The rise of Bitcoin ATMs has revolutionized the accessibility and adoption of cryptocurrencies, offering users a convenient way to buy and sell digital currency with cash. However, behind the scenes, Bitcoin ATM operators sometimes face a challenge, particularly when it comes to securing banking services. 

From navigating complex compliance requirements to establishing trust with financial institutions, operators must overcome numerous hurdles to ensure the smooth operation of their businesses. In this blog, we delve into the key challenges of banking in the Bitcoin ATM industry and provide valuable tips and strategies for compliance and acquiring a bank account.

Understanding the Banking Challenges

1. Finding Banks Willing To Work With Bitcoin ATM Operators

One key challenge is finding banks that are willing to open accounts for MSB businesses that Bitcoin ATM operators are. Larger banks are sometimes hesitant to work with Bitcoin ATM operators due to the larger amounts of cash these ATMs generate. In contrast, local banks may be more open to banking Bitcoin ATMs, providing them with a foothold in the banking sector.

2. Risk Assessment and AML/KYC Policies

Banks meticulously assess the risk associated with Bitcoin ATM operators due to the inherent nature of cash-based transactions. Therefore, operators must have robust Anti-Money Laundering (AML) and Know Your Customer (KYC) policies in place to mitigate these risks and demonstrate their commitment to regulatory compliance.

3. Utilizing Cash and Transit Services

To address the challenge of cash handling and transportation, operators can leverage cash and transit services such as armored car operators for secure transportation of funds between Bitcoin ATMs and bank vaults. These services offer a reliable solution while operators work towards establishing traditional banking relationships.

4. Transactional Requirements

Building a customer base and reaching higher transaction volumes is often a crucial step in order to bank with one of the larger banks that are open to MSB business, and establish more favorable banking relationships.

5. Enhanced Due Diligence

One of the main challenges is the enhanced due diligence required by banks. Banks may request specific information, such as lookbacks, or collecting certain information from all the customers.

6. Lengthy Process

The process of acquiring Bitcoin ATM machines, achieving compliance, and securing a bank account can be arduous and time-consuming. It often takes from a couple of weeks to several months to navigate the regulatory landscape and establish banking relationships, requiring patience and perseverance from operators.

Compliance Tips and Strategies 

1. Don’t Approach The Bank Until You’re Fully Prepared

A thorough knowledge of KYC/AML program, reporting requirements, and filing procedures is crucial before approaching banks. It is essential to know your operational procedures and best practices.

2. Conduct Regular Compliance Training 

Compliance is paramount in the banking sector, and Bitcoin ATM operators must conduct compliance training. Regular compliance training is necessary to ensure operators meet the stringent requirements set forth by regulatory bodies.

This includes initial training on anti-money laundering (AML) procedures, as well as regular supplemental training on industry-specific topics. Another insight is the need to demonstrate compliance with AML regulations to banks. Operators must undergo training and implement measures to prevent money laundering.

3. Understanding Your Machine’s Functionality

Knowing your Bitcoin ATM machine’s functionality is a key aspect that you need to know while approaching a bank. Operators should have a clear understanding of how the Bitcoin ATM operates, including its features, KYC collection limits, and maintenance requirements. Knowing which cryptocurrencies are supported and sold at the ATM is also important while talking to the banks.

4. Comprehensive AML/KYC Compliance Program:

Implementing robust AML/KYC policies is non-negotiable for Bitcoin ATM operators. These policies among other things should encompass thorough customer KYC, due diligence procedures, transaction monitoring mechanisms, and reporting protocols to detect and prevent illicit activities.

5. Designated Compliance Officer

Designating a compliance officer within the organization is essential for effective implementation of the KYC/AML program. This individual should be well-versed in compliance requirements and responsible for overseeing all aspects of regulatory compliance.

6. Getting A No-Action Letter

Obtaining a no-action and or opinion letter from the state and your legal counsel as well as consulting with an attorney for assistance is very important. This communicates the seriousness of your intentions to run a Bitcoin ATM business in accordance with regulations and aliens with potential legal requirements your state may have implemented.

7. Third-Party Audit

Having a third-party KYC/AML compliance audit completed before approaching the banks is very helpful. This brings credibility to your Bitcoin ATM business which is an important consideration for banks. In addition to this, it also helps you address the things lacking in your compliance program thus helping banks make a favorable decision.

8. Addressing Risk Concerns

The operators in this industry need to understand and mitigate the risks associated with Bitcoin. It is crucial to approach these discussions with a level of knowledge and professionalism to establish a successful relationship with banks. We recommend doing a proper risk assessment before approaching banks and addressing concerns properly to avoid any issues.

9. Getting Two-way Bitcoin ATM Machines

Two-way Bitcoin ATMs can help operators, while one-way machines only accept cash, the two-way machines also dispense cash so the amount of cash that needs handling is reduced because cash inserted by one customer can be dispensed to the next customer for a sell order.

