800 was reached on April 14, 2021, prices have seen some serious highs and lows. So can Bitcoin price be predicted? And if so, what are some factors that could affect future prices?

In this blog post, we will take a look at some of the research that has been done on Bitcoin price predictions, and try to come up with our formula for creating a forecast for the future

Bitcoin Price Prediction: Factors

If you’re thinking about buying Bitcoin, you’re probably wondering if prices can be predicted. Unfortunately, Bitcoin price predictions are not that simple and it is best not to rely on any one sort of information for predictions. While there are some methods that may help you with your forecast, nothing is 100% accurate.

Crypto is a volatile market, which means that prices can change rapidly and without warning.

No financial advice can definitively say whether or not the price of Bitcoin will go up, but there are certain factors that can give us a general idea of where prices might go.

Supply and Demand

One of the first things to consider when trying to predict Bitcoin price is the fact that there is no central authority or government controlling the currency. This means that prices are largely driven by supply and demand, as well as speculation. When there is more demand for Bitcoin than there is available supply, prices will go up. And when there is more supply than demand, prices will go down. This basic economic principle has been one of the main drivers of crypto prices over the past few years.

Adoption

Another important factor to consider when predicting Bitcoin price is market adoption. The more people who use and accept Bitcoin as a form of payment, the higher the prices will be. We are already seeing this happen with more and more businesses starting to accept Bitcoin as payment thanks to Bitcoin ATMs and other high-tech developments. So remember: as adoption increases, we expect prices to continue to rise.

You may want to run a weekly on monthly check of the number of merchants who accept Bitcoin as payment and the number and size of investment funds investing in Bitcoin at the moment. These indicators can give you a better understanding of the market.

Check out the Bitstop Locations page for the latest data on Bitstop Bitcoin ATMs in the US.

Media Coverage

The amount of news and media coverage surrounding a particular coin can affect its price. If there’s a lot of positive news, investors may feel confident buying in, driving the price up. Similarly, if there’s negative news, investors may lose confidence and sell off their holdings, leading to a price drop.

Let’s say you’re reading a lot of new publications about the increase of adoption rates or new partnerships in the fintech industry — then most likely the price of Bitcoin tends to go up at that very moment. However, if there are lots of new wallet hacks or new government regulations, then the price of Bitcoin usually is in a tendency of going down.

That’s why it’s important to follow unbiased and authoritative sources.

Law and Regulation

Finally, another factor that could affect future Bitcoin prices is regulation. Currently, there is very little regulation around cryptocurrency trading. However, this could change in the future if governments decide to crack down on the industry.

As regulations become stricter, it could have a negative effect on prices. It’s important to keep up with the latest legal framework suggested by the U.S. Senate, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the European Union (EU).

Bitcoin Price Prediction with Analysis

There are a number of factors that can affect the price of Bitcoin, which makes it difficult to give an accurate forecast. However, some analysts believe that by looking at the historical data and trends, it is possible to make a fairly accurate prediction.

Technical Analysis

This leads us to the one popular method for predicting Bitcoin prices, called technical analysis. Technical analysts believe that they can identify patterns in past price movements and use this information to forecast future prices. This method is evaluating investments by analyzing statistical trends gathered from trading activity, such as past prices and volume.

You may have heard of support and resistance levels in crypto price charts. Those are the points where the price has had trouble breaking through in the past. These levels help technical analysts with predictions and give them an idea of where the price might struggle in the future.

Fundamental Analysis

Similar to technical analysis, we have fundamental analysis. Fundamentalists believe that they can identify factors that will affect the demand for Bitcoin and use this information to predict price movements. Those experts focus their attention on economic indicators or political events that can change the market.

No matter which method you choose to follow, remember that predicting Bitcoin prices is a risky business. The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis which states that stock market prices are essentially unpredictable. Always do your own research and never invest more than you can afford to lose.

Historical Analysis

Looking at previous price history can be another factor to include in your overall analysis. Long term trends aren’t to be solely relied upon but can be very helpful when trying to put together a comprehensive analysis of future price predictions. Bitcoin in the short-term is volatile and can move up or down sharply without much rhyme or reason. The long term trend over the last decade shows us that Bitcoin goes up in the long-term compounding at roughly 100% — 200% per year.

