Bitcoin ATM opens in Bluestem Bicycles
BROOKINGS – A bitcoin ATM has appeared inside Bluestem Bicycles. The ATM was put there by building owner Kyle Nelson, a bitcoin advocate, in January.
“The inspiration (behind the ATM) is just the belief in the concept, the belief of hard money,” Nelson said.
Nelson said that he saw an ad for Coinflip, the ATM in Bluestem, and called the company to inquire about getting a machine for Brookings.
“I called the company right away, and I practically had to beg them because we were in South Dakota,” said Nelson, who explained to them that Brookings had a younger population because of South Dakota State University.
“My hope is that because of the larger student body here that we might have a tendency to have a stronger proclivity toward cryptocurrency in general,” Nelson said. “That’s my hope.”
Bitcoin, for many, is a new term/concept and can be somewhat confusing. The basic understanding of bitcoin, known as a cryptocurrency or “crypto,” is that it is a digital currency.
Duke University Professor Campbell Harvey, who teaches classes on cryptocurrency, explained in a 2017 Duke University’s Fuqua School of Business “Question and Answer” that bitcoin is “a computer program that has a hard-wired rate of money creation that decreases to zero by 2141.”
What does that even mean?
In very simple terms, bitcoin is an asset that can be used to buy and sell goods. However, most people who have bitcoin see it more as a long-term investment.
Harvey explained that bitcoin is similar in nature to gold. To mine gold, you need to invest in expensive equipment, power and labor. Bitcoin is similar but occurs in a digital space.
“Bitcoins are scare – just like gold. It is an algorithmic scarcity,” Harvey said. “Bitcoins are expensive to produce – just like gold. There is no central authority for bitcoin – just like gold.”
The value of bitcoin, for many in the U.S., is based off the U.S. dollar. As of this writing, one bitcoin (seen as 1 BTC) is worth about $41,100.
Bitcoin is known for its volatility. The price of one coin can change rapidly. For example, on Nov. 8, 2021, the price of 1 BTC was $67,582.60. By Dec. 10, the price was down to $46,968.50.
As bitcoin has become more and more popular, companies began creating ways to simplify the ways in which people can buy and sell BTC. One of those companies, Coinflip, created automated teller machines (ATM) that simplified the way in which people take cash (U.S. dollars) and turn it into BTC.
“Much like the ATMs you see at a bank, Bitcoin ATMs receive and dispense cash. However, unlike traditional ATMs, you do not need a bank account to use one,” per Coinflip’s website.
Buying bitcoin at Bluestem
Buying bitcoin at Bluestem Bicycles is relatively simple but requires a few steps:
1. Before heading down to Bluestem, a person should have a bitcoin wallet, which is exactly like it sounds: a type of digital wallet used to send and receive bitcoins.
There is a wide variety of bitcoin wallets available for mobile phones, which is required for Coinflip’s ATM. A simple Google search will provide a variety of options, but if you don’t know which wallet to use, Coinflip suggests a wallet called “Exodus.” If you are not sure about the wallet, Coinflip’s ATM has a tutorial on its kiosk at Bluestem
2. Once at Bluestem, the ATM is located near the back of the store. The kiosk will have instructions on the next steps, but once at the machine, users will have a list of cryptocurrencies to select from. Bitcoin, along with the current price for 1 BTC, will be listed first.
3. Users will be prompted to input their phone number. After, they will receive a code that they will enter into the kiosk.
4. Next, users will enter their first and last name.
5. Two options will then appear: wallet or no wallet. If a user already has a wallet, or downloaded a wallet onto their phone before coming to Bluestem, they can then scan their QR code that comes along with the wallet into the kiosk. If no wallet, users will be given instructions on how to get a wallet.
6. After scanning the QR code, users can insert the amount of cash they want to turn into bitcoin.
7. Once the cash is inserted, a user’s wallet will refresh with the amount of bitcoin that they just purchased. For example, if a user inserts $100, they will have .0024 BTC in their wallet.
Further, at the Coinflip ATM in Bluestem, money can only be inserted and cannot be withdrawn from the machine.
An employee at Bluestem said that not a whole lot of people have come in to use the machine. However, a Coinflip employee who comes to unload the machine each month said he was surprised with how much was in there.
Brookings is home to another bitcoin ATM, a machine from Coin Cloud located inside Lewis Drug Store. Coinflip ATMs are scattered throughout South Dakota, with one in Huron, Watertown and Mitchell and a few in Sioux Falls.
Nelson is hopeful that the machine will begin to get more use as more people learn the value of bitcoin.
“Around 40% of all U.S. dollars in the history of our country were printed in just the last couple years along,” Nelson said. “My belief is that in the coming months you’ll see a flight from dollars as inflation continues to surge and hard assets and commodities are revalued to a dollar that more accurately reflects the trillions that our government has printed.”
The machine is available for use whenever Bluestem is open: 11 a.m. to 7 p.m. Monday through Friday and 10 a.m. to 4 p.m. Saturday. Bluestem is located at 405 Main Ave. in downtown Brookings.