10. Stay Informed About State Regulations

Keeping abreast of federal and state regulations is imperative for compliance. Resources such as the Association of Certified Anti-Money Laundering Specialists (ACAMS) provide valuable insights into regulatory developments at the federal level, while state websites offer information on specific state regulations.

11. Inquire About BSA Requirements

Operators should inquire about the BSA (Bank Secrecy Act) requirements for a money services business when discussing bank account opening with the bank.

12. Blockchain Forensic Tools

The use of blockchain forensic software is becoming a common practice when dealing with cryptocurrency transactions. This is why banks usually ask what tools are you using to monitor the wallets that are conducting transactions.

13. Build Trust with Banks

Building trust and credibility with the banks is crucial for establishing banking relationships. Operators should maintain transparent communication, demonstrate adherence to compliance standards, and emphasize their commitment to operating a legitimate and compliant business.

In conclusion, banking challenges in the Bitcoin ATM industry stem from the unique nature of cash-based transactions and banks’ risk aversion towards cryptocurrency-related businesses. However, operators can navigate these challenges by staying informed about regulatory requirements, implementing robust AML/KYC policies, and fostering trust with financial institutions.  Bitcoin ATM operators can mitigate risk and ensure the long-term viability of their businesses in this dynamic and evolving industry.

Lastly, operators like Hippo ATM can successfully overcome these challenges by utilizing the latest technology from trusted providers like ChainBytes. ChainBytes is dedicated to supporting its clients every step of the way, ensuring that each Bitcoin ATM operator can thrive in this dynamic industry.

Ready to start your Bitcoin ATM business? Contact ChainBytes today and take the first step towards setting up a successful Bitcoin ATM operation in 2024.

ChainBytes, a leading BTM manufacturer, has been at the forefront of this trend, providing users with reliable, durable, and user-friendly machines. In this article, we will take a closer look at the future of the ChainBytes Bitcoin ATM and how it will continue to evolve to meet the changing needs of users.

The Growth of the Cryptocurrency Market

The cryptocurrency market has been growing rapidly over the past few years, with the total market capitalization reaching over $1.5 trillion in January 2021. This growth has led to an increased demand for convenient and accessible ways to buy and sell cryptocurrencies, including through crypto ATMs. As more people become interested in cryptocurrencies, the demand for BTMs will only continue to increase.

However, while the past year may have been the harshest period for crypto, there’s no denying that it will continue to rise in the future now that more people realize the fundamentals it provides when compared to the current fiat money such as the US dollar.

From 2023 and beyond, it seems like cryptocurrency is refueling to go back into orbit soon. As it goes higher, more people will want to join in on the crypto hype. They can either go through all the hassle just to register for an online exchange…OR they can go to a Bitcoin ATM near them. That is why having a Bitcoin ATM business could be a great decision for anyone looking to cash in on not just the crypto trend but in the long term when it could possibly become the new era of money.

The Advantages of Using ChainBytes Bitcoin ATMs

One of the key advantages of using ChainBytes Bitcoin ATMs is the ease of use. The machines are designed to be simple and user-friendly, allowing even those who are new to cryptocurrencies to buy and sell easily. In addition, ChainBytes BTMs are high-quality hardware machines packed with innovative, cutting-edge software features.

ChainBytes Bitcoin ATMs in operator fleet are easily managed via online platforms with the help of a handy Dashboard program and have one of the best backend office software on the market. The back office platform is built with the operator in mind, and it provides live information from the entire fleet of machines, customers, the status of the network, reports, and much more. The ChainBytes back office software provides an easy way for operators to stay on top of their operations at all times.

Another advantage of using ChainBytes Bitcoin ATMs is their slick modern look and additional hardware components like a top screen. The added on the top screen allows operators to easily use the screen and promote their operation or sell add space to local businesses and create an additional revenue stream. Not only do they look techy, but they are approachable enough even to someone who is not big on tech stuff.

Providing Convenience for Customers

Considering that the operators are usually placing the machines in convenient locations, making it easy for customers to buy and sell cryptocurrencies using cash at any time, this also means a lot of eyeballs on your machine, which equates to higher revenue potential.  This accessibility is also extremely important for tracking those potential new customers who are just starting to explore the world of cryptocurrencies and who need a convenient and accessible way to get started.

Bitcoin ATMs are the most convenient way to purchase Bitcoin; they are placed locally and have little barrier to entry for new clients. The ChainBytes machines are easily configurable, and operators can set their own fees and revenue models for their business.

On top of all, the crypto machines are fast. Depending on the purchase size, the customer may need just under a minute to buy Bitcoin.

The Future of ChainBytes Bitcoin ATMs

As blockchain technology and the cryptocurrency market continue to grow, ChainBytes will continue to innovate and evolve its Bitcoin ATMs to meet the changing needs of users. This will likely include the integration of new cryptocurrencies if the market demands it as well as the implementation of new innovative options and services the kiosk will be able to offer in the future.

