You must have heard that the first bitcoin ATM has been delivered now in Hungary. However, anyone looking to see how bitcoin paper money has ever come from an ATM at the Ankler Club in Budapest has to be disappointed: this ATM does not work as usual.
Perhaps it would be a better term to use a currency converter instead of an ATM, as this ATM converts our forint into bitcoin, not even cheaply.
Internet money is especially popular with young people, so they will probably be familiar with this new Hungarian ATM even though at first glance it is not easy to operate the machine.
Paper money needs to be inserted directly into the ATM
The minimum amount to be converted is 2000 dollars. When this conversion is made, a QR code will be displayed on the screen of the device. Scanning this into your mobile phone can transfer your electronic money into a Bitcoin wallet for your mobile phone (although both are called bitcoin, but your currency is lowercase, and the system is capitalized).
And the Bitcoin wallet works just as well as an electronic wallet: you can buy it online at the point where you accept bitcoin. However, like other electronic wallets, Bitcoin can be used at physical acceptance points. At the moment, we are not aware that Bitcoin is accepted for on-site payments, so we can only use the Bitcoin balance online.
In the future, there are also ATMs that issue money to our Bitcoin account, so the big issue is not the infrastructure, but the exchange rate that you are looking for in the banks’ exchange rates: the bitcoin (currency code BTC) is unique, market demand-supply relationships.
Forints paid to ATMs in Hungary become bitcoin through an English bills. As Barry Lou, CEO of the first Hungarian Bitcoin ATM, Noctarine Labs, said at the press conference at the handover, the process meets all expectations from a legal, tax and consumer protection point of view.
You should be aware that when you use a bitcoin exchange device, you charge a transaction fee of 7 percent, which is very high compared to the 1-2 percent of online stock exchanges, but buying an automatic bitcoin is much faster than buying a bitcoin exchange where lead time.
But what is Bitcoin?
The basic idea behind internet money is not to digitize existing money but to create truly digital money. Its inventor is still a secret, and this mystery also, in a sense, surrounds Bitcoin as a whole. According to some news, Satoshi Nakamoto invented the money, but others believe that the name is behind a group of programmers. Bitcoin was created in 2008 for interpersonal payments and e-commerce, with the intent of evading banking systems and eliminating mistrust between payments, but following its significant strengthening, it has been the subject of numerous attacks in several countries (such as China and Russia banning its use). In recent times, the bitcoin exchange rate has shown strong hecticism and there have been vulnerabilities in bitcoin stock exchanges and, of course, there have been a few abusive scandals in the development of online money.
Not only foreign regulators, but also the Hungarian central bank spoke on the Bitcoin issue.In March 2014, the MNB issued a statement on bitcoin and other similar virtual payment instruments. The Hungarian central bank did not distance itself as much as the Russian one, but expressed the fears of the financial world: there is a risk that it is not an issuer, is not subject to oversight by any national authority, central bank, and does not have proper liability, guarantee or compensation. This resolution is essentially in line with the statements made so far by the financial world (such as the European Banking Authority), and some have gone further and raised the need for regulation. And the US tax office said this spring that it was declaring bitcoin a tax asset, not a currency.
Despite the scandals and the separation of the financial world
Bitcoin is nice to say thanks. While the world of money disapproves of it, the giants of the internet world have secured their support for internet money. EBay president David Marcus, who says Bitcoin has a much bigger future ahead of the much-publicized NFC (though the latter is technology, not money, but Marcus obviously referred to it as a modernization driven by money), Bill Gates for a magic guideline former Google CEO and Chairman of the Board, and Eric Warner said the structure of Bitcoin is an amazing step forward.
Steve Logan, a member of the Supervisory Board of the Daisy Bank, said in a similar statement when setting up the first Hungarian Bitcoin vending machine. In the shadow of the ongoing foreign currency loan lawsuits, the expert said at the press conference: “We will forget the lawsuits for a long time, but we will still use bitcoin.”