-First ATM Machine Launched for cryptocurrency
It all started long back when Barter System was the medium to exchange things. This was the era of our great grandparents. I still remember the stories my grandma used to tell me. I am sure; even you can recall some of those stories which you must have heard about barter exchange. However, this method didn’t guarantee the coincidence of needs of people. The value measurement of tangible things and indivisibility of these tangible goods was a big hurdle for taking this exchange system further in the civilization. This era didn’t favor the portability of the goods. The transportation was a huge obstacle back then. Instances for the barter system are as follows; you can’t divide an animal or the value of 1 animal can’t be fixed, the transportation of animals and their portability is another barrier.
The iterations in the currency were the only option left with the human race. Therefore, in 110 BC an official currency was minted. In 1250 AD, gold printed florins were introduced which were used across Europe. Finally between 1600 AD and 1900 AD paper currency gained widespread popularity. Paper Currency? Yes, the modern currency which comprises of paper currency, coins, credit cards and digital wallets. All of these modern currencies are controlled by a central authority (Banks, Government and Institutions).This seems to be perfect! There is no blockade to the exchange of money. Then why are the Crypto currencies being invented each day? Because….
The Centralized transactions could be interrupted anytime for the below mentioned reasons;
1. Ever faced technical issues with the bank? This is a common problem faced by the people. “The systems are down today, sorry for the inconvenience” says the staff at the bank.
2. The cybercrime has introduced a new problem of hacking. The user accounts are at a risk of getting hacked with their involvement. There are the chances of Identity theft and so on.
3. There are fixed transfer limits to an account. There could be a failure when this amount exceeds.
In case of Cryptocurrencies these problems are removed;
- The user’s identity is verified
- The balance is checked before making the transaction
- All the payment happens in a matter of minutes
- The accounts can’t be hacked
- There is no central point of failure
Thus there is a removal of all the problems of modern banking . As of 2018, there are more than 1600 cryptocurrencies. Popular ones being bitcoin, litecoin etc.
This is the reason even India (Bengaluru), a country where Crypto currency is not legal has installed the first cryptocurrenct ATM. This ATM will serve the withdrawal and deposit of money for cryptocurrency. The users will receive an OPT on their registered number for processing the transaction.