One of the major trends in the cryptocurrency market is the increasing popularity of non-fungible tokens (NFTs). ChainBytes is well aware of this trend and is likely to integrate support for NFTs into their BTMs in the near future. This will allow customers to easily buy or sell NFTs using their BTM, further increasing the convenience and accessibility of cryptocurrencies.

Another trend in the cryptocurrency market is the increasing importance of security and privacy. ChainBytes is well-equipped to meet this demand, as their BTMs already use the latest in encryption and security technologies.

In the future, we can expect to see even more advanced features integrated into ChainBytes BTMs, further enhancing the platform.

We plan to lead the Bitcoin ATM market with innovations and, as always, remain the leader in the quality and longevity of hardware components built into our kiosks.

Other than passive revenue streams for operators, ChainBytes wants to make onboarding to crypto easy for everybody. The most non-tech-savvy person who has never used a Bitcoin ATM needs to be able to walk to the kiosk and get their bitcoins with ease.

How This Affects You and Bitcoin ATM Operators in the Long Term

Bitcoin ATM operators are fairly new to the current economy, and being one today will give you an advantage in the long term. As more people grow accustomed to Bitcoin and the existence of digital assets, the crypto ATM market demand may soar in the future.

For example, El Salvador is one of the first countries in the world to use Bitcoin as a legal tender. As such, the desire for crypto ATMs skyrocketed.

In the US, the topic of cryptocurrency is still divisive among people, although the country holds one of the highest transaction volumes that involve Bitcoin and several other tokens.

If you happen to be one of the early operators of the Bitcoin ATM, you may find yourself swimming with good foot traffic as visitors will come to your kiosk to do Bitcoin transactions.

Plus, if people are looking for a Bitcoin ATM through Coin ATM radar, your location will light up like a Christmas tree. More visitors means more revenue for you.

Conclusion

In conclusion, the future of ChainBytes Bitcoin ATMs looks bright.

As the cryptocurrency market continues to grow, ChainBytes will continue to innovate and evolve its BTMs to meet the changing needs of users. With its focus on ease of use and ease of operation, ChainBytes Bitcoin ATMs are poised to become even more popular in the years to come.

Buying Bitcoin using cash or selling Bitcoin for cash never has to be complicated and long, which is why we created crypto ATMs that are easy to use, easy to own, and easy to operate.

If you plan to operate a ChainBytes Bitcoin ATM, don’t forget to check the BTM compliance  website and KYC/AML compliance services for Bitcoin ATM companies.  For other inquiries or if you want to browse the different machines, click here.

As the world becomes more digitally driven, more and more people are turning to Bitcoin as a means of investment rather than a traditional bank. The rise of Bitcoin has caused many to question the role of banks in the future of finance.

With governments all over the world looking into creating the so-called “centralized bank digital currency” to combat crypto, people have become divisive about whether to trust in the crypto market or let the central bank keep people’s money.

If you find yourself in a rut, wondering what the future brings for banks and Bitcoin, this is the perfect article for you.

In this article, we will explore the benefits of Bitcoin over traditional banking methods and why people are choosing to invest in it.

Why Bitcoin is Being Preferred Over Saving in Banks

Bitcoin is quickly becoming one of the most attractive investment opportunities available due to its decentralized nature, global accessibility and transparency. Unlike traditional banking methods, which can be limited by geographical location or other restrictions, Bitcoin is accessible from anywhere in the world, at any time.

Additionally, it provides a level of transparency and accountability not always possible with traditional financial institutions, as all transactions are recorded on a public ledger. Furthermore, Bitcoin is not subject to inflationary pressures that can cause the value of traditional finance to decrease over time. For these reasons and more, investing in Bitcoin is an increasingly popular option for those looking for greater control over their finances.

Centralization of Banks and Custody Over Money

In these uncertain times, it’s more important than ever to be aware of how secure people’s money really is. With banks, the stability and trustworthiness of the institution should be a major factor in deciding where people store their money. Banks can fail without warning, leaving customers without their hard-earned savings and investments.

Additionally, central banks may enforce limits on how much money individuals can withdraw from their accounts, potentially exposing them to financial losses if they haven’t taken action to secure their funds beforehand.

Individuals who prioritize financial autonomy and security can find this in Bitcoin. Digital assets are viewed as digital gold by the crypto sector because they provide individuals with complete control over their funds without the need for third-party intermediaries such as banks. This is especially beneficial in times of economic crisis or instability, where central banks may limit how much money people can withdraw from their own accounts. Bitcoin can be seen as a safe haven as it offers a level of protection not seen with traditional banking methods.

