Cash & Cryptocurrency Play an Important Role in Social Welfare
The ability of paper money to provide censorship resistance, data protection, and act as the globe’s backup monetary system has made it a crucial financial option in the modern society. As our finances become more digitized, we lose our privacy because every transaction is recorded by a 3rd party intermediary. Our banking details and credit card numbers are scattered across many places on the web.
Every week, there is a new headline about a bank, social network, or online store being hacked, causing enormous amounts of customer information to be compromised. Even worse, you might be unfortunate enough to live under a reprehensible regime (think Venezuela, Turkey, or Russia), where it may be a matter of life or death that you don’t use your bank account to finance the opposition party.
At its core, cash empowers citizens to have irrevocable access to a payment system. For example, take the marijuana industry. Because the marijuana industry has been systematically blocked from the federal banking system, cash is the primary way this industry has been able to survive and grow (pun intended). In addition, access to cash is especially important to the unbanked and underbanked, because cash is often their only remaining savings and payments lifeline.
So, what does any of this have to do with Bitcoin and cryptocurrencies? Cash has survived for hundreds of years; meanwhile crypto is the new kid on the block. Despite the two having several key differences, cash and crypto are still close substitutes and great compliments. Let’s explore:
· No ledger
· Issued by government
· Decentralized settlement (doesn’t require a 3rd party/very private)
· Can be used locally (sending by mail is not so secure)
· Public ledger
· Not issued by government
· Distributed settlement (provides more financial privacy than most legacy banking systems)
· Can be sent globally over the internet (securely)
At their nexus, Bitcoin ATMs take cash and convert it instantly to bitcoin (and vice-versa). Because cash and crypto are close substitutes, these cash-to-crypto portals extend many of the same benefits that physical cash embodies. The proliferation of smartphones and internet access make getting crypto as easy as downloading a free bitcoin wallet app and putting cash into a local Bitcoin ATM. This combination offers a very powerful alternative to skip the limitations of legacy finance mentioned above.
Let me illustrate this with a couple of use cases we’ve seen at our Coin Cloud Bitcoin ATMs:
- An unbanked immigrant worker buying bitcoin and remitting it directly to his family members’ mobile device in rural Mexico (skipping the banks or Western Union branches). Learn more about how Bitcoin can affect international transactions.
- A self-employed single mother who runs a business making wigs. Her primary hair supplier is a woman in India who could only take payment in bitcoin due to the limited financial infrastructure in her area and the infeasibility of accepting small payments through the banking system. Weekly purchases of bitcoin were then traded for hair inventory, allowing her to start small and grow her business.
As crypto and Bitcoin ATMs continue to expand their footprint worldwide, new payment corridors and economies will rapidly emerge, making us all better off by unlocking the potential of untapped talent and markets.
In the future, bans on cash or efforts to minimize its role in the modern economy will push its users into near substitutes like cryptocurrencies. Stablecoins — which combine cash denominations with power of crypto — are already experiencing rapid adoption across online crypto exchanges.
What Is Coin Cloud?
Coin Cloud is a Bitcoin ATM company headquartered in Las Vegas, Nevada. With over 627 locations nationwide, Coin Cloud boasts one of the largest and fastest-growing networks of two-way Bitcoin ATMs in the world. Our network has helped more than 144,000 customers buy and sell cryptocurrency since opening our doors in 2014. To find your nearest Bitcoin ATM, please visit CoinCloudATM.com.
To buy and sell Bitcoin using cash, find the nearest Coin Cloud Bitcoin ATM to you. Our live support ensures that your buying and/or selling of Bitcoin is quick, easy and secure.