Cryptocurrencies have come a long way since the introduction of Bitcoin in 2009. When Bitcoin first launched, very few people actually knew what they were or how to get them. Then, crypto-only seemed to be associated with nefarious businesses and the dark web. Today, cryptocurrency has successfully shed this negative image, and Bitcoin is now accepted at many major retailers and mom-and-pop businesses around the country. It’s easier than ever to access coins through online exchanges and in-person at ATMs. But how does a local Bitcoin ATM work and where can you find them?

Before we dive into the main question of this post, we’ll explore a few key concepts that help to frame the emergence and use of the Bitcoin ATM.

The Growth of Cryptocurrencies
Discussing the growth of cryptocurrency itself is a great place to start when researching Bitcoin ATMs for the first time. This is because it clears up a few common questions people tend to have when they initially become interested in cryptos. So, in order to avoid any confusion throughout this post, we’ll start with a brief history of cryptocurrency; or more specifically, how it’s grown over the years.

Satoshi Nakamoto published a white paper in 2008 titled Bitcoin: A Peer-to-Peer Electronic Cash System. Although digital currency was conceptualized before the Bitcoin whitepaper was released, Nakamoto’s work was the first concrete plan for cryptocurrency.

Soon after, Nakamoto mined the first block. Ever since then, Bitcoin, and cryptocurrency in general, have exploded into popularity and its uses continue to evolve.

Now, what exactly are blocks, and what does it mean to mine them? The answer isn’t as complex as you might think.

MINING AND EXCHANGES
As we mentioned earlier, Bitcoin used to get a bad rap because of how hard it was to initially obtain. This is mostly because cryptocurrency exchanges didn’t exist yet. In the earliest days of cryptocurrency, most people obtained cryptocurrency through “mining.” In short, this process involves Bitcoin miners actually creating new currency by verifying a certain number of transactions. Yes, the concept is simple, but the mining process is actually more complicated than it sounds because it requires the miner to have powerful hardware and software in addition to a plentiful energy source. For this reason, most cryptocurrency mining is done in China where energy costs are low.

The rapid growth in cryptocurrency really started with the emergence of online exchanges. In the same way that you could trade your U.S. dollars for euros, exchanges allow you to trade your fiat currency for Bitcoin, Ethereum, or any other kind of cryptocurrency.

The introduction of exchanges helped to legitimize Bitcoin as a tradeable currency, and its uses and applications continue to develop to this day.

May 2nd is an important date for crypto enthusiasts because it marks the first time cryptocurrency was used in a real-life transaction. Laszlo Hanyecz purchased 2 pizzas for the price of 10,000 BTC.