Self-Custody for Money through Bitcoin

Bitcoin provides a means of self-custody for money. With Bitcoin, people have access to their funds at all times, and they do not have to worry about banks or other financial institutions having control over their funds. Additionally, while the use of Bitcoin is not completely anonymous, it still provides a level of privacy that is not possible with traditional banking methods.

IMPORTANT: Why a Bitcoin ATM is Safer than a Crypto Exchange

Having self-custody on Bitcoin depends on where the person buys it from. Centralized crypto companies can act no different from traditional banks because they hold users’ cryptocurrencies. If that company crumbles and declare bankruptcy, people (including crypto clients, traders and retail investors) may not get their money back.

But if the person buys it from a Bitcoin ATM instead, they own their digital assets 100%. Think of the machine as a sort of vending machine for snacks. You insert cash in it, it gives you the snack you want. Once you claim it, it’s yours even if the machine busts down.

For example, ChainBytes manufactures top-of-the-line Bitcoin ATMs for people to buy and sell Bitcoin in a short amount of time (we’re talking less than a minute just to complete a transaction). The machines let people keep their Bitcoin forever as long as they properly store their wallet. Even if the company closes down, nothing will ever take away the person’s crypto purchase.

In other words, once someone buys Bitcoin from it, their digital assets are theirs to keep in their crypto wallets.

Comparison of the US Dollar and Bitcoin

The value of the US dollar is determined by a number of factors, such as the strength of the US economy and the policies of the Federal Reserve. In contrast, Bitcoin’s value is determined by supply and demand. Due to its limited supply and increasing demand, Bitcoin has experienced a sharp rise in value over recent years.

Investing in Bitcoin

Investing in Bitcoin and digital currencies carries some risk but can potentially bring significant returns. People are investing in it to diversify their portfolios and protect against inflationary pressures. Even small investments could result in considerable profits down the line.

The Future of Banks

Banks are still an important player in global finance, but their future is uncertain as decentralized systems like Bitcoin gain traction. Many questions have arisen about how banks will adapt to these changes moving forward.

The closure of Signature Bank and Silicon Valley Bank in early 2023 left a deep impression on banking services everywhere. Very rarely do two national banks close simultaneously like this.

The Future of Bitcoin

It’s impossible to be certain, but many experts believe that Bitcoin has what it takes to become a global currency in time. Its decentralized structure makes it more secure than traditional banking methods, while its limited supply adds stability not found with regular currency exchange rates.

The US Securities and Exchange Commission (SEC) has increased oversight for crypto-related industries due to concerns about violations (such as unregistered ICOs). Banking regulators have also been paying close attention to cryptocurrencies, raising warnings around risks connected to money laundering or terrorism financing while also recognizing potential benefits these technologies might offer. Some companies even recognize those benefits, offering banking services specifically designed for digital asset companies or cryptocurrency firms.

Bottom Line

Bitcoin has been around for over a decade now and is proving to be much more than just a passing trend. After gaining a steady footing in the market, it has become an increasingly popular form of investment and asset class – one that is gaining traction with investors and businesses alike. Its unique properties make it attractive to those who want control over their money and the ability to easily transact within a secure network.

Bitcoin also offers privacy protections that traditional financial institutions cannot match, as well as unmatched speed and low-cost transfers when compared to other forms of money transfer. In short, Bitcoin is here to stay and looks set to continue its upward trajectory in the years ahead.

Become a Bitcoin ATM Operator Today with ChainBytes

Becoming a Bitcoin ATM operator with ChainBytes can be a great way to contribute to the growing cryptocurrency industry. By providing people with the option to buy Bitcoin on-site, you can help to make this revolutionary financial system more accessible to the general public. Don’t wait any longer to get started, become a Bitcoin ATM operator with ChainBytes today!

The Coffee Project – El Salvador

In the past year, ChainBytes has been working with Lehigh Valley University on a socially responsible project implementing Blockchain technology to solve supply chain issues with coffee bean farming and fair pay for farm workers in El Salvador.

For many years, workers within the coffee bean industry in El Salvador have been left unpaid due to the corruption of the industry, which removed El Salvador from the coffee map of the first world countries and big acquirers who are putting effort to be socially responsible and assure fair pay for farm workers. 

Big corporations such as Costco, Walmart, Whole Foods and many more refuse to purchase coffee that is not grown under the fair farming principle. The coffee industry in many parts of the world, the income of workers in the industry depends on the sale of the coffee to the purchase price. If the coffee is not sold, or is sold under a specific price, the workers on the coffee farms often won’t be paid for their work during the season. This brings many workers and their families to poverty and struggles for survival. Due to untrusted 3rd parties, even when coffee was sold the farmers would not be paid. 

