— DOSHost.net (@DOSHostNet) June 21, 2014
Bitcoin ATM Comes to North Dakota – First in the State
DOSHOST.NET, based in Grand Forks, North Dakota today announced North Dakota’s first Bitcoin Automatic Teller Machine. Unlike traditional ATM’s used to deposit or withdraw money from a bank account, the bitcoin ATM enables the public to buy bitcoin digital currency. When customers buy bitcoin from the ATM it is directly deposited in each customer’s bitcoin electronic wallet. Manufactured by Skyhook, the ATM is light-weight and transportable, allowing DOSHOST.NET to bring it directly to interested customers.
DOSHOST.NET has been in discussion with North Dakota’s Department of Finance as well as State Senators to make them aware of this new service and to allow input from State government on how they would like to see it used.
Daniel Schott, CEO at DOSHOST.NET, explained that once approval is finalized, “We will begin transporting the ATM to various locations across the state because we know there are many people in North Dakota who would like to own bitcoin currency. This ATM gives consumers an easy and secure method to exchange dollars for bitcoin.”
Bitcoin digital currency is being accepted by a growing number of online retailers. Overstock.com, Expedia and Tiger Direct are a few of the most recent national companies announcing they now accept payment for goods and services with bitcoin. King’s College in New York City also reports it will accept bitcoin in payment for tuition and other college expense, claiming it reduces costs compared to conventional payments.
How It Works
DOSHOST.NET’s new ATM gives users an easy way to buy bitcoin. The customer displays a QR code from his or her smartphone bitcoin wallet app. There are no cards to swipe or PIN’s to enter. The ATM scans the QR code and registers the customer’s bitcoin wallet as the destination for the transaction.
Then, the customer inserts cash into the ATM. The ATM counts the cash and presents a screen that shows the equivalent bitcoin value. With one bitcoin trading at around $565 today (June 21, 2014), a $20 purchase deposits slightly more than 0.035 BTC into the customer’s wallet.
What Is Bitcoin?
Bitcoin is a digital currency, not a physical coin or bill. It is created by a decentralized, worldwide peer-to-peer network that manages and tracks every transaction no matter where it originates. The network uses military grade cryptographic procedures to enforce security. As a result, transactions using bitcoin are extraordinarily secure. There are no PIN numbers, credit card numbers or CVV numbers to be stolen. Everything is handled through your electronic wallet that connects you to the network.
How Do I Spend Bitcoin?
Once you’ve received bitcoin, spending it (or saving it) is simple. Your wallet allows you to buy online from any vendor anywhere that accepts bitcoin. A domestic or even an international transaction typically takes only about 10 minutes to complete and be verified. During that time there are no banks or credit card companies applying fees to the transaction. In fact, the bitcoin network itself charges no fees except in the case of very small purchases – and then those fees are as little as 10 to 40 cents.
What You’ll Need
Because bitcoin is a form of currency, tax regulations apply to your ownership of bitcoin. Customers should be prepared to present a valid government-issued ID and to provide contact information including legal name, address and phone number. Using a smart phone is the easiest way to buy bitcoin, however the DOSHOST.NET ATM can scan an electronic wallet’s QR code even from a copy printed on paper.
Bitcoin ATM’s installed elsewhere may use “exchanges” at various international locations to transfer bitcoins to one’s wallet. However, this ATM draws its bitcoin payment directly from DOSHOST.NET’s electronic wallet, giving customers far superior service and compatibility with state laws.
Individuals buying bitcoin from online exchanges generally find it takes up to four days to fund a purchase and the sites require that you upload your personal information to their website, which could make your information vulnerable. Further, exchanges only accept purchases paid by wire transfer, thus adding unnecessary cost to your purchase.
For More Information …
DOSHOST.NET is a technology consulting firm that offers Bitcoin mining and consulting among its many professional services. As scheduling North Dakota’s new bitcoin ATM at locations throughout the state begins, please check our website or social media pages for a current itinerary. You can reach us directly by email and phone as well. We look forward to serving you as the bitcoin economy continues to grow, and to give you a secure and easy way to become part of it.
PHONE: (701) 203-2002
DOSHOST.NET: Technology Consulting for Small and Large Organizations ~ We Deliver Service You Can Trust
What is Bitcoin?
Bitcoin is a highly innovative payment network that employs the use of a new kind of universal money. It makes mobile payments very easy by allowing the user to pay with just a simple two step scan and pay process. There is no need to sign up, swipe a card, type in a PIN number, or give a signature. All that is required to receive a Bitcoin payment is to show the Bitcoin QR code within the Bitcoin wallet app, then allow the other user to scan your mobile device. The two phones can also be touched together to complete the transaction though the use of something called NFC radio technology.
