Derek Muhney on Bitcoin ATMs at Coinsource

0:00I'm Ashton Addison from Block West capital for investment pitch media and today on the Crypto Coin Show we have Derek Mooney the Executive Vice President at coin Source Derek welcome to the show and thank you for taking the time today thanks for having me you're very welcome excited to dive into the world of Bitcoin getting it into the hands of people easily and conveniently with

0:22Bitcoin ATMs as well would love to jump into what coin Source has been doing with Bitcoin ATMs in helping the mainstream adoption of Bitcoin so let's break right into it with just starting with a little bit about the background on coin source and how you got involved with it and then we'll dive into all the details yeah so coin Source we're a obviously

0:44as you know National Bitcoin ATM operator and software developer and we developed our own proprietary operating software as well as our kyc AML compliance aspect of it and we're a little over seven years old now actually approaching eight years and I got into it that was one of the very first employees hired I was number three just knew the CEO Sheffield

1:08Clark from a previous Venture and seemed pretty exciting what he was wanting to bring to the market with you know cash to crypto and providing the Bitcoin to the masses you know regardless of whether they're banked or under banked or unbanked it's it's really been an exciting Journey for these past seven plus years that's incredible and I've spoken to a

1:31lot of people over the years that were interested in getting their first Bitcoins just getting involved and then dipping their feet in and I found that Bitcoin ATMs were a great solution for you know those first-timers and I can imagine over the past eight years that's been the case for many people and now it's only continuing to grow can you talk a little bit about that

1:52that eight year journey and how exactly big coin source is now yeah no absolutely so we started with just one kiosk in Las Vegas roughly eight years ago and from there we've grown to have we've got thousands of them across the country in 46 States where the only operating Bitcoin ATM Network that has the bit license in New York so we've got you could

2:17say exclusivity there our model has always started and been really founded from a compliance Centric and customer-centric model so the journey with the customers has been really really exciting to track just because you know once they do one transaction with us they realize just how easy it is you know we've got kiosks located Community located

2:42In great locations it's been another recipe for our success is that we've always chosen very high quality locations you know we focus on National Partnerships and locations to make it very safe and efficient and effective for people to go with cash and buy Bitcoin you know you always want to find the quality areas it's never been about quantity it's always been about

3:04quality you know people want to feel safe they want the convenience factor but they also want to be able to get in and out you know at their at their Leisure and at their convenience so that's what really what we've been focusing on and the loyalty and the repeat business that we've seen you know yeah yes and to your point there's been a lot of purpose-driven customers

3:23of ours you know the first time I you know I want to get into crypto or I want to buy Bitcoin this seems to be the safest way the most tangible way just because it's an actual kiosk you know they can talk to our Live Customer Support they need any help they get a receipt both digital as well as printed it just seems a little bit more real to them if you will than you know going on

3:41to an exchange and you know providing their banking info and stuff like that and then buying this digital currency that they'll never rebuild a c touch smell or fold so it's been really really exciting as far as that goes that's very exciting congratulations on the growth and it's great to hear about the bit license as well I know it's a little bit of a bugger in New York but to get that

3:58obviously helps in New York's a huge Hub of people to get involved in sort of the old Financial system moving over to the news so I feel like that would be a great area as well yeah now can you walk me through you know say somebody's watching the video and they still haven't gotten their first Bitcoin they look up on the map you know where's the closest coin Source ATM they

4:23take a mobile wallet and some cash or something and they go to the ATM you know how would you explain that to somebody that you know your grandma calls she's like I want to use the coin Source ATM how do I do it yeah it's a very easy process So speaking of Bitcoin while it's where wallet agnostic we do not require you to have a you know a coin Source

4:42specific or proprietary wallet it's with whatever wallet you feel you know most comfortable using feel free so I always encourage everyone to you know do their own research and choose the one that best fits their needs there's a lot of really good decentralized apps out there to suit those needs of each individual so First Step I'd say is

5:05obviously download a Bitcoin wallet with us you do have to create an account we don't retarget or remarket or sell the information it's just to verify the identity of the person and as a return we also offer the lowest rates in the entire Bitcoin ATM industry so it's a one-time account creation go to coinsource.net takes just a few minutes but from there you're flying it's a it's

5:27a very easy process then you'd find the closest location to where you're at in the country you go there you enter your phone number in which acts as your account number it asks you know where would you like to send the Bitcoin that's where you would scan your Bitcoin wallet you insert the you know the amount of cash you'd like to buy in Bitcoin with we offer limits up to 8 500

5:45each day for you to buy and from there it's it pretty much instantaneous you know you'll get a text message a receipt as you'll also get a printed receipt and it shows obviously you know the amount that you purchased the blockchain link so you can track the confirmations on blockchain and it's that simple that's amazing start to finish start to