The Future of Coffee Justo

The Coffee Justo project with ChainBytes and Lehigh University will be completed this semester, including a fully-functioning IOS and Android mobile application for coffee farmers and workers to use. The future plans for this project are to create a frontend system for workers that is a payment history when scanning a QR code on a coffee bag at your local grocery store. This will allow customers to see if the workers on the coffee farm were paid for the time they worked to produce that bag of coffee. The ultimate goal for the project is mainstream adoption for supply chain tracking capability and a use case for Blockchain technology across the world.

Over the past years you have probably heard the term blockchain thrown around when talking about cryptocurrencies, like Bitcoin. However, a lot of people might still be scratching their heads about what exactly blockchain technology is, how it works, why it’s popular, and how it is a vital part of the digital world that we are moving towards. 

In order to prepare for the future of digital currency and how it will continue to be integrated and adopted into society it is important to understand what blockchain technology is. 

What is Blockchain Technology? 

To put it simply, blockchain technology is a digital ledger that stores transactional records based on purchases. This network is stored on many databases that are referred to as the “chain” that resides in a network that is connected through peer-to-peer nodes. 

Every single transaction that is recorded on this digital ledger is authorized by a digital signature of the owner. This digital signature is unique to every person and authenticates the transaction, safeguarding it and making it highly secure. This blockchain is unique because it allows anybody to see the data, but they cannot corrupt it.  

How does Blockchain Technology Work? 

The Blockchain is a combination of three leading technologies. 

   Cryptographic Keys  

Cryptographic keys on the blockchain consist of two keys, a private key and a public key. These keys are what make transactions successful between two parties. Every individual has these two keys which are used to create a digital identity reference. This secured identity is hands down the most important aspect within Blockchain technology. In the cryptocurrency world, this identify is referred to as a ‘digital signature’ which controls and authorizes transactions. 

     Proof of Work (POW) 

Proof of Work objective is to extend the chain. The longer the chain is the most believable and safest because it has the greatest proof-of-work invested in it. Through a consensus mechanism where all parties agree, the transactions are valid through a peer-to-peer shared ledger that can be proven and checked. To learn more about Peer-to-Peer Electronic Cash Systems and Proof of Works click here. 

     A means of computing to store the transactions and records of the network  

When two parties authorize a deal, it is then certified by a mathematical verification which records the transaction on the Blockchain and makes it secure between the two connected parties.  

Why is Blockchain so popular? 

There are three main reasons that Blockchain is becoming popular amongst users and businesses.  

     1. It’s highly secure 

By using individuals’ unique digital signatures transactions are fraud-free on the Blockchain. It is impossible for users to corrupt or change other people’s data without that specific digital signature. 

       2. The Blockchain is a decentralized system  

Typically, you would need approval of regulatory authorities like a government or a bank in order to make a transaction. Through the Blockchain this isn’t the case; instead, transactions are made with a mutual consensus of users resulting in smoother, safer, and faster transactions.  

      3. Automation capability  

On the Blockchain users can generate systematic automatic actions, events, and payments.  

Although we just skimmed the basics of Blockchain in this article, there is no denying that this technology is a new interesting way to make secure transactions. With its ability to support various applications related to multiple industries including finance, supply chain, and manufacturing we are seeing the adoption rate rise at a steady pace.  

An NFT is a Non-Fungible Token which acts as a certificate of authenticity or a “deed” to a digital “collectable”, or other digital assets. Non-fungible means ‘irreplaceable’ since each token is unique. Uniqueness plus authenticity creates scarcity which, in turn, increases the market value for NFTs. 

What is an NFT?  

An NFT is a token on the Ethereum Blockchain that acts as a ‘collectable’. This collectable token contains — 

• Historical information of all previous transactions of the token as well as all the artist’s information including their public key and the number of likes they have gotten on their NFTs. 
• A token ID which is a unique identifiable number.  
• A picture of the art. 
• A smart contract. An NFT is effectively a smart contract where standard copyright law applies.  
• The art being accessible via a link in the description. 

NFTs can be any form of art (paintings, graphics, videos, GIFs, songs, poems, tweets, posts even video games, virtual real estate, books), birth certificates, concert tickets, and so many more things. A Non-Fungible token makes whatever the asset is irreplaceable. Think about an NFT as a way to document ownership and authorship.  

What is all the hype about?  

In the last couple of years NFTs have gained a massive following. Now you might be wondering why? There are three main reasons.  

1. NFTs are scarce: Part of the excitement around NFTs comes from owning something that is scarce. Since NFTs are non-fungible, by definition, every asset is unique.  
2. FOMO: When it comes down to it, people have a fear of missing out when it comes to NFTs.        
3. NFTs can insert trust: Last, but certainly not least. NFTs have the ability to insert trust in what has previously been a trust-less system where it wasn’t always easy to prove ownership and originality.  