Will the price of Bitcoin go up or down?

You probably have heard all the positive predictions believing that the Bitcoin price will continue to rise in the long run. However, just like in any market, there will likely be some volatility along the way. And you should be prepared for it. Bitcoin might be a better long-term hold rather than a short-term quick cash grab.

By analyzing the factors that we’ve summarized for you, you may be able to develop a better understanding of what direction the price is likely to move in and make more informed predictions. Before making any decisions, be sure to do your own research and consult with a financial advisor. This should not be construed as financial advice. Each investor and crypto fan should be aware of possible corrections in price as demand and supply fluctuate, or as news affecting the market comes out.

Bitcoin Mining vs. Banking: How Much Power Does Bitcoin Mining Use?

Bitcoin is a cryptocurrency that has been around since January 2009. Over the years, its popularity has continued to grow, and more and more people are beginning to use it. But how much energy does bitcoin mining consume? Is Bitcoin mining really a danger to the environment?

In this blog post, we will compare bitcoin mining to traditional banking and see just how much power bitcoin mining really uses.

Bitcoin Mining and Electricity — The Evergreen Question

As you know, the Bitcoin network requires energy to function because it utilizes a Proof-of-Work (PoW) consensus mechanism. This means that in order for a transaction to be considered valid (included in a block), miners must compete against each other to solve math problem. The first miner to solve the problem is rewarded with newly minted bitcoins and transaction fees. This process of verifying transactions and adding them to the blockchain is called mining. It happens about every 10 minutes until another block is found and then repeats.

Over the past few years, lots of people have publicly raised concerns about the energy consumption of the Bitcoin network. Everything consumes energy, so it might help put things into context. What if we compared the energy consumption of Bitcoin with other industries such as the current existing traditional banking system.

Bitcoin Mining vs. Banking Energy Consumption

So how much energy does Bitcoin mining really use in comparison to the traditional banking system?

When you make a transaction at a bank, the bank verifies it and then records it in their ledger. This process uses a lot of energy, as it requires computers and other equipment to run.

On the other hand, Bitcoin mining only requires a computer and an internet connection. This means that it uses much less energy than traditional banking.

In fact, the latest studies show that banking consumes much more energy than the Bitcoin network.

According to a research report on the topic from Galaxy Digital, the energy consumed by the Bitcoin network is 113.89 terawatt-hours (TWh) per year, while the banking industry consumes 263.72 TWh per year. This means that despite popular beliefs, Bitcoin actually consumes less than half the energy of the baking industry. This is because older legacy systems are usually much more inefficient. An analogy would be washing the dishes by hand under the faucet instead of using a dishwasher. The dishwasher uses electricity and water, but much less water compared to running the faucet and much less energy. It’s more efficient overall.

It also turns out that Bitcoin mining uses less energy than the gold industry.

Another interesting finding is that gold consumes around 240.61 TWh per year, which is also a lot more than what Bitcoin consumes for the same period — in fact, that’s less than half. This doesn’t include the significant environmental damage caused by gold mining, especially illegal gold mining from drug cartels used to launder money.

This new data refutes claims of banks as a greener financial solution compared to the Bitcoin network. Of course, Blockchain technology still faces many challenges in optimizing processes and reducing the carbon footprint. That’s why it’s important that we all work towards building a new, alternative system for financial services that helps maintain our sustainable future. Many miners are working together to use a certain amount of sustainably sourced energy for Bitcoin mining. The Bitcoin Mining Council revealed that it successfully collected sustainable energy information from over 46% of the global Bitcoin network, as of December 31, 2021, in its latest voluntary sector survey. The results of this survey show that the members of the BMC and participants in the survey are currently utilizing electricity with a 66.1% sustainable power mix.

Why does the Bitcoin Network need energy?

As we’ve mentioned, Bitcoin mining is a process of verifying and adding transactions to the public ledger, called the Blockchain, by solving complex mathematical problems. Every time a miner solves a problem, they are rewarded with Bitcoin. To put it in perspective, each Bitcoin transaction consumes about 1,173-kilowatt-hours of electricity, according to a study, from MoneySuperMarket. In addition to that, the total energy usage of the Bitcoin network is less than 0.2% of all energy produced (source).

