Coinme Report Finds Crypto Ownership Increases Blockchain Literacy

In
a
recent
cryptoliteracy.org
survey
sponsored by Coinme sponsored by Coinme”>

sponsored
by
Coinme,
28%
of
U.S.
respondents
stated
they
don’t
invest
in
cryptocurrencies
because
they
don’t
understand
the
technology.
The
survey
also
found
that
simply
owning
a
small
amount
of
crypto
correlates
with
a
55.5%
higher
level
of
blockchain
literacy.

This
Catch-22
has
long
stood
in
the
way
of
broader
adoption
of
crypto.
A
basic
understanding
of
the
blockchain
technology
that
underlies
bitcoin
and
other
crypto
assets
is
a
huge
driver
of
adoption,
but
often
even
those
who
are
curious
will
not
seek
out
education
on
blockchain
and
crypto
if
they
don’t
already
hold
some
digital
assets.

On
the
plus
side,
the
report
suggests
that
as
purchasing
and
using
crypto
becomes
easier
for
retail
investors
and
the
average
consumer,
crypto
literacy
will
improve.
Options
like
Coinme’s
bitcoin ATM network bitcoin ATM network”>

bitcoin
ATM
network,
with
thousands
of
machines
situated
in
well-established
retail
locations,
allow
more
people
to
safely
access
crypto,
and
the
hope
is
that
this
leads
to
more
education
on
the
technology’s
benefits
and
use
cases.

“Empowering
individuals
with
the
knowledge
to
navigate
the
evolving
landscape
of
digital
currencies
is
at
the
core
of
our
mission,”
said
Neil Bergquist Neil Bergquist”>

Neil
Bergquist,
CEO
and
co-founder
of
Coinme,
in
a
statement
on
the
report.
“A
concerted
effort
needs
to
be
made
to
enhance
crypto
literacy.”

Coinme
has
been
at
the
vanguard
of
this
educational
push,
initiating
Crypto
Literacy
Month
in
2021.
The
company’s
trajectory,
from
launching
the
first
state-licensed
bitcoin
ATM
in
the
U.S.
in
2014
to
now
powering
the
world’s
largest
network
of
bitcoin
ATMs,
parallels
crypto’s
rise
to
mainstream
relevance
over
the
past
decade.

Bergquist
is
optimistic
that
this
trajectory,
along
with
the
increasing
use
of
other
mainstream
exchanges,
will
continue
to
steer
the
public
toward
a
greater
understanding
of
crypto.

“I
think
right
now
we’re
at
a
stage
where
there
is
really
an
education
problem,”
he
says.
“It’s
important
to
try
to
educate
people
on
how
crypto
is
solving
problems
that
exist
with
our
current
monetary
system
and
financial
service
providers.”

Finding
‘A
Trusted
Way
To
Buy’

When
Neil
Bergquist
and
Michael
Smyers
founded Coinme founded Coinme”>

founded
Coinme,
bitcoin
was
still
a
niche
concept
known
primarily
to
dedicated
enthusiasts
and
speculators,
and
it
was
difficult
and
risky
to
access.

“Back
then,
the
way
you
bought
bitcoin
was
you
meet
a
stranger
online,
go
to
a
coffee
shop,
give
them
cash,
and
that
person
gives
you
a
USB
stick
with
bitcoin
they
likely
mined
on
their
computer,”
says
Bergquist.
“That’s
wholly
unregulated,
and
it’s
potentially
very
dangerous.
We
wanted
to
protect
customers
and
offer
a
trusted
way
to
buy
bitcoin.”

In
2014,
Berquist
and
Smyers
purchased
three
bitcoin
ATMs.
After
receiving
a
virtual
currency
money
transmitter
license
from
the
Washington
State
Dept
of
Financial
Institutions,
these
ATMs
were
installed
at
locations
like
a
local
restaurant
and
a
mall
in
Seattle,
a
first
for
the
U.S.
While
public
awareness
was
still
minimal
at
the
time,
the
dramatic
2013
price
surge
from
$214
to
over
$1,200
signaled
that
a
wider
bitcoin
boom
could
be
imminent.

Sure
enough,
2017
was
crypto’s
watershed
mainstream
moment.
As
bitcoin
reached
almost
$20,000,
suddenly
everyone
wanted
in
on
the
action.
And
Coinme,
with
its
physical
ATMs
providing
an
entry
point
to
purchase
bitcoin,
was
perfectly
positioned.