Five major benefits of NFTs 

1. NFTs are a new product type: With NFTs a new product/art type is emerging that many traditional artists are taking advantage of.  
2. NFTs create a new marketplace for artists: New channels have been developed that allow artists to display, promote, and sell their art. These new channels are bringing both digital and non-digital art into the digital world. This is helping to boom a renaissance in the art community.   
3. NFTs are creating a revenue boost for artists: NFTs are essentially smart contracts and that means they are 100% programmable. This allows artists to build in their own costs, royalties, rights, and other components of their works’ functionality. Artists now have the ability to move outside of traditional contracts where they would receive around 10% royalties off their work to now being able to earn up to 90%.  
4. NFTs are adding value to art: With NFTs, buyers can be given unique privileges and unlock new experiences. An example of this can be seen through the band Kings of Leon who dropped three NFTs linking the buyers directly to the band’s artwork and some special privileges that included 4 front row tickets for their concerts for the rest of the buyer’s life.   
5. NFTs are a new medium for buyers: On top of artists seeing benefits from the NFT space, buyers are also given an opportunity. The NFT space is giving buyers new ways to support artists, start collections, build art investment portfolios, or just display the art that they own. 

Where can you find NFTs?  

Now that you understand what NFTs are and how they are benefiting the community, you might be wondering where you can buy them. There are numerous decentralized platforms that allow NFTs to be auctioned, the most popular being OpenSea marketplace. On this platform you can trade more than 200 types of NFTs and all the trading happens through a smart contract on the blockchain. Click here for a step-by-step guide on how to buy or sell an NFT on Opensea. 

Like any collectable, NFTs price depends on the value the consumer associates with it. Some NFTs have exploded in popularity including collections such as Bored Apes, Crypto Punks, and Art Blocks.  

NFTs have gained a lot of popularity and exposure over recent years as they act as proof of ownership and authenticity of both digital and physical items. On top of that, NFTs allow users to transfer ownership and eliminate fraud.   

As a leader in innovation ChainBytes is happy to announce the integration of NTFs on our Bitcoin ATM network. ChainBytes has recently partnered with Museo del Caos to bring their artists NTFs directly to customers worldwide.

What is The Museo del Caos? 

Founded in 2019 by José Rodríguez, the Museo del Caos is a space of creativity where Mexican artists and performers who create crypto art and NFTs meet to discuss and showcase their creative ideas. 

Since 2019, Museo del Caos has collaborated with artists, conferences, and startups creating galleries, events, and experiences on the MetaVerses of Decentraland and Cryptovoxels, with over 10,000 total attendees.  

ChainBytes Partnership with The Museo del Caos  

“We have wanted to integrate NFTs on to our Bitcoin ATM network for a while now, luckily for us we found the right partner with The Museo del Caos” – said ChainBytes public relations director Ted Stevenot

Bitcoin ATM machines have experienced enormous growth in recent years as convenient onramps for retail participants wanting to become involved in the cryptocurrency space. Uniquely, ChainBytes Bitcoin ATMs integrate supplemental video screens which make them ideally suited to display and promote NFT art throughout the company’s expanding Bitcoin ATM network. This allows operators to expand their Bitcoin ATM capabilities to a world of NFTs.

Through ChainBytes Bitcoin ATM networks, the Museo del Caos will be able to showcase their artists within the NFT and MetaVerse spaces over a new medium. This will boost the visibility of the artists internationally in the United States and in the future across Mexico and LATAM, as ChainBytes plans for expansion into these countries.

Eric Grill, CEO of ChainBytes commented, “Utilizing our Bitcoin ATMs to provide exclusive content and NFT services to Mexican and Latin American artists, galleries, musicians, labels, and more offers added exposure and makes it easier for retail buyers to participate. Through our initiative with Museo del Caos, we can now offer network operators, content creators, and the public greater access to this rapidly expanding space.” 

Some artists that are already on board include Youkonejo, Oh Fetush!, and the rappers Simpson Ahuevo and Go Golden Junk.

This is just the first step in integration of NFTs into our Bitcoin ATM network. We are currently working on expanding even further to open the doors to the endless possibilities within the NFT space and the MetaVerse.  

Artists and NFT projects interested in collaborations with Museo del Caos and ChainBytes can contact, jose@museodelcaos.com 

Smart contracts are now bringing benefits to Bitcoin users through enhanced functionalities. This opens the door to new features on the Bitcoin blockchain that are similar to Ethereum’s decentralized applications.          

With blockchain, users can pay one another directly without permission or authorization from a third party (i.e. banks). This puts users in complete control of their funds. Funds are secured by the user’s digital wallet that stores a unique private key. The private key connects the user to his or her transaction history on the blockchain.    

Smart Contracts                      

Following Bitcoin’s introduction, came various altcoins, with the most popular altcoin being Ethereum. These altcoins were part of the second generation of blockchain applications that introduced new features to cryptocurrency.  