But why are those 1,173-kilowatt-hours of electricity needed?

Actually, their purpose is to maintain the network and help it be:

  • Decentralized
  • Robust
  • Secure
  • Live 24/7
  • Fast
  • Efficient
  • Transparent
  • With a fairer p2p rewarding system

A Greener Bitcoin Network: What can you do to reduce your carbon footprint?

As the world becomes increasingly digitized, the demand for energy-hungry crypto miners is only going to increase. That’s why today, Bitcoin miners are constantly finding ways to improve efficiency and reduce their energy consumption. For example, some miners have started using solar energy to power their operations — with Tesla being the latest example in the industry. Mining rigs powered by renewable energy sources like solar or wind power can greatly reduce the carbon footprint.

There are now several “green” mining pools that only use renewable energy to power their operations. By joining one of these pools, you can ensure that your mining is helping to support a more sustainable operation.

If you’re thinking about diversifying your portfolio, you can always look for new crypto to add to your HODL wallet. Just like there are green mining pools, there are also green exchanges that only list coins that have been mined in an environmentally friendly way. By using a green exchange, you can be sure that your trading is supporting sustainable practices.

You can also buy Bitcoin fastly and securely at any Bitcoin ATM location around the US and switch to a faster and more secure financial future.

Remember: One of the best ways to support green mining is to educate others about it. The more people who know about and understand the benefits of green mining, the more likely it is that more miners will switch to sustainable practices.

So there you have it! Bitcoin mining doesn’t use nearly as much energy as you might think. In fact, it’s actually more energy-efficient than traditional banking. So if you’re looking to save on energy costs, fintech might be a great option for you!

What Is a Bitcoin ATM and How Does It Work?

Bitcoin has been around for more than 13 years now and many individual and institutional investors have already secured holdings in the popular digital asset. However, the rise in BTC prices during last year has brought the attention of newcomers as well, making many people wonder if it is difficult to invest in Bitcoin and how to buy Bitcoin.

While it may initially seem overwhelming trying to figure out how to buy bitcoin, it can be done in just a few simple steps. One of the easiest ways to invest in Bitcoin for the first time is to use a Bitcoin ATM. In this article, we will explain what is a Bitcoin ATM and how does it work, as it’s one of the easiest ways to acquire Bitcoin.

Bitstop Bitcoin ATM

What Is Bitcoin?

Bitcoin is the first cryptocurrency that emerged in 2009, created by anonymous developer Satoshi Nakamoto. While it’s not the first attempt at digital money, Bitcoin is the very first successful one to be implemented in a decentralized way using a blockchain. Bitcoin relies on cryptography for its creation and has introduced blockchain technology to the world — a distributed ledger where new transactions are recorded and new bitcoins are created via “mining” using specialized computers.

There is a total supply of 21 million, the exact number of how many bitcoins there will ever be in the world. New coins are being “mined” daily, meaning many individuals around the world participate in the solving of complex mathematical issues in the Bitcoin blockchain and whenever one of them succeeds in it, they receive an award in the form of 6.25 bitcoins for their work. Due to the set supply of Bitcoin, the mining reward periodically decreases, making the crypto asset even more valuable because of its scarcity.

Bitcoin’s main purpose, as introduced by Satoshi Nakamoto in its initial release, is to become an alternative to fiat government money, which according to the BTC creator, is too dependent on authorities like banks and governments. BTC’s main instrument in achieving this is its decentralization due to the fact that not one central authority is controlling the asset, but many users across the whole world who participate in the blockchain and help to maintain its security and transparency. As a result of the gained attention after the high price Bitcoin reached in 2017, many new cryptocurrencies have emerged, following the BTC path of decentralization and offering additional use cases and utility.

How to Buy and Store Bitcoin

Bitcoin is digital and exists on a blockchain. To be able to purchase bitcoins, you first need to own a digital wallet. There are hundreds of wallets to download. We recommend HODL Wallet which is a simple minimalist bitcoin wallet which is non-custodial. You can also find a list of Bitcoin enabled wallets on bitcoin-only.com.

