As the world buzzed Thursday about the purported unmasking of alleged Bitcoin inventor Satoshi Nakamoto, hundreds of local consumers and businesses were already using his virtual currency in their everyday lives.
The Bitcoin, invented in 2009 and worth about $650 a piece right now, is already accepted in at least 30 local businesses from the South Bay to the Inland Empire, according to websites like coinmap.org and usebitcoins.info. Hundreds of Los Angeles area residents participate in at least 10 Meetup groups that gather regularly to discuss the currency, ask questions and figure out how to use it.
And most involved say that Bitcoin’s popularity will only keep going up from here.
“The Bitcoin is really hot and it’s going to get hotter,” said Chris Voss, 46, of La Habra, who started his own Los Angeles area Bitcoin Meetup group. “It’s definitely a trending currency that is going to become probably the standard of currency in the world in the future the way things are going. Either it or something like it will probably replace currency as we know it.”
He added that although there have been some concerning reports of fraud and hacks in recent months like the collapse of Bitcoin exchange Mt. Gox, he expects that as the currency gains steam, companies in the industry will become stronger and more secure.
“It’s kind of a bit of the Wild West right now,” said Voss, adding that he knew someone who lost more than $2 million in the Mt. Gox collapse. “That’s why I haven’t put a bunch of money in Bitcoin because I’m waiting for it to get better.”
Many large scale and local companies are already jumping on the bandwagon, especially since a Bitcoin transaction doesn’t come with a credit card fee. And the feeling is mutual between companies and employees eager to use Bitcoin; Overstock.com has already sold $1 million in Bitcoin transactions since it began accepting the currency in January.
Alex Bryan, who owns Call the Ninja computer repair service with locations in Culver City and Torrance, said he has had customers seek him out just to pay with Bitcoin. Since he began allowing customers to use Bitcoin, which comes with a 10 percent discount, he has seen two to three customers pay with it each month.
“Bitcoin is still in its formative stages so the people that have it oftentimes they are passionate about finding places that use Bitcoin as currency,” Bryan said. “It just makes sense economically and people want to try it. It’s simpler and cheaper for us to take that versus any other payment method.”
To get Bitcoins, people can either “mine” them from Internet code using computer programs or purchase them from local exchanges. Online computer and technology retailer Newegg Inc., headquartered in Industry, said products for Bitcoin mining are “very popular,” although the process has become more difficult and more expensive as Bitcoins have become more popular. The company said it is “seriously considering” accepting Bitcoin as a form of payment in the future.
“Late in 2011, mining Bitcoin was feasible for most PC owners, but as more were mined it became difficult to obtain them and mining- specific hardware was invented,” Newegg spokesman Soren Mills said. “Today, Bitcoins are primarily mined in Bitcoin farms and individuals choose to mine other cryptocurrencies with consumer- grade hardware then exchange them for Bitcoins.”
To make the virtual currency even more accessible to the average person, Bitcoin ATMs have popped up in Texas, Canada and Europe, and a few local start-ups are working to bring them to California this year.
CA Cryptocoin plans to establish two Bitcoin ATM machines, which it has already purchased from Robocoin, in Los Angeles within the next few months.
“In California in general there is just a huge market,” said Cailen Sullivan, a CA Cryptocoin co-founder. “Almost everyone I talk to is interested. There is definitely a need for it.”
The company has launched an Indiegogo page, which has already raised more than $7,000 for the ATM implementation. Sullivan, who lives in Orange County, said he hopes to install ATMs throughout California in an effort to make the currency accessible to everyone, with an emphasis on security and following federal and state currency regulations.
“It’s gotten to the point now where Bitcoin is well known enough where you can bring it up in a dinner conversation but there’s not really a place for people to got to start using it,” Sullivan said. “So the idea now is we have lowered the barrier to entry … making it more available to the masses, which, in turn, will bring more liquidity.”