Would You Put Money Into a Bitcoin ATM?

July 4 (Bloomberg) -- Bloomberg News spoke with Zach Harvey, one of the founders of Lamassu, who are making ATMs for people to buy Bitcoins. He tells us how it works and why he thinks they'll catch on. (Source: Bloomberg)

If the answer is no, then chances are you're not one of the tens of thousands of people who've hopped on the Bitcoin bandwagon.

The virtual currency is generated and shared via peer-to-peer computer networks. It can be used to buy lots of things -- food, clothing, music and porn. To get Bitcoins, a user downloads digital-wallet software and either transfers money from a bank or uses the computer to "mine" -- or create -- new coins (a process that can be quite lengthy).

The entrepreneurs behind Lamassu Bitcoin Ventures wanted to make it easier for people to pour real-world cash to obtain the digital money -- so they built an ATM. They say the machine accepts cash from more than 200 countries, converts it to Bitcoins and sends them to the user's account. The ATM isn't connected to any banks, which helps preserve anonymity.

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