To keep it simple, Bitcoin works with two types of keys, a public key which is seen by everyone. It’s analogous to your bank account number which you give out to someone who needs to know where to wire you money. There 2nd key is a private one — known only to the wallet owner. This is analogous to your password to your bank account. You don’t want to give out your private key to anyone. Private keys = ownership of your bitcoin. Depending on where you want to store your private keys, offline or online, you can choose between different types of cold storage wallets or hot storage ones, like HODL Wallet, for example.

After you’ve chosen your preferred wallet, you have several options on how to buy Bitcoin. You can purchase BTC on a centralized (CEXs) or decentralized (DEXs) crypto exchange — special online platforms for crypto trading. The difference between the two types of exchanges is the third party that oversees the transactions in centralized exchanges, which is missing from DEXs. Online brokerages also offer cryptocurrencies for trading alongside other assets like stocks, ETFs, or bonds. Bitcoin remains the most liquid digital asset today, despite the many emerging competitors, that’s why most, if not all, exchanges and brokerages offer it for trading.

White glove OTC trading desks like Bitstop Private are another great way to buy bitcoin easily with great customer support. You get your own personal Bitcoin broker to walk you through the process of buying Bitcoin. Its a white-glove style high touch service.

Another way of purchasing Bitcoin is through a Bitcoin ATM. Bitcoin ATMs offer simplicity, convenience and are instant. They are a great option especially for beginners. They are one of the only ways to purchase Bitcoin with cash. Now we’ll explain what is a Bitcoin ATM and how does it work to help you decide if it’s the right method for you.

What Is a Bitcoin ATM and How Does It Work?

Having covered the basics about the first crypto, now comes the time to explain what is a Bitcoin ATM and how does it work. Similar to traditional ATMs, which allow people to withdraw cash using their debit bank card, Bitcoin ATMs are devices that allow people to purchase bitcoin using cash.

Users are able to buy bitcoin with cash. Bitcoin ATMs are always connected to the internet and Bitcoin network and when a transaction is initiated, they propagate a transaction to the Bitcoin network which sends the bitcoin to the customer bitcoin wallet that they scanned in front of the machine.

Some Bitcoin ATMs are one-way meaning they only let you buy or only let you sell Bitcoin for cash. Some Bitcoin ATMs are two-way meaning they let you buy and sell Bitcoin for cash out of the same machine.

What Is a Bitcoin ATM and How Does It Work: Step-by-Step Explanation

First you need to find a Bitcoin ATM near you. To locate the closest one to you, you can check out the locations we currently have on our website. Bitstop has thousands of locations in the US with more popping up everyday. Once you find a location, you need to register at the Bitstop ATM.

You can either register at a Bitcoin ATM in-person or you can pre-register before you get to the Bitcoin on the Bitstop website at account.stg-bitstopwebsite-testnet.kinsta.cloud/register.

Here is a simple video for how to register at the Bitcoin ATM in person:

https://www.youtube.com/watch?v=k1zZt7TrjUQ

Then you will need only four things — the amount of cash you intend to buy BTC with, your ID, a smartphone, and a digital wallet. From there the steps to what is a Bitcoin ATM and how does it work are the following:

  1. Select “Buy Bitcoin” on the Bitstop Bitcoin ATM you’ve located
  2. Enter your phone number
  3. Set up a 4-digit PIN
  4. Scan your Bitcoin Wallet QR code
  5. Insert the amount of cash you want to use to purchase bitcoins with
  6. Review the information and select “Send to your wallet”

Your purchase of bitcoins through a Bitstop ATM is complete!

Pros of using a Bitcoin ATM

  • Easy to use for beginners
  • Instant or much faster that online exchanges
  • Convenient
  • Cash to Bitcoin

Cons of using a Bitcoin ATM

  • Transaction fee is usually higher because of costs of dealing with cash and compliance

What are the reasons people use Bitcoin ATMs?

Although there are literally thousands of individual specific reasons why people buy Bitcoin from Bitcoin ATMs, you can categorize most reasons into 4 categories:

  • Investment (Long-Term)
  • Speculative (Short-Term)
  • Peer-to-peer international remittances
  • Online Payments

Where can you usually find Bitcoin ATMs?

