If you follow Bitcoin, the chances are good that you’ve heard about and read about consensus and the blockchain at some point. While consensus isn’t something you have to have a deep knowledge of to buy or sell Bitcoin, it does help to understand how it relates to the blockchain.

You might also hear consensus mechanism and consensus algorithm along with the term 'consensus'. While these aren’t one and the same, they are closely related.  What’s the difference? We’re so glad you asked. Read on to learn more about consensus and the blockchain, consensus mechanisms, and more!

What is a Consensus Mechanism?

It might sound complicated, but the concept of a consensus mechanism is straightforward, especially when it comes to the blockchain. Cryptocurrencies, like Bitcoin, use consensus to validate and verify transactions on the blockchain. By doing so, they’re ensuring the security of the network.

Most blockchains use algorithms, protocols, or other systems for their consensus mechanisms. These systems agree that the transactions are valid while simultaneously helping govern the blockchain. There are various types of consensus mechanisms, which we’ll get to momentarily.

For now, just know that it creates an agreement on the blockchain that transactions are valid, which provides security and trust on its network.

How do They Work?

If you’re using a cryptocurrency that resides on the blockchain, then you’re part of a network that uses a consensus mechanism. This system is a network of users that agree on the validity and legitimacy of any transactions that take place on the blockchain.

By using this type of system, the cryptocurrency is ensuring that every transaction on its blockchain is not only legitimate but also recorded on every copy of it. A well-defined consensus mechanism not only grants security to the network but also influences network fees, energy consumption, transaction speed, and several other details applicable to the blockchain.

Nodes, or computers on the network validate every transaction that takes place on the blockchain. On a proof-of-work blockchain, like Bitcoin, miners compete to validate the next block of the blockchain. The first miner to do so ears the fees associated with the block, which are paid for by users who send and receive funds on the network.

Additionally, the consensus mechanism used by the network ensures agreement (e.g. consensus) and distributes the transaction information accordingly. Because of this, anyone interested in downloading the blockchain to their computer can do so, and run it as a node.

Different Types of Consensus Mechanisms

The most popular cryptocurrency in the world - Bitcoin - uses Proof of Work to attain consensus. However, what many people don’t know is that there are several other types of consensus mechanisms used by other blockchains.

Most consensus mechanisms fall into one of the following categories:

Proof of Work (PoW)

As we mentioned previously, with Proof of Work, miners work against one another to confirm the next block in the blockchain. If they’re the first to do so, they earn rewards from the block. However, Proof of Work requires a lot of energy consumption, which is a turnoff for some within the industry.

Proof of Stake (PoS)

Proof of Stake is another well-known consensus mechanism, used by many popular cryptocurrencies. With Proof of Stake, those holding the largest amount of the blockchain’s currency confirm blocks. The benefits Proof of Stake holds over Proof of Work are that it’s much faster, requires less energy, and completes transactions at a lower cost.

Delegated Proof of Stake (DPoS)

Similar to Proof of Stake, Delegated Proof of Stake allows currency holders to delegate their votes to a user. If the user mints the next block in the blockchain, anyone who voted for that delegate receives a part of the rewards.

Proof of Authority (PoA)

You probably won’t see Proof of Authority very often because it’s not as common as Proof of Work or Proof of Stake. However, it is used by private projects that only give certain permissions and access to the network. With Proof of Authority, validation is based on authority and reputation as opposed to public agreement and consensus.

Bitcoin, the Blockchain, and Consensus

You already know that Bitcoin uses Proof of Work, which is a reason why it takes a few minutes for your Bitcoin to show up in your wallet. And now you know a little more about what goes on behind the scenes during the transaction.  You can add to your wealth of knowledge that Bitcoin Depot BMTs are safe, secure, reliable, and transparent, so you have a positive Bitcoin buying experience every time. 

Double spending is a potential flaw in digital cash systems in which the same single digital token can be spent more than once. Double spending is an inherent problem with digital currency and is one of the key issues that Bitcoin was designed to solve.

How Does Double-Spending Work?

Let’s quickly review the blockchain and how it works, to understand better how double spending might happen. When a block is created, it receives an encrypted number (called a hash) that contains identifiers like a timestamp, information from the previous block, and other transaction data. This data is encrypted with security protocols and algorithms used by Bitcoin.

