How to Grab the Biggest Bitcoin Gains Still to Come

Over the past two days, we’ve shared our idea about the next Bitcoin gold rush. (If you missed them, you can check them out here: “The New Bitcoin Trend that Could Make You $100,000 Per Month” and “A New Way to Tap Into the $6.42 Billion Bitcoin Market”)

But we haven’t been talking about betting on the price of Bitcoin — which now sits just below $500.

We’re talking about the emerging brick-and-mortar backbone that’s opening the floodgates of liquidity to the multibillion-dollar cryptoindustry.

Robocoin offers a “generate wallet” button to get people started with cryptocurrencies.

Today, we wrap up the case for this investable hardware that’s pushing Bitcoin further into mainstream finance. In particular: Bitcoin ATMs (or BTMs for short).

You’ll learn all you need to know to become a BTM operator, such as: which supplier to contact for the machine, where you should plant it, how much it costs and what you can reasonably expect to make on your investment.

Forget the one-way BTM machines we talked about yesterday. These BTM suppliers all deal with upgraded two-way BTMs and have plans to expand globally…

Bitcoin Supplier No. 1: Genesis Coin Inc.’s Feature-Rich Genesis1

San Diego, California-based Genesis Coin Inc. enjoys the most feature-rich BTM on the market. They allow operators to white-label machines so they can build their own unique brand. In the same spirit, this BTM is one of the few that supports three cryptocurrencies: Bitcoin, Litecoin and Dogecoin.

Genesis1 is equipped with all the anti-money laundering (AML) and know-your-customer (KYC) features. You can upgrade it to have an optional fingerprint scanner, one of the many bank-grade security features that Bitcoin is adopting. Other features include SMS verification function, ID card reader and high-def camera, which all go toward fulfilling local regulations.

It can also be upgraded to have the largest depository capacity in the business.

Another thing that makes Genesis1 truly unique is that it’s the only BTM with a magnetic/EMV card reader, which acts like a credit card or debit card.

As you may know, rather than reading the magnetic strip on a credit or debit card, most BTMs simply read the QR or bar code on your smartphone which is a replacement for your regular credit or debit card.

Finally, if you don’t have a Bitcoin wallet, the BTM will print out a piece of paper that acts like a cryptocurrency version of a dollar bill. A receipt is texted to your cellphone. This allows you to print paper wallets for “cold storage,” that is, Bitcoins that are stored off the larger online network but can still be redeemed.

Bitcoin Supplier No. 2: BitAccess’ Recycler

Ottawa, Canada-based BitAccess touts a BTM with “an incredibly easy interface” and “a broader vision of how new hardware can be used,” according to TechCrunch, which also notes, “it is the only player manufacturing its own transaction hardware.” Put differently, you need only $1 and a phone number to use it.

From humble beginnings, BitAccess’ four co-founders applied for Y Combinator, considered to be the Ivy League accelerator for tech startups. Taking a cue from that software hub, the team designed a machine that allows people to build tools for multiple applications that can run over their BTM hardware.

In other words, these BTMs can host software that evolves with the Bitcoin ecosystem and demands that are still unforeseen.

They also have high-level security hardware. The high-capacity model, for example, has an ID scanner and webcam, an added measure to keep your bitcoins secure.

Like Genesis1, they also have paper wallets.

What makes BitAccess different?

For one thing, their Recycler is the only BTM on the market that allows users to deposit money that then becomes available for others to withdraw. In theory, this means the BTM could be much more self-sustaining. Operators, therefore, don’t have to refill the depository as much.

Bitcoin Supplier No. 3: Robocoin, the Gold Standard

We saved the best (for now) for last — the guys who have first-to-market advantage.

To get newbies onto the Bitcoin train, Robocoin offers a “generate wallet” button to get people started with cryptocurrencies.

Remember that coffeehouse in Canada that’s pulled in more than $1 million since November from one ATM? It was supplied by Robocoin. On that machine, 72% of users pushed the “generate wallet” button.

Robocoin has also started an online banking platform called Robobank, where you can send and receive bitcoins to and from anyone by phone number. And if they don’t have a Robobank account, they can pick up their money at a Robocoin BTM.

Robocoin is calling their BTMs “branches.” The change in terminology is an important psychological step in the right direction. Instead of buying and selling, it’s “depositing” and “withdrawing.” The phrase “private key,” a unique encryption that labeled Bitcoin transactions, is basically obsolete in lieu of the texting service.

It doesn’t hurt that Robocoin transactions happen instantly, without the need for miners or third parties to confirm any transactions.

The ease of use is thanks to high-level security for BTM users. While that may seem like overkill, it does keep you safe by having airtight compliance with money-laundering regulations. This makes them the industry leader in terms of compliance and security. It’s about as far away from the shadowy Silk Road transactions as you can get. Here’s an example of how it works…

Like any bank account, you start by entering your phone number and a PIN.

You receive a confirmation on your phone seconds later.

Enter your confirmation code into the machine.

One thing is clear: BTMs are starting in little communities and expanding.

Prepare to be assimilated.

Scan your palm, three times.

Take a headshot with the built-in camera. Scan your photo ID.

Let the system match the former and latter.

After a maximum of five minutes, you’re now enrolled.

From then on, or, if you already own some bitcoins…

You walk up to the BTM.

And rather than use a credit or debit card…

You use the Bitcoin wallet installed on your smartphone, courtesy of apps like Blockchain for iOS or Mycelium for Android. (These apps make a QR code (a bar code) that the BTM scans like a regular ATM would a credit card to identify your account.)

Then, you can withdraw or deposit Bitcoins, or even cash in the form of your local currency.

One thing is clear: BTMs are starting in little communities and expanding. And I’ll go out on a limb to say they’ll expand more rapidly as fiascos like the notorious Mt. Gox crash occur in the future.


Josh Grasmick
for The Daily Reckoning

P.S. In today’s issue of the free Tomorrow in Review e-letter, I gave readers a slew of great resources they could use to determine just how lucrative a BTM investment could be — including recent BTM growth, an interactive map with every BTM location and even a handy calculator that shows your potential ROI when setting up your own BTM. Not only that, but they also got a chance to grab a free book packed with 127 specific ways to go “open source” for themselves.

These kinds of benefits are available in every single issue we publish. Don’t miss out on your chance to get them yourself. Sign up for Tomorrow in Review for FREE, right here.

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