There are over 40,000 Bitcoin ATMs world wide. Most Bitcoin ATMs can be found in the following spots in order of most common to least common:

  • Gas Stations
  • Convenience Stores
  • Shipping Centers and Strip Malls
  • Grocery Stores
  • Smoke Shops
  • Liquor Stores
  • Malls
  • Tourist Centers
  • Airports/Train Stations

Conclusion

Bitcoin ATMs are one of the easiest ways to get started making your first investment in Bitcoin. They are a great way to buy Bitcoin instantly with cash. Not all companies who provide Bitcoin ATMs are created equal. Some have better rates than others and provide better service and value than others. Bitstop is an early pioneer and reputable trusted leader in the Bitcoin ATM industry and has served hundreds of thousands of customers since 2013.

What are NFTs?

NFTs or Non-fungible tokens have been around for years but became extremely popular in 2021 and gathered considerable attention from traders, collectors, and beginners.

Even with all of the recent popularity, most people still don’t know what NFTs are or why they matter. Not sure what the difference is between NFTs and Bitcoin? In this article, we will cover some basics like what an NFT is and how they differ and compare to Bitcoin.

Bitstop Market NFT — Dispensed IRL Bitcoin 2022 Conference

It all began with The Blockchain

When we discuss NFTs in this article, we are referring to non-fungible tokens that are on a Blockchain. The Bitcoin Blockchain and other Blockchains like Ethereum and Tezos really paved the way for NFTs to take off. Thus ushering in the dawn of digital property rights.

Now we can prove ownership of a token tied to a physical or digital asset and self-enforce the digital property rights without 3rd parties. Without decentralized Proof-of-work blockchains like Bitcoin or Proof-of-stake blockchains like Ethereum and others, NFTs just weren’t that important because ownership relied on a centralized database that a 3rd party company controls.

What are NFTs?

To keep it simple, Non-fungible tokens are digital tokens representing either physical or digital asset.

Usually this is a token on a blockchain like Bitcoin or Ethereum which has a reference pointer to a digital file like a jpeg, video, or audio file. The token which represents the actual ownership is always on a blockchain. The digital file might be hosted elsewhere like on AWS or IPFS. Some NFTs are fully on-chain including the digital file as this seems to be more and more of a growing trend. The first NFTs ever were on Bitcoin and Namecoin. Today most NFTs are on a variety of blockchains like Ethereum, Solana, Tezos, Flow, Binance Chain, Polygon and BSV.

Even though most NFTs represent ownership of digital assets, NFTs can also represent physical assets, like real estate, clothing, physical art, tickets, collectibles, etc. Over time, you will see more physical assets able to be digitally owned using NFTs.

Gaming will probably be one of the biggest sectors where NFTs will gain adoption. It’s already happening with popular blockchain games like

Axie Infinity and Aavegotchi.

Why do NFTs have value?

What makes an NFT valuable? There’s been a lot of hype around some of the prices people pay for NFTs. To keep it simple, NFTs are veblen goods. A veblen good is a good for which demand increases as the price increases, because of its exclusive nature and appeal as a status symbol. No different than any other high demand collectible, NFTs are becoming status symbols on social media where you can now use them to display your cultural literacy and provenance.

Cryptopunk Alien 1 of only 9 that exist recently purchased for 23 million. dollars worth of ETH

An avid non-fungible token (NFT) collector and Ethereum (ETH) holder has made history by spending a whopping USD 23 million worth of ETH on a CryptoPunk token — the highest fee ever forked out for an item in the so-called “OG” collection.

The item, CryptoPunk #5822, was sold on Saturday to Deepak Thapliyal, the head of a blockchain company named Chain.

Rare Pepe 1 of 1 PEPENOPOULOS Bitcoin NFT breaks Sothebys record for highest NFT sale ever

Highest sale of entire Sotheby’s NFT auction is this #RAREPEPE “PEPENOPOULOS” ending at $3,600,000.

NFTs are setting impressive sale records and although the majority of NFTs are in a slump and sales are down significantly, the top quality NFT projects are in high demand and still setting records every week.