6:10finish it's less than 60 seconds you can buy Bitcoin cash according close incredible and 8 500 sounds like a great limit for you know most people per day you know obviously if you're going to be doing a lot more there's probably other avenues besides the ATM but that sounds like more than enough for most people now going back to how you talked

6:32about the expansion and just having thousands of units now and also getting into New York are you seeing specific areas where you're looking to increase the amount of ATMs there even more and also I'm just curious on you know the hurdles of expanding obviously getting into New York that bit licenses is you know there's like regulations you have to go through

6:54Do you think that will be an issue in other areas moving forward as Bitcoin becomes more mainstream I wouldn't necessarily say an issue but we definitely see and we've been encouraging this from the very beginning is more stringent and structured regulation so as as growth continues just and in general just as mainstream adoption continues

7:18You know we encourage there to be more regulation and more just Safety and Security as far as how this goes you know there's there's no secret recipe of how we got the bid licensity or you know and there's no secret sauce that we've got per se as far as how we've gotten some of our national Partnerships you know we just recently announced our partnership with

7:41Quick Trip in the midwest they've got 811 locations USA Today rated them the number one gas station convenience store in the country it was a very easy decision for them to make as well as the New York Department of Financial Services to create a submit license and it's it all boils down to our compliance you know we most certainly have the most robust

8:01compliance you know aspects of the industry and it's has definitely forged our a position in New York with that exclusive bit license and support our position with these big retailers wanting to choose us and have our Bitcoin ATMs in their locations just because you know without regulation without confirming the identity of the individual there's just a lot of

8:27increased risk and you're also dealing with you know you don't know who you're dealing with there's there could be very you know nefarious or questionable characters that are taking advantage of a really great technology a really great financial solution and financial service and you know that's just not scalable so we from day one and dollar

8:47one have always been you know leading with compliance and definitely pride ourselves on being the leader in the industry as far as that goes that's great to hear and I can imagine over you know the past eight years there's been multiple bull cycles and tops and then you know long bear markets as well and it seems like 2021 and 2022 you know at the end

9:09of 2021 it was like there was a top and now throughout this year it's sort of been dwindling down and a lot of people that are just getting into Bitcoin you know they usually are buying when there's all the hype and throughout this year as it's been going down there's been not as much traction I'm curious if you know the growth of the growth of coin source and the expansion

9:29and just you know if you're obviously able to track you know how many people are buying and selling through the ATMs has that slowed down a lot through the bear Market or are you still seeing like increased traction from new areas despite what the market conditions look like well what's really neat about about having kind of the Optics that we have as far as our

9:51customers and the buying patterns that they that they do given the fact that there's a finite amount of Bitcoin it's been really interesting to see that you know when when the price goes up people you know those fun acronyms right the fear of missing out you know they want to put much to the ATMs and you know buy Bitcoin before it goes even higher

10:11well the price goes down they look at it as a fire sale in a discount so they also go to the ATM so it's been a it's a great business model just because you know we're providing you know Bitcoin and the needs of the individuals who want to buy the Bitcoin regardless of the price of Bitcoin and you know a lot of these people are are not just buying it for an investment

10:33purpose you know there's one third of the world's population is either unbanked or under Banks so a lot of these individuals that utilize our kiosks knowing that it's the lowest rates in the entire Bitcoin ATM industry knowing that they've got a safe and secure means of transacting and purchasing Bitcoin with cash through coin Source you know they're they're

10:50utilizing Bitcoin for their day-to-day needs and so there is no so you know pause if you will in their buying cycles and buying patterns because of the price of Bitcoin so it's it's been very very consistent and you know the growth rate has been very very smooth that's great to hear and you know when when the price does top and it's their

11:13sort of hype there's also a lot of new people that you know they're not very technical Savvy they're getting involved as well I've heard stories in the past about you know potential scammers trying to convince people to go to bitcoin ATMs and you know with take some Bitcoin out and send it to them or something like that I know that has happened in the

11:35past how does coin Source sort of make sure that doesn't happen and you know Grandma doesn't get scammed or buys Bitcoin not knowing what she's doing yeah no it's a great question so we've got a lot of safety protocols and plays for you know brand new account creations and if there looks to be a very large initial purchase we have our compliance team customer

12:00support team actually reach out to the individuals before the transaction is complete just to ensure that they you know are not falling victim to a scam and you know unfortunately we will never run out of examples of bad people taking advantage of good things and you know scams have been going on long before Bitcoin has ever even created so with the right kind of safety

12:25protocols it put in place like we have as well as you know if it just just the communication you know I'm a big advocate of you know continuing education for this industry and for the technology and it all boils down to some common sense also at times you know something sounds too good to be true typically it is you know you're not going to find a you know Mint Condition

12:4964.5 Mustang that's you know worth well over a hundred thousand dollars but you know for a thousand dollars in Bitcoin you know somebody will ship you the plus it's it's so again it's it's some of it is common sense but yeah unfortunately there are some scams out there that people have you know we've heard have fallen victim to and you know just