After the block is verified by a miner, it is closed, and the miner who verified it receives the Bitcoin. When a secret block is created that outpaces the creation of the real block, the network recognizes it as the latest block and adds it to the chain. Then the person creating the secret block simply gives them back any crypto they’ve spent, allowing them to spend it again.

Preventing Double-Spending

In a traditional financial system, double spending is prevented by the use of a central authority, such as a bank, which keeps track of all transactions and prevents the same money from being spent twice. However, in a decentralized system such as Bitcoin, there is no central authority to keep track of transactions. This makes double-spending possible, as there is no way to prevent someone from spending the same Bitcoin twice.

There are a number of ways to prevent double-spending in Bitcoin. One way is to use a proof-of-work system. In a proof-of-work system, miners compete to solve complex mathematical problems. The first miner to solve the problem is rewarded with a Bitcoin and their transaction is added to the blockchain. The blockchain is a public ledger of all Bitcoin transactions. Once a transaction is added to the blockchain, it is very difficult to change or remove. This makes it difficult to double-spend Bitcoin, as any attempt to do so would require rewriting the blockchain.

Another way to prevent double-spending is to use a timestamp server. A timestamp server is a server that keeps track of the current time. When a transaction is made, it is timestamped by the time stamp server. This timestamp can be used to verify the order of transactions and prevent double-spending.

Double spending is a serious problem for digital currency systems. However, there are a number of ways to prevent double-spending. Proof-of-work and time stamp servers are two of the most common methods.

Double-Spending Risks

The risk of cryptocurrency being double-spent is small. The blockchain makes it difficult to do because all blocks must be verified and accepted by a network of miners. In order to get an altered block verified, another user has to accept it.

Even if a miner with elicit intentions was able to make this happen, the blockchain’s consensus mechanism moves so quickly that the altered block would likely be outdated before it got accepted.

Another thing to consider is that because solving these complex hashes takes up so much computational power, it’s incredibly difficult to falsify them.

In fact, there are no recorded instances of double spending anywhere on the blockchain. Double-spending attacks are actually more commonly used for other purposes. There have been attempts at double-spending, but they have all been thwarted.

Double-Spending Attacks

The 51% attack poses the largest risk for blockchains. If a miner controls at least 51% of the power it takes to validate the transaction, they create the block and are awarded the cryptocurrency.

So, when this 51% owner controls a majority of hashing on the blockchain, they get to dictate the transaction consensus and are able to award the currency. However, in popular cryptocurrencies like Bitcoin, this is highly unlikely because there are so many miners that no single user has that much ownership.

Newer cryptocurrencies are more susceptible to this type of attack because they have smaller networks and fewer miners.

The unconfirmed transaction attack is much more common and fools users much more often. If you see an unconfirmed transaction come through, You should not accept it.

How Bitcoin Prevents Double-Spending Attacks

Bitcoin prevents double-spending attacks by using a combination of blockchain technology and proof-of-work consensus.

Blockchain technology is a distributed ledger that records all Bitcoin transactions. Every time a Bitcoin transaction is made, it is broadcast to all nodes on the network. The nodes then verify the transaction and add it to the blockchain.

Proof-of-work consensus is a mechanism that ensures that only valid transactions are added to the blockchain. To add a block to the blockchain, miners must solve a complex mathematical problem. The first miner to solve the problem is rewarded with Bitcoin and the right to add the block to the blockchain.

The combination of blockchain technology and proof-of-work consensus makes it very difficult to double-spend Bitcoin. If an attacker tries to spend the same Bitcoin twice, their transaction will be rejected by the network. This is because the network will only accept transactions that are included in a block that has been verified by miners.

Protect Yourself with Bitcoin Depot

As you can see, while there haven’t been any verified instances of double spending, it’s still possible. It's important to protect yourself from double spending by watching out for any attacks on you and your Bitcoin.

By using a Bitcoin Depot ATM (BTM) to conduct your transactions, you can be sure your crypto is safe and secure. Plus, it’s fast and easy, so find a BTM near you today to get started and stay safe!