One important new feature is smart contracts. Smart contracts allow developers to program code for cryptocurrency functions. Smart contracts enable —  

• Digital currencies to be programmable.                         
• The development of decentralized applications that extend the features of cryptocurrency tokens.                                                                          

These developments began a boom in initial coin offerings in 2017 by allowing developers to build their own tokens through the use of smart contracts. This brought more liquidity and users into the Ethereum blockchain ecosystem and opened the door to many new opportunities in the cryptocurrency space.                  

Unfortunately, Bitcoin originally was not able to support smart contracts since it was based on a different structure.                                                   

Difference between Bitcoin and Ethereum Smart Contracts  

-Ethereum                                              

• Transactions are based on the state and provenance of transactions on a digital ledger.
• An Ethereum smart contract uses its own programming language called Solidity. 
• Ethereum smart contracts are also Turing complete, which means they are more capable of complex data manipulation functions.   

-Bitcoin         

• Transactions use the UTXO model.  
• Bitcoin smart contracts use a script language. 
• Bitcoin smart contracts are simpler and less complicated to develop. 

Smart Contracts for Bitcoin              

Originally, Bitcoin was not able to support smart contracts. Luckily for Bitcoin, developers did not want it to miss out on the benefits of smart contracts.            

Developers recently created an upgrade for Bitcoin called Taproot. This upgrade hopes to introduced smart contracts to Bitcoin for general use. Taproot will provide functions like the following:                                         

• Multi-signature accounts – Enforces the release of funds through multiple digital signatures.                          
• Multi-party agreements – Allows multiple users to create agreements on transactions.                   
• Contract Interfaces – Offers utility functions that other contracts can reference. 

With Bitcoin smart contracts, several addresses (i.e. accounts) can interact in a single transaction. This allows developers to build applications that can lock funds which require multiple user’s digital signatures to unlock. Contracts can also be utilized to provide functions that are accessible by other contracts, like a library module. 

With Taproot, users can gain access to new features that will help them manage their Bitcoins more efficiently. Examples include the ability to create new functions like inheritance and delegation that can be used for certain transactions.              

Other technologies have been introduced using smart contracts to offer users new services for buying and selling Bitcoin. One of these new technologies is Bitcoin ATMs. A Bitcoin ATM allows users to buy or sell bitcoin in real time. Bitcoin ATMs are connected to the Internet and often utilize QR codes to send and receive tokens to users’ digital wallets.   

Multisig (Multi-Signature) is a software that provides more security to Bitcoin wallets. Traditionally, only one private key per wallet can authorize the release of Bitcoin. Therefore, this private key can only be used by one account, which is the Bitcoin holder’s public address. Usually only one person has access to a public address. However, multisig and smart contract scripts, bitcoin wallets now have the ability to have multiple users.

How Multisig is Implemented

Multisig acts like a joint bank account where x number of people are owners. 

• A joint bank account recognizes multiple digital signatures to open the account and send money. 
• Most importantly, developers can set additional rules to the account. For example, a rule can be set that requires 2 of 3 digital signatures before funds can be released.  
• Rules like this help with security and corporate management of money.               

Trusting Multsig

Firstly, if one is going to use multisig they must trust the system. With Bitcoin you have a trustless system. This means two parties can have transactions without knowing each other. That is different then the current financial system where trust is determined by third parties. With Bitcoin, trust is through cryptography via the buyer’s private key and the merchant’s public address.

This is an effective way to implement trust in the allocation of funds. A Bitcoin wallet can be created to lock away funds for specific purposes like inheritance. A multisig would prevent anyone from taking control of the entire fund because there are rules set for its release. 

Multisig trust can be implemented for corporate management of funds, budget expenses, and other funding methods. Therefore, corporations that do B2B business can create multisig wallets. This authorizes both corporations to be involved in the releasing of funds. Bitcoin wallets also track the history of these transactions and can easily be audited. This prevents money racketing and swindling of funds from taking place. 

Main Benefits of Multisig  

• It’s a safe and secure way to manage funds.                                
• Creates a trustless settlement that’s automated and doesn’t require a third party’s involvement.     
• Multisig can enforce settlement rules.           
• Multisig helps secure funds by requiring consent of more than one account holder to unlock and release funds.     
• The security multisig provides help in corporate mediations when it comes to fund management.                                 
• Transactions are recorded on a blockchain for transparency purposes and discourages account holders from any malicious acts.                                                                        

Above all, the Multi-Signature feature provides a layer of security that doesn’t exist in traditional finance and helps improve trust in corporate management.

5 reasons to invest in Bitcoin ATMs right now!

The demand for Bitcoin ATMs is growing at an increasingly fast pace in the United States. According to CoinATMRadar, there are currently more than 21,000 Bitcoin ATMs (or more widely known as BTMs) worldwide – out of which over 18,000 are located in the U.S. But why are Bitcoin ATMs becoming so popular? And more importantly, how can you and your business benefit from this?

Here are the top reasons why you should invest in Bitcoin ATMs right now.