13:10given the very nature of Bitcoin you know scammers have been targeting individuals that way so I always just you know it's it's buyer beware you know never send Bitcoin to somebody that you don't know I mean it's just there's just some core competency you know protocols that you just always have to be wary of you know you wouldn't send an envelope full of cash to a stranger

13:30that's asking you for it so you know Bitcoin there's you know it's the same thing just you know know where you're saying it know who you're sending it to and just use common sense definitely and speaking of envelopes of cash these Bitcoin ATMs there's a lot of people depositing cash into the ATMs obviously you know what well Bitcoin is digital and you can transfer it around

13:56you don't have to actually carry cash with you with these ATMs that they have cash in them and you have to take that out eventually otherwise you know whether this cameras are targeting an individual person or they're trying to actually break into the ATM and steal cash out of it how do you guys deal with you know the cash and the brick and mortar side of the transaction

14:15well it's another there's a multitude of layers of that as far as safety goes and cash management so you know our cash Logistics and business model includes obviously very very tight armored car cash pickup Services we you know there they go to the kiosks you know when very very often whenever there's a x amount of cash in

14:41the kiosks and to reduce that risk but we also have you know the kiosks have have throughout the business life a point source and the manufacturer of the kiosks you know they've built newer models stronger models safer models much harder to get into you know just like traditional ATMs obviously it's it's all about you know where do you place them in the store you

15:06place them right next to a glass wall that somebody can you know back a truck up into a gas station you know you've heard about it all the time on the news people play regular ATMs so it's it's there's a lot of strategies in place with that but fortunately I think that also with our national retailer Partnerships we have such as quick trip you know you've got

15:27You know it's it's they're open 24 hours they're very well lit they're very well known and they're also very well protected so you know that versus finding some place you know say for example you know in a not so great area and like the south side of some you know Shady City it's probably wouldn't be a good location for a Bitcoin ATMs for that risk

15:50and so we always like to make sure that where we place our kiosks or where you yourself would feel comfortable going into with cash and so that also is another good risk mitigator it's good to know and yeah you know I would guess it's just as hard to break into a Bitcoin ATM as it is you know regular Bank ATM nowadays it's pretty tough to do you know and you hear

16:14about it very very seldomly but it still happens as you said you know there's scams that have been out there and theft and crime that's out there and this is all predates Bitcoin it's not it's not Bitcoin that's the criminal it's criminals exactly yeah now looking forward towards the future hopefully there's you know lots of great growth and more awareness for

16:38for Bitcoin in the next year or two as hopefully the next cycle continues how is coin Source prefer preparing for the future in where are you looking to grow and how are you looking to expand to bring Bitcoin to more people well I it all really has been very consistent with our business model that we you know that we forged from the very

17:00beginning it's it's provide Bitcoin to the masses at the lowest possible rates that we can that we can offer and part of that we're able to do is because we have developed our own Software System not just the operating software but again the compliance side of it so there is no middleman you know we're all about you know direct single Source solution

17:22provider we're the only singles first solution Provider from from start to finish it's all exclusive through coin source and as a result of that you know we don't have any kind of middleman cost if you will of having to pay a software provider to use their Network and you know Regional or Community Banks you know we've got national banking actually

17:42it's another exclusive aspect of coin sources that we've got bank accounts in all 50 states and you know that is strategically positioned us to be able to keep the costs down because we've got you know vaults in all 50 states so we're able to manage the cash effectively and efficiently to always make sure that this is a very scalable model so as demand continues to increase

18:05for Bitcoin and for purchasing Bitcoin you know we are really carrying the torch as far as you know providing that at the lowest rates possible and so it's a very easy recipe to continue to expand and as demand continues globally coin Source will be there incredible and any insights and you know guesstimates says no one knows the future Derek on where you see Bitcoin

18:33going within the next year and you know will we be heading back into the next bull market if there is trouble and you know the U.S economy seems like it's uneasy do you think Bitcoin will benefit from that so I'm not one to ever speculate you know where bitcoin's gonna go but what I can say is that I don't think that it's going to be going anywhere

18:55I don't think it's going to be going away I think that as the economies around the world continue to fluctuate the way that they have I think that it's only going to be more attractive for people to diversify their financial portfolio and if they haven't already taken a dive into the world of crypto and Bitcoin I think that it's going to continue to be very

19:20appealing to them and again that's why we've strategically positioned ourselves to make it as easy as possible for those individuals I agree Derek and for the people that want to look where's the nearest coin Source ATM or start setting up an account with coin Source what's the best way to learn more about that straight on our website coinsource.net now you can create your

19:44account there you can find your closest location there it's a it's a very easy you know map system to where it knows where you are and it just points you in the direction of the closest gas to you sounds great and I will leave that link in the description box below as well thanks for your insights into the Bitcoin ATM world and into Bitcoin I appreciate the time Derek and let's

20:06follow up in the near future sounds good action thanks for having me again