Cryptocurrencies have grown in popularity in recent years, with more people purchasing them as an alternative to traditional finance. However, with the increasing use of cryptocurrencies, criminals have found ways to use crypto for illegal purposes, such as money laundering, terrorism financing, human trafficking, and other illicit activities which have plagued traditional finance for decades.

As a result, regulators have become more interested in regulating the use of cryptocurrencies to prevent criminal activities similar to traditional financial institutions. In this blog post, we will discuss anti-money laundering (AML) in cryptocurrency and the measures being taken to prevent such activities.

What is Anti-Money Laundering?

Before we define anti-money laundering, let’s take a second and go over what we mean when we say laundering. This isn’t taking some money and running it through the wash. For the purposes of this post, laundering is the attempt to make the proceeds of illicit activities appear legitimate through placement, layering, and integration into the financial system.  

Anti-money laundering is a set of laws, regulations, and procedures that financial institutions, including cryptocurrency exchanges, must follow to prevent money laundering, terrorism financing, and other financial crimes. The goal of AML is to identify and prevent criminal activities, like human trafficking, before they happen, thereby reducing the risks associated with them.

Why is AML Important in Cryptocurrency?

Cryptocurrency transactions are nearly anonymous, decentralized, and operate outside the traditional banking system, making them an attractive target for criminals. Just like traditional currencies, cryptocurrencies can be used for illegal activities, including money laundering, drug trafficking, and human trafficking. Hence, AML measures are essential in detecting and preventing these crimes.

How Does AML Work in Cryptocurrency?

Cryptocurrency companies are required to comply with AML laws and regulations by performing Know Your Customer (KYC) processes, which involve verifying the identity of their customers. 

The company must also perform customer due diligence to understand the nature of their customer's transactions, the source of their funds, and the purpose of their transactions.

Furthermore, suspicious transactions need to be reported to the relevant authorities. This reporting process involves notifying the Financial Intelligence Unit (FIU) in the company’s jurisdiction of any suspicious transactions. The FIU then investigates the transactions and takes appropriate action if necessary.

How is Anti-Money Laundering in Cryptocurrency Enforced?

Anti-money laundering (AML) in cryptocurrency is enforced through various measures, including regulatory requirements and technological solutions. In many countries, cryptocurrency companies are required to comply with AML laws and regulations, which involve conducting know-your-customer (KYC) processes, customer due diligence, and transaction monitoring.

AML in cryptocurrency is enforced through the use of blockchain analytics tools. These tools are designed to analyze the blockchain and track transactions to identify potentially suspicious behaviors. By analyzing the transaction history of a particular address, financial institutions can assess whether the address may be involved in any criminal activities, such as money laundering or terrorism financing.

What are the Challenges of AML in Cryptocurrency?

The nature of cryptocurrencies presents several challenges to AML efforts. Cryptocurrency transactions can be conducted nearly anonymously, and users can mask their identities through the use of pseudonyms or virtual private networks (VPNs). Moreover, exchanges may be located in jurisdictions with lax AML laws, making it difficult for regulators to monitor their activities.

Another challenge is the use of privacy coins, which provide enhanced privacy features that make it challenging to trace transactions. Criminals can use these coins to transfer funds without leaving any digital footprints, making it difficult for regulators to track their activities.

Anti-Money Laundering and Bitcoin Depot

Bitcoin Depot understands how important it is to comply with AML regulations. That’s why we go the extra mile to ensure we’re doing our part. 

For example, we are in full compliance with applicable anti-money laundering laws and regulations. This includes transactions that are sent to or from known criminal addresses and transactions that are made in a way that is designed to conceal the identity of the sender or receiver.

Additionally, we train our employees on AML regulations. Our employees should know the signs of money laundering and how to identify suspicious activity. 

Cryptocurrency is hot right now, and with it comes a rise in scams. Seniors are particularly vulnerable to these scams, as they may be more trusting of strangers and less familiar with how cryptocurrency works.

That’s not to say there aren’t some pretty savvy elders out there, but in general, those over the age of 60 are prone to falling for scams more quickly than younger people. Here are some of the most common crypto scams that seniors (and everyone, really) should be on the lookout for.