What is Bitcoin?

For those of you who have been hiding under a rock for the last 10 years, Bitcoin (BTC) is the first decentralized cryptocurrency, introduced by the anonymous developer Satoshi Nakamoto in 2009.

Bitcoin isn’t physical, it’s digital. The way it’s designed allows anyone to self-custody bitcoin either online or offline without trusting a 3rd party. New bitcoins are mined on the blockchain using special computer equipment. Just like traditional money, Bitcoin and other cryptocurrencies are divisible and can be exchanged for one another without losing their value. Bitcoin can be purchased in different ways, including crypto exchanges as well as Bitcoin ATMs (check out the full list of our BitcoinATM locations), and stored in digital wallets.

After Bitcoin became popular it prompted the emergence of many new cryptocurrency copy cats, also known as alt-coins, short for Bitcoin alternatives. Many of the new crypto currencies claim to be “the next Bitcoin” or somehow improve what Bitcoin offers, but few have managed to compare in popularity, use cases, or adoption to BTC, as it remains the most liquid and valuable digital asset to date.

NFTs vs Bitcoin: What Are the Main Differences and Similarities Between Them?

Having summarized what Bitcoin and NFTs are, let’s now discuss what are the similarities and differences between the two.

Differences Between NFTs and Bitcoin

The main difference between NFTs vs Bitcoin is the fungibility. Unlike Bitcoin and other cryptocurrencies which can be traded for each other, non-fungible tokens, as their name suggests, are not as easily exchanged for one another. NFTs are unique and can’t be swapped for one another without consent between two parties. Trying to trade NFTs is somewhat comparable to bartering where you would try to trade 1 horse for 3 sheep. They are not fungible and contain unique characteristics, traits and rarity.



Another difference is the purpose behind Bitcoin and NFTs. It’s probably reasonable to say that Bitcoin’s main goal is to become a decentralized reserve asset that allows you to hedge against currency debasement, whereas NFTs aren’t used as a payment method but rather as collectible items or certification for ownership. Bitcoin is money whereas NFTs can represent collectibles, metaverse real-estate, music, etc. Both Bitcoin and NFTs can and are used as investments by investors who want to diversify their portfolios with new types of digital assets.

Similarities Between NFTs and Bitcoin

One similarity between Bitcoin and NFTs is that they can’t exist without Blockchain technology. Blockchain is what enables the self enforcing property rights of both of these digital assets. Some NFTs are literally stored on Bitcoin’s Blockchain via smart contract protocol called Counterparty. Another characteristic Bitcoin and NFTs share is volatility. Both NFTs and Bitcoin currently trade like speculative assets and their USD value can vary widely in price. Some NFTs are also priced in Bitcoin which can make things even more confusing if you’re measuring the NFT value in USD while purchasing the NFT with BTC.

Bitcoin and NFTs can also be bought online using other cryptocurrencies or debit and credit cards. Bitstop also offers a fast and simple way to purchase Bitcoin through one of our many Bitcoin ATMs for cash. Once you purchase Bitcoin, you can use the Bitcoin to buy NFTs. Bitstop even had a NFT ATM at the Miami Bitcoin 2022 Conference which dispensed two limited edition cryptoart NFTs: The Bitstop Marketplace (pictured at the beginning of this blog post) and a Darkfarms special edition artwork RANSMOWLWARE! Maybe in the future, there will be many NFT ATMs in the world.

Both NFTs and Bitcoin are stored on a digital wallet. If you want to purchase them you’ll have to own a crypto wallet, either a cold wallet or a hot one, depending on your preference about where you want your private keys — the special code that is used to initiate transactions and only the wallet owner should know, to be stored.

Similarities Between NFTs and Bitcoin

As digital assets which rely on blockchain technology, NFT vs Bitcoin has several similar advantages and disadvantages. They include some of the following ones.