Bitcoin wallets are available online via websites such as www.coinbase.com and www.blockchain.info. Bitcoin wallets can be created on your personal computer with several different software packages. Bitcoin wallets can also be stored within “paper wallets”; these paper wallets consist of a wallet ID as well as a Key to enable spending of Bitcoins from the paper wallet.
Safe and Secure. Bitcoin offers unparalleled control and security over money. All Bitcoin transactions are secured using the best in military grade cryptography. No other user or entity will be able to charge a Bitcoin user for any amount or make a payment on another user’s behalf without going through the payment initiation process described above. As long as required steps are taken to protect your wallet, Bitcoin allows for complete control over the funds as well as a strong level of protection against most types of user fraud.
- Bitcoin can work everywhere, at any time. Just as with email, matching service providers or software applications is not required to correspond with other users, Bitcoin can work with any user currency. This allows friends, family, and customers to stick with their preferred method of payment and currency, as they are all compatible with Bitcoin. The same open technology is employed, and the Bitcoin network never takes a break; it is open 24 hours a day, seven days a week, 365 days a year. Unlike banks, Bitcoin is open and available for use on every holiday.
Rapid international payments. International users love Bitcoin for its convenience and rapid service. For example, Bitcoins can be transferred from the country of Africa over to Canada in about 10 minutes. This is possible because there isn’t a banking system or infrastructure to slow down the process. Users also won’t receive outrageous fees or have to worry about the transfer being frozen. Users are able to pay their neighbors in the same manner as a member of their family in another country can be paid. Bitcoin makes it all possible with no hassle or long wait times.
Low or no fees. Bitcoin allows for the sending and receiving of payments at zero cost or very low cost. With the exception of some special cases, such as very small payments, there is no enforced fee to use Bitcoin as a sender or a receiver. However, it is recommended that users pay a higher voluntary fee to remunerate the people who operate the Bitcoin network and to ensure faster confirmation of Bitcoin transactions.
Your identity is safe and protected. When you use Bitcoin, there’s no credit card number to deal with that a malicious hacker can intercept, collect and use to try and impersonate an unsuspecting user. As a matter of fact, it’s even possible to send Bitcoin payments without revealing one’s identity at all, similar to using cash to pay for goods and services. Users should, however, take note that certain steps and efforts are required to fully and comprehensively protect privacy.
Privacy Considerations and Traceability
Bitcoin is sometimes perceived as and known for being an anonymous payment network. In reality, Bitcoin is actually one of the most transparent payment networks around. That said, Bitcoin provides security and privacy for users when implemented correctly. Users should keep in mind that it is their responsibility to use safe practices so that privacy can be assured and maintained.
Bitcoin offers unprecedented transparency for users that put a premium on this feature. All of your Bitcoin transactions will be traceable, public, and permanently stored within the Bitcoin network database. Because of this, if privacy is desired, each Bitcoin address should only be used once. Users’ Bitcoin addresses are the only piece of information needed to define where Bitcoins are allocated as well as where they have been sent. These Bitcoin addresses are created privately within each user’s wallet. Once these addresses are used, they are connected with the history of all transactions that have been associated with them. Anyone can potentially see the balance and all of the transactions of any address. Since users must typically reveal their identity to receive goods and services, Bitcoin addresses are by nature not fully anonymous. Again, for these and other security reasons, Bitcoin addresses should be used only once. Users should also take care not to disclose their Bitcoin addresses in other venues.
Unless the user is fine with receiving public payments or donations with full transparency, using Bitcoin addresses in any public space via a website or social network could jeopardize privacy. If public spaces are used, users should remember that if funds are moved with one address to another user addresses, this history will be traceable. If privacy is paramount, users might also want to take care not to publish information about purchases and transactions that could allow another person to identify any of the Bitcoin addresses.
IP addresses may be of concern to some users; because Bitcoin is a peer-to-peer network, transactions’ relays and IP addresses can be logged. Users might want to consider hiding their IP addresses with a tool like Tor when using Bitcoin so that their IP addresses won’t be logged.
Users should also be aware that math-based digital currency is a considered a technology that has the potential to vastly alter banking and commerce in a way that is similar to how the Internet has altered communications. Virtual Currency is treated as property for U.S. Federal Tax Purposes, and general rules for property transactions can apply to Bitcoin users at tax time.
North Dakota hosts many international tourists, seasonal agriculture workers, oil workers, and international university students. These international visitors should have the ability to spend Bitcoin in North Dakota or convert their Bitcoin to USD. Bitcoin is coming to North Dakota and state regulators, city government, local merchants, and consumers can be excited about the many opportunities that come with it.