Bitcoin and Crypto: Tips for BeginnersKiosk Marketplace – Kiosk Marketplace | Jewelry Dukan

A group of self-service device operators see a bright future for Bitcoin and offer ideas on how to catch up.

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Bitcoin and cryptocurrency continue to fascinate people of all ages and walks of life, and the self-service device industry, a payments-centric entity, is no exception.

As cryptocurrency expands, so does the need to educate newcomers on this highly technical and controversial subject. Hence, the recent Amusement Expo International in Las Vegas offered a session entitled “Cryptocurrency and Coin-Op, Putting the Pieces Together”.

One of the challenges newbies face when learning cryptocurrency is the amount of misinformation that crypto veterans claim is pervasive.

Panelists Conrad Storz, Mike Lee, Brian Halsey, and Tom Graham, Jr. discuss the importance of learning about Bitcoin and cryptocurrency.

“Don’t go to big media like CNN or the Wall Street Journal,” panellist Brian Halsey, attorney and professor of business law, said during the AEI session. He says reporting at these outlets is biased and inaccurate.

“You have to do your own research and start with the basics,” Halsey said.

Halsey and fellow panelists Mike Lee, president of Automatic Coin Vending in Chester, Pennsylvania; Tom Graham Jr., owner of Games Unlimited Inc., Milbank, South Dakota; and Conrad Storz, owner of Storz Amusements in Jeffersonville, Louisiana agreed that people have need to learn about cryptocurrency gradually.

“Just don’t spend money you don’t want to lose,” Lee said, adding that a one-day session isn’t going to educate anyone enough about cryptocurrency. “The space is just too big, too wide, too complex.”

Bitcoin has a future

Nonetheless, panellists agreed that, despite the claims of many critics, the cryptocurrency has a bright future.

“It’s here, it’s real, it’s going to be here, it’s not going away, it’s got the attention of everyone on Facebook right down to the United States government,” Storz said. “In the future, if a person doesn’t have at least half a bitcoin in their pocket, they will be lower class.”

Regarding Bitcoin, the leading cryptocurrency, “some institutional investors are taking money off the table; eventually they’ll come back in,” Halsey said.

If the government regulates bitcoin, which Halsey expects, major institutions will invest significant sums, which should offset price swings that have made many potential users suspicious.

“The rule is that you should never sell your bitcoins,” Halsey said. In 2017, he sold $650 worth of bitcoin to buy an AR-15 rifle. Now he has a $40,000 AR-15.

“I’ll be really upset if it’s worth $1 million,” he said.

As more and more people buy and use bitcoin, the price is expected to increase in the long-term as the supply of bitcoins is limited by its programming code.

Bitcoin price fluctuates

Halsey acknowledged that bitcoin’s price fluctuates sometimes in the context of stocks and sometimes with economic shocks like news of inflation.

“But in the long term, because there’s only 21 million bitcoins available (ever) and that’s it,” he said. “Bitcoin inherently cannot grow past the 21 million that is hard-wired into the system. For this reason, it protects in the long term.”

He said hyperinflation (in government currency) will help bitcoin, which he sees as a deflationary asset.

“If Bitcoin adoption continues, it will behave more like an inflationary asset,” he said.

who to listen to

Halsey encouraged newbies to listen to educational crypto podcasts. In his opinion, the best podcasts are The Breakdown series with Nathaniel Whittemore. These are 15-minute daily analyzes of macroeconomics, bitcoin, geopolitics, and power shifts in the “big picture,” as described on Apple Podcasts.

Another podcast he recommends is What Bitcoin Did by Peter McCormack, which can be accessed under its title. These are 60 to 90 minute podcasts that are released weekly. Halsey said it was excellent for beginners.

The next recommended podcast for beginners is Anthony Pompliano’s The Pomp Podcast, a daily 30-minute podcast.

Other helpful sources according to Halsey include:

  • Investor’s Podcast Network’s “We Study Billionaires,” a semi-weekly podcast featuring guest investors.
  • “The Bitcoin Standard” with Saifedean Ammous, which Halsey called the most famous Bitcoin book. He recommended waiting until you understand the basics before reading this book.
  • Stephan Livera’s Bitcoin Podcast, also on the technical side, helps explain how Bitcoin and money in general are developing.
  • Cryptocurrency news sites like Coin Desk and CoinMarketCap.

“You don’t have to listen to every episode of every podcast,” Halsey said. “You don’t have to know everything before you start.”

Twitter is also a good source for getting the latest information about cryptocurrencies, he said, but ignore news reports older than two or three months.

“In the crypto world, a week is a year in real life,” Halsey said. “Start the new stuff and go forward; don’t go backwards.”

Cryptocurrency apps like Coinbase, Swan, and Cash App are helpful for beginners, Lee said. These apps allow users to set up an account and link their bank account and set a specific amount to buy bitcoin automatically.

Bitcoin mining explored

While the panelists agreed that newbie traders should start buying bitcoin as soon as they found out about it, they discouraged listeners from attempting to mine bitcoin. Mining is the process by which new bitcoins are created. This is achieved with sophisticated computers. Bitcoins are created when the computer solves a complex mathematical problem.

Bitcoin mining computers now cost about $10,000 each, Halsey said, and it would take about a year and three months to recoup the investment in the mining equipment, not counting electricity costs .

One option is to join a mining pool, a group of miners working together to mine and distribute payments based on each party’s contribution to the pool.

However, one listener who said he joined a mining pool made up of tens of thousands of people said the odds of making bitcoin from the miners are “one in a million.”

Bitcoin and self-service payment

Another listener asked the amusement operator panelists why they don’t offer bitcoin acceptance on their amusement machines.

Lee replied that the processing of bitcoin transactions is not fast enough at the moment and that bitcoin payment technology for self-service devices has not developed enough.

Another listener volunteered that the Lightning Network, a second layer added to the Bitcoin blockchain that enables off-chain transactions, could enable faster transactions and be integrated into payment systems for gaming devices.

While processing time remains an issue, one benefit of using Bitcoin as a payment method is that transaction costs are very low compared to credit cards.

Accordingly, Halsey said that a stablecoin, a computerized token representing one dollar, can also be used for payment and has no transaction fees.

“In terms of transactions, it will either be the Bitcoin Lightning Network or probably stablecoin,” Halsey said.

Photo: Networld Media Group.

Elliot Maras is editor of Kiosk Marketplace and Vending Times. He brings three decades of unattended retail and commercial hospitality experience.

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