Recently, BASE.INFO had an exclusive interview with Daniel Polotsky, the CEO of CoinFlip. Polotsky explained that CoinFlip is a bitcoin ATM company that converts six different cryptocurrencies into cash and vice versa. These digital currencies are: Komodo, Tron, Dash, Ethereum, Litecoin and, of course, Bitcoin. CoinFlip has nearly 120 ATM’s in the United States, and it also handles wire transfers and card purchases for those who are not near one of their ATMs.
Polotsky first used a Bitcoin ATM in Chicago but disliked the experience because it was not user-friendly. He then began buying bitcoins in person but did not like this much better than using the ATM because it took up so much time. Therefore, he decided to create his own company that allows users to covert crytocurrency into cash and vice versa through an easy-to-use interface on the familiar technology of an ATM.
CoinFlip differs from other bitcoin ATM companies because it allows users to purchase currency without using a traditional bank account and without waiting months to be approved. In fact, registrations are done as quickly as five minutes, and the ATM rates are extremely low. In short, CoinFlip is a fast, cheap and convenient way of converting cryptocurrency to cash and the other way around.
As far as the CoinFlip team itself, Polotsky explained that most of his coworkers are people he met in high school or through work and who are now in there twenties. He said that in general, they are ambitious and hardworking.
While CoinFlip is doing well and Polotsky enjoys the challenges of the work, he said it isn’t always easy dealing in cryptocurrencies. For starters, the regulations regarding using bitcoins and other digital currencies are always changing, and it’s also a challenge for the company to maintain the necessary cash flow to all its ATM’s.
Furthermore, the ATM’s themselves sometimes break down and, of course, need regular maintenance. Finding the right ATM manufacturer was one of the biggest challenges CoinFlip faced in its infancy, Polotsky said, and it took a while for his team to find a brand of ATM’s that were easy to use, reliable and secure.
Cryptocurrency and Crypto ATMs
Cryptocurrency is defined as a digital medium of exchange as opposed to traditional currencies such as the dollar, yen, peso, and others. While traditional currencies are centralized and typically tied to a specific country, cryptocurrencies are decentralized and flow freely through the digital realm. There are currently thousands of different cryptocurrencies, but Bitcoin, released in 2009, was the first.
Cryptocurrencies can be used securely because they use blockchain technology. This is a concept where a list of records, or blocks, are linked together, as needed, using cryptography. Blockchain is used not only with digital currencies but also increasingly in healthcare, transportation and cloud computing.
Crypto ATM’s convert cryptocurrency into whatever form of cash is being used locally and vice versa. The first cryptocurrency ATM’s in the United States were produced by the firm Robocoin in 2014 in Austin, Texas. These ATM’s converted bitcoins into dollars and the other way around. In the United States, bitcoin use is regulated by the Federal government.