Cryptocurrency ATMs are all over CT, but do people use them?

There are hundreds of cryptocurrency ATMs in the state, but how does the technology work and do people actually use the machines?

The ATMs, which are mostly located in gas stations and convenience stores, allow a user to buy bitcoin, or sometimes other cryptocurrencies, for cash or via debit card.

CoinFlip Co-Founder and Chairman Daniel Polotsky said a transaction starts with the user entering their personal information — what information is required depends on the amount they are purchasing — then scanning a QR code linked to their digital wallet, inserting payment and confirming the purchase. CoinFlip then sends the cryptocurrency to the user’s digital wallet from its digital wallet.

“Technically what’s happening is that it’s going from one bitcoin wallet to the next,” Polotsky said. “Like it’s actually sent. We know where to send it based on the QR code which is attached to their wallet address.”

He said the company, which has machines located throughout the country, had $50 million in transaction fee revenue in 2020 and almost $100 million in 2021.