Pros of NFTs and Bitcoin

  • Both types of assets are considered transparent and secure because of the technology they are using
  • NFTs and Bitcoin are new decentralized assets that provide control to their owners and not a third party
  • The data about the ownership of NFT vs Bitcoin can’t be altered once it’s recorded on the blockchain
  • Both serve as a diversification to a traditional investor’s portfolio

Cons of NFTs and Bitcoin

  • There are environmental concerns regarding the making of both bitcoins and NFTs although these concerns are usually overblown and FUD and baseless when you examine them closely
  • Digital assets are volatile by nature which may result in frequent price fluctuations
  • NFTs are relatively new and they still aren’t as popular as their traditional alternatives although they may become more popular over time
  • 99% of NFTs will go to zero. Most of them are complete crap. The other 1% will most likely become extremely valuable over time.

Conclusion

Now you know that even though NFTs and Bitcoin both live on a blockchain and are speculative at the moment, they are very different types of digital assets. If their core difference should be summarized, it can be laid out like this — Bitcoin is fungible and its purpose is to serve as a decentralized cryptocurrency which serves as a currency debasement hedge, as opposed to NFTs which are unique and not nearly as fungible as bitcoin. They may also have additional collectible emotion value and even utility depending on the type of NFT. Even though they have underlying similarities, they are very different fro one another. Most will agree that Bitcoin and NFTs are going to change the world. Arguably, they already are.

Non-custodial Bitcoin ATMs show their value after many lose billions from FTX implosion

After this week’s massive news about Bitcoin Exchange FTX blowing up, investors and traders and beginning to understand the difference between custodial exchanges and non-custodial Bitcoin services like Bitcoin ATMs. There is a famous expression in Bitcoin: “Not your keys, not your coins.” Everyone is finding this out the hard way after many lost billions when FTX Bitcoin exchange was revealed to essentially be a Ponzi scheme. Investors both big and small found out that their Bitcoin and money on FTX essentially did not exist or was frozen and they could not withdraw.

The FTX exchange was using customer funds to lend to their hedge fund Alameda research to make risky bets without permission. FTX was able to do this because FTX had full control over their customer’s cryptocurrency private keys. If customers used non-custodial services such as Bitcoin ATMs instead, things may have ended up differently. Bitcoin ATMs provide a convenient way for people to buy and sell Bitcoin without having to go through a third party. Non-custodial Bitcoin ATMs are particularly useful for those who want to keep their bitcoin in a secure wallet.


1. Centralized custodians can’t be trusted

It is becoming increasingly clear that centralized exchanges like FTX and others should not be trusted blindly. FTX’s implosion has shown us the importance of understanding the difference between custodial and non-custodial exchanges, as well as the value of decentralized services like Bitcoin ATMs. Even with strict regulation and top-tier investors and backing, it’s clear you really can’t place your trust in institutions to hold your Bitcoin. Investors need to understand why self-custody matters before investing in Bitcoin and cryptocurrencies.

Non-custodial Bitcoin ATMs provide an easy and convenient way to buy and sell Bitcoin. Bitcoin ATMs do not hold your Bitcoin. Bitcoin ATMs require you to take possession of your Bitcoin and cryptocurrency where you self-custody your private keys. This way, you do not have to trust Bitcoin ATMs. You have full control over your money. Bitcoin ATMs are convenient, instant, and non-custodial. You scan your Bitcoin wallet at the machine, insert your cash and the Bitcoin ATM sends the Bitcoin to your wallet which you control. For these reasons, we can expect demand for non-custodial Bitcoin ATMs to continue to grow in the coming years. Bitcoin ATMs are starting to see some of their highest volumes after the FTX crash. Even though the fees for Bitcoin ATMs can be somewhat higher, people are beginning to understand the value proposition of their non-custodial model.

2. The difference between custodial exchanges and non-custodial exchanges

Custodial exchanges are when a third party holds your Bitcoin and cryptocurrency. This third party can be an exchange, such as FTX, or a wallet service, such as Coinbase. Because a third party is holding your Bitcoin and cryptocurrencies, you have to trust that this third party will hold and protect your assets. Centralized exchanges like FTX are especially at risk for security breaches. In the case of FTX, investors found out that their money was not actually held by FTX but was lent to their hedge fund without permission. This caused many investors to lose their money when the exchange went bankrupt.

