Many observers still believe that the controversial cyber currency is a fraud, and very few are certain of its origin, but despite the uncertainty, the use of Bitcoin continues to spread. Recognized retailers, such as Dell Inc. appear to be slowly warming to the digital currency, and recent reports indicate that some units of EBay and PayPal are currently involved in deliberations to accept payments with Bitcoin.
Calgary-based Cavirtex, which a provider of Bitcoin virtual currency exchange services is unconcerned about the controversy and VP of business development, Kyle Kemper is proud of the company’s decision to add six more Cavirtex Bitcoin Teller Machines to the Toronto landscape. The six new machines bring the total number in Toronto to 19, which the company says, is the highest concentration of Bitcoin machines on the planet.
The currency, which remains unregulated, was developed in 2009, but there is still a mystery surrounding the development. Much of the appeal lays in the fact that transactions can be processed with a greater degree of anonymity, and the fees are much lower. Users are now believed to be more in control of their money, and can function as their own bank. Skeptics, however, warn that the digital currency is also subject to volatility, and as with other forms of digital processing has attracted the criminal element.
The company has signed an agreement with Gateway Newsstands, which operates kiosks throughout Toronto’s subway system. Users can go any of the BTMs, and enter the number of their mobile phones, to receive a confirmation number which is then entered in the BTM. The code of the bitcoin wallet which is giver to all holders of Bitcoin accounts is scanned, or printed for non-account holders to scan. Buyers will then place the cash required for the purchase into the machine, where the system will process the transaction from a corresponding seller. The transaction, which can be up to maximum of $3000 worth of bitcoins, will be completed with minimal input and the buyer will be issued a confirmation and recorded into the purchaser account. All bitcoin users are able to view the transaction, which is recorded in a virtual ledger.
Kemper says that Cavirtex has processed more than $93 million in Bitcoin transactions, since the virtual currency exchange was created three years ago, and there are more than 40,000 registered users. He explains that Toronto may be seen as an excellent fit for Bitcoin Teller Machine, because it is seen as the financial capital of the country, however despite the apparent promising potential of the product launch which was held in the financial district, several countries have raised concerns about the security, and investors are warned that because it remains unregulated, very large swings in the value can be expected.
One Bitcoin is currently valued at approximately $600, and one the next moves, may be to provide Cavirtex virtual currency machines to dispense in exchange for bitcoins.