Soon,
Bergquist
and
Smyers
realized
that
installing
crypto-specific
ATMs
would
be
too
capital-intensive
and
wouldn’t
be
enough
to
meet
the
booming
demand.
Instead,
they
opted
for
integrating
an
API
into
existing
cash
machine
networks
via
partnerships.

The
pivotal
deal
came
in
2018
when
Coinme
joined forces with Coinstar joined forces with Coinstar”>

joined
forces
with
Coinstar,
known
for
its
coin-cashing
kiosks
at
grocery
stores.
By
installing
its
API
into
Coinstar’s
vast
network
across
the
U.S.,
Coinme
enabled
consumers
to
purchase
bitcoin
at
familiar
retail
locations
just
as
easily
as
inserting
a
bill
into
the
machine.
A
partnership
with
MoneyGram
soon
followed,
and
today
the
company
enables
cash-to-crypto
transactions
at
over
40,000
physical
locations
throughout
the
U.S.

Adoption
Through
Accessibility

At
its
core,
Coinme
is
focused
on
boosting
crypto
adoption
by
ensuring
accessibility.
Its
expansion
into
Coinstar
and
MoneyGram
locations
has
democratized
purchasing
bitcoin.

This
plug-and-play
functionality,
coupled
with
the
reassuring
familiarity
of
mainstream
retail
outlets,
lowers
the
barriers
to
entry
for
curious
newcomers
interested
in
testing
the
waters.

“Coinme
wants
to
make
the
cash-to-crypto
buying
experience
as
simple
as
possible,”
Bergquist explained Bergquist explained”>

Bergquist
explained

when
the
company
enabled
instantaneous
crypto
purchases
with
no
need
for
a
redemption
code
via
Coinstar
kiosks
earlier
this
year.
“Now,
the
purchase
is
linked
directly
to
the
customer’s
mobile
phone
number
and
loaded
into
their
Coinme
wallet
all
before
they
leave
the
grocery
store.”

The
ability
to
conduct
cash-to-crypto
and
crypto-to-cash
transactions
at
physical
locations
is
key
to
boosting
widespread
adoption.
Enabling
seamless
bitcoin
and
cryptocurrency
liquidations
into
cash
counters
a
common
criticism
that
crypto
has
no
real-world
utility.

“One
of
the
misconceptions
is
that
you
can’t
buy
anything
with
bitcoin,”
says
Bergquist.
“Well,
now
you
can
liquidate
your
bitcoin
for
cash
and
buy
anything
you
want.”

 

The
Path
Forward

While
the
2023
cryptoliteracy.org
and
Coinme
survey
results
highlighted
some
concerning
gaps
in
the
public’s
understanding
of
crypto
and
blockchains,
Coinme
and
collaborators
like
CoinDesk
are
actively
developing
educational
curricula
to
increase
comprehension.
Cryptoliteracy.org
provides
free
courses
and
quizzes
covering
everything
from
basic
definitions
of
crypto
terms
to
more
advanced
concepts
like
DeFi
and
staking.

However,
the
survey
data
suggests
that
nothing
accelerates
blockchain
literacy
quite
like
hands-on
participation
and
crypto
ownership
itself.
By
making
it
virtually
effortless
for
anyone
to
purchase
bitcoin
at
their
local
retailers,
Coinme
is
providing
an
ideal
grassroots
on-ramp.

“Our
mission
is
to
provide
more
individuals
around
the
world
with
access
to
a
better
financial
future
via
cryptocurrency,”
said
Bergquist
in
an
announcement
of
the
company’s
recent
partnership
with
the
CiNKO digital wallet CiNKO digital wallet”>

CiNKO
digital
wallet,
a
collaboration
that
reaches
throughout
Latin
America
and
the
Caribbean.

As
a
new
generation
of
consumers
holds
their
first
cryptocurrency
and
explores
real-world
use
cases,
comprehension
is
poised
to
increase
in
lockstep
with
adoption.
The
crypto
literacy
gap
may
persist
in
the
short
term,
but
hands-on
education
at
the
ground
level,
facilitated
by
the
access
offered
by
bitcoin
ATMs,
could
ultimately
prove
to
be
a
powerful
instructor.