Non-custodial exchanges or self-custody is when you hold your Bitcoin private keys and cryptocurrencies. Self-custody is important because it removes the need to trust a 3rd party. You control your own private keys. This means that you are in charge of your own money and you do not have to trust a third party. Non-custodial exchanges and services do not require you to blindly trust them. You have control and transparency over your bitcoin.

People are beginning to understand the difference between custodial and non-custodial exchanges. They will either learn quickly the easy way or learn the hard way and lose a lot of money in the process. There are many many cases of Bitcoin exchanges losing the money of people who trusted them.

3. How do Bitcoin ATMs work?

Non-custodial exchanges or self-custody is when you hold your Bitcoin private keys and cryptocurrencies. Self-custody is important because it removes the need to trust a 3rd party. You control your own private keys. This means that you are in charge of your own money and you do not have to trust a third party. Non-custodial exchanges and services do not require you to blindly trust them. You have control and transparency over Bitcoin ATMs provide a convenient way for people to buy and sell Bitcoin and take possession of their own private keys. They are convenient, instant, and non-custodial. Non-custodial Bitcoin ATMs are becoming increasingly important to service people who want to invest in Bitcoin that don’t want to worry about having to trust a 3rd party with custody.


Bitcoin ATMs work by allowing users to scan their Bitcoin wallets at the machine, insert cash, and have the BTC sent to their wallet. They control their money. Bitcoin ATMs do not control user funds. Horrible situations like FTX can’t happen when you are taking possession of your private keys. The problem with online Bitcoin exchanges is that they hold your coins. Because you control your private keys, you do not have to trust anyone else with your money. Centralized exchanges like FTX are at risk for security breaches, but with non-custodial Bitcoin ATMs, you don’t have to worry about that. It’s cash for Bitcoin and Bitcoin for Cash. Instant settlement on both sides. A bearer instrument for a bearer instrument. No credit risk.


Bitstop has been providing Bitcoin ATMs since 2013. We have thousands of Bitcoin ATMs that are conveniently located that provide Bitcoin to your wallet instantly for cash. We have never held customer funds and we have sold tens of thousands of Bitcoin over the last 9 years without losing anyone’s money. We are trusted, regulated and will continue to remain non-custodial to make sure our customers never have to trust us. You can find a Bitcoin ATM near you on our website:


4. The future is self-custody, decentralization, and transparency

Non-custodial exchanges and self-custody are becoming more and more popular as people become increasingly aware of the risks associated with custodial exchanges like FTX. Centralized exchanges are vulnerable to security breaches, and insiders stealing customer deposits. Investors have lost millions of dollars in the past due to hacks. With self-custody, you don’t have to worry about that. You control your own money and you are in charge of your private keys.

Decentralized exchanges are also becoming more popular as people become increasingly frustrated with the lack of security at centralized exchanges. Decentralized exchanges do not require you to trust a third party with your money. They are not always as convenient as centralized exchanges, but the trade-off is that you probably won’t lose your money. Not a bad trade-off to be honest.

Finally, transparency is becoming increasingly important to investors. They want to be able to see where their money is going and they want to be sure that it is safe. Expect radical transparency in the future for exchanges. Cryptographic real-time proof of reserves and proof of liabilities. More on-chain visibility into full-reserve backing and permission required notice when funds are being lent out and to whom.

FTX and countless other exchange blow-ups have shown us that the future is non-custodial and transparent.

Conclusion

Self-custody, decentralization, and transparency are the future of the Bitcoin industry. Services like Bitcoin ATMs and Bitstop have been leading the way for many years. Centralized exchanges are vulnerable to security breaches, and insiders stealing customer deposits. Get your funds off of exchanges! Do not trust these exchanges! Investors have lost millions of dollars in the past due to hacks and theft. You should not have to trust anyone with your money. If you decide that you prefer someone hold your funds other than you, they should have the highest standards when it comes to transparency that your funds are actually fully backed 1:1. Ask the exchange is they show cryptographic proof-of-reserves in real-time including their liabilities!

It’s optimal that you control your own money and you are in charge of your private keys. Practicing self-custody and using tools that make self-custody easy like hardware wallets: Ledger or Trezor is a worthy endeavor. They are not always as convenient but the trade-off is that you probably won’t lose your money.