Why are Bitcoin ATMs all the rage in the U.S.?

Bitcoin is a digital currency that emerged right after the financial crisis in 2008. The so-called cryptocurrency uses blockchain technology to verify transactions that make it extremely secure and not dependent on a central bank or third party. It has gathered popularity over the years as a payment method, an inflation hedge, and a store of value for investment purposes.

How do Bitcoin ATMs work?

While traditional ATMs let you withdraw and deposit cash to and from a bank account, Bitcoin ATMs work a little differently. You can use a BTM to buy and sell different cryptocurrencies in an easy and secure way.

For example, if you want to purchase some Bitcoin, you’ll simply have to select how many Bitcoins you want to buy, insert cash into the machine, and then wait for the confirmation that the digital assets have been deposited into your digital wallet.

For people who wish to sell their Bitcoins, the process is straightforward as well. Just decide how much you want to sell and send the cryptocurrency to the indicated address. After the transaction is confirmed, collect the cash directly from the machine.

Top 5 reasons why you should invest in a Bitcoin ATM

1. To increase revenue

This one is almost a no-brainer. Growing your revenue is one of the main reasons people decide to get into the Bitcoin ATM business. Especially during the pandemic, more and more businesses are looking for alternative revenue sources. Bitcoin ATMs can provide businesses with two different potential revenue streams. The first is by collecting rent on the floor space the ATM occupies. The second is by earning a fee on transactions carried out on the machine in your store.

With transaction fees, the amount you receive depends on the level of commitment you’re willing to put into operating the machine. It can vary between 12 and 18%. The more you do to promote your bitcoin ATM to more people, the more transactions you’ll tend to have – increasing your transaction revenue.

2. To increase foot traffic for your business

Another benefit of operating or hosting a Bitcoin ATM at your business is that it can bring more people into your store. Bitcoin ATM locations are listed on websites like CoinATMRadar. Such websites help people locate BTMs nearest to them. When people come in to use your Bitcoin ATM – they will most likely become customers for your other products and services, as well.

Do you run a gas station? Getting your tank filled up while buying some Bitcoin can be an amazing pairing for your customers. Or maybe you happen to own a coffee shop? Purchasing Bitcoin while getting your morning cup of coffee and doughnuts sounds just about perfect.

3. To network with like-minded people

This is especially great for those businesses that have a bigger venue for hosting events, but even a coffee shop can do wonders with crypto-networking opportunities. The crypto community is all about making connections and finding the best up-and-coming projects before the masses do – and hence why networking is especially important.

Investing in a Bitcoin ATM can be the first step into making connections and finding like-minded people with which to network. You can easily organize events or meetups for local crypto enthusiasts. Events like these can also help local crypto fans know where to find your machine.

4. To get media coverage

Even today, a new BTM in town is newsworthy! Especially if you live in a smaller town or suburb, a shiny new Bitcoin ATM can be of public interest to a lot of people. There are tons of examples of local news media covering newly deployed machines. Being featured in a local newspaper or on a local news website can bring more attention and more customers to your business.

5. To keep your business modern

It’s always good to know that your local business is keeping up with the times! Now is the perfect time to invest in a Bitcoin ATM as the cryptocurrency craze washes over the whole country. Bitcoin has been around for over a decade and it’s here to stay. As such, it’s a good idea to be sure that you’re staying ahead of the curve!

How to invest in a Bitcoin ATM?

There are actually different ways you can get into the Bitcoin ATM business. The differences depend on how much effort you want to put in over time. Do you simply wish you had an ATM attracting extra people to your store without any extra effort on your part? Or do you want to get into the operational side of the business and increase your revenue even more?

We’ll show you both ways, and then it’s up to you to decide.

Hosting a machine

If you choose to host a machine with ChainBytes, you simply rent out the place the BTM takes up in your store. This means that you are guaranteed a monthly fee but that you don’t have to deal with the everyday operational tasks (apart from minor things like replacing the paper in the machine). In this case, you’ll earn a fixed amount every month regardless of how many people come into your store to use your machine.

Becoming an operator

If you wish to play a larger role in growing the business, you can become a Bitcoin ATM operator. This can include various responsibilities based on how much you want to get involved. But as your responsibilities grow, so does your potential revenue. As an operator, you will get an operational fee after each transaction processed by your customers. This means that every time someone buys or sells Bitcoin using your BTM, you will earn some extra money. And, of course, the more people do, the more revenue you’ll generate!

Now is the perfect time to get involved with BTMs!

As mentioned earlier, Bitcoin has been around for over a decade, and it’s here to stay. Right now, is the perfect time to get involved as more and more people learn about the advantages of using Bitcoin. Whether you want to diversify your revenues, attract more customers, upgrade what your store offers, or meet like-minded people – a Bitcoin ATM is here to help you!  At ChainBytes, we can show you how to do it all!