So, guys. There are three Bitcoin ATMs (or BTMs) in San Francisco, all of which have previously remained an unused mystery by us. What is Bitcoin, why does it need an ATM, and how does it work? We ventured into a Mission Street commune to find out.
Let's start with the basics: according to Bitcoin, they are "the internet of money." Without delving too deeply into complex economics, all money is basically imaginary and we've all collectively agreed to recognize that certain currency has certain value. That dollar in your pocket is worth a dollar because the world has agreed to it. Bitcoin is simply (or actually, not so simply) a digital currency.
Unlike most recognized currency, Bitcoin isn't attached to a country or government. Bitcoin-ers argue that there's a big benefit to this because when a country's economy collapses, so does their currency. Not so with Bitcoin. Bitcoin is virtual money and it's all encrypted, thus warranting the moniker "cryptocurrency." There's a finite amount of Bitcoin, it can be used to buy and sell things, and similarly to gold, Bitcoin can be mined—on the internet. But we're getting way beyond the BTM machine near the front door of 20 Mission, "a 41-room community of art and technology creators."
20 Mission's storefront contains Nakamoto's Bitcoin Store, among other eclectic offerings such as healing crystals and motorcycle apparel. The Bitcoin store was opened by Purse.io, a start-up that lets consumers spend less on Amazon if they use Bitcoin, and it is presumably named for Satoshi Nakamoto, the person (or people?) who invented Bitcoin. No one knows who Satoshi Nakamoto really is. Nevertheless, there's a "Nakamoto's Bitcoin Store" at 2415 Mission Street, and it is in this small squared-off area where one can access a BTM, purchase Bitcoin t-shirts and books, and get Bitcoin information, provided someone is manning the table—which they weren't when we dropped by. A little online research reveals that this is a common complaint of Nakamoto's Bitcoin Store.
A Bitcoin Teller Machine is essentially a way to convert one's paper dollars to Bitcoin and vice-versa. Anyone with a Bitcoin virtual wallet can enter their phone number and receive a text verification code, which they then enter into the BTM. They can then scan their Bitcode (it looks like one of those QR codes we're always trying to make bigger on our iPhone screens), and enter paper money through a slot.
There's also a way for those of us without a Bitcoin wallet to create one at Nakamoto's. We think that's what the other machine in the photo might be? We're not sure. It all seems very complicated. No one even knows how many people Satoshi Nakamoto is, and we have $7 in United States currency that can get us a carne aside burrito a few doors down. No text codes, no BTM, no mysterious economic geniuses. Perhaps we're not ready to fully embrace Bitcoin yet. Are you?