High Rates of Elder Theft

Elder theft and scams are at an all-time high for a number of reasons.

Why Scammers Target the Elderly

Unfortunately, the elderly can be a pretty easy target. Here are a few of the reasons why scammers may specifically target them:

Most Common Crypto Scams Targeting the Elderly

While anyone could fall for these scams, these are the scams that are most likely to target older people or that older people are most likely to fall for.

The grandparent scam

The crypto grandparent scam is a type of scam that only targets elderly people. In this scam, the scammer will pose as a grandchild or other close relative of the victim and ask for money to that they can use to purchase cryptocurrency. The scammer will often use emotional appeals, such as claiming that they are in financial trouble or that they need the money to pay for a medical emergency.

There are a few reasons why elderly people are more likely to fall for the crypto grandparent scam, but when it involves trusting their grandkids or other close relatives, they’re even more likely.

Fake cryptocurrency giveaways

Scammers will often send out emails or social media messages that offer free cryptocurrency. To claim the prize, the senior is asked to provide their personal information or to send money to the scammer. Once the scammer has this information, they can use it to steal the senior's identity or money.

These are easy to fall for because seniors aren’t typically as social media savvy and may not know much about crypto.

Tech support scams

Scammers will call seniors and claim that there is a problem with their computer or internet connection. They will then ask the senior to give them remote access to their computer. Once they have access, the scammer can steal the senior's cryptocurrency or other personal information.

Romance scams

Scammers will create fake profiles on dating websites and social media platforms. They will then target seniors and build relationships with them. Once they have gained the senior's trust, the scammer will ask them for money to purchase cryptocurrency or to help them with a financial emergency.

Additional Tips

If you are a senior, it is important to be aware of these scams and to take steps to protect yourself. Here are some tips:

Final Thoughts

There are a number of things that can be done to protect elderly people from theft and scams and it’s important that, as a community, we help where we can.

It’s important to educate and protect our seniors, and it’s important for seniors to know what to look for so they can be safer on the internet, especially if they want to purchase crypto.

For additional information on Elder Financial Exploitation, please go to FIN-2022-A002 

If you receive a DM (direct message) or text message from someone you don’t know, the best thing you can do is ignore it or delete it. That’s because it could be part of a ‘pig butchering’ scam. 

This scam is alluding to the process of letting a pig get nice and fat before butchering it. Often, these fraudsters will reach out to their target, take some time to gain their trust, then manipulate them into sending large amounts of money before absconding with their funds.

Pig butchering and other crypto scams have grown more prevalent in the past few years. Knowing what to look for and how to avoid them could wind up saving you thousands of dollars.

Fattening the Pig

The first step in the ‘pig butchering’ scam is the contact phase. This is usually a message out of the blue. It might be a text message, a WhatsApp message, or a direct message on social media. The goal here is to develop a rapport with the intended target. 

Scammers will offer an explanation as to why they’re reaching out. They were given your name by a friend and wanted to reach out about an exciting opportunity. Something along those lines. A cursory review might result in realistic photos showing a glamorous lifestyle but don’t be fooled. These are fakes intended to grab your attention.

Over time, the huckster will continue to send messages to their victim about anything other than money. They’ll talk about their “personal” lives, send messages about their activities, or even send pictures depicting them as good samaritans or volunteers. It’s all a sham.

The goal is to gain as much information about their target as possible with the intention of using it later to their advantage. Eventually, the scammer will switch the conversation over to money, gently inquiring about crypto investments.

Prep Work

Now it’s time for the scammer to start laying the groundwork for the slaughter. The purpose of prep work is to convince the target they have a can’t-miss crypto opportunity while confirming the victim has the money necessary to invest.

One way they’ll go about doing this is by sharing screenshots of their “brokerage account.” Again, these are fakes meant to lure the victim further into the trap. They’ll talk about how their “financial guy” has some great intel on the most recent crypto set to explode.

They’ll ask the target to confirm their brokerage account information or request that the victim provide validation that they can afford to buy the crypto or project their “financial guy” recommends. Once they have that information, the scammer will move on to the next step, getting the target to buy.

The scammer will continue to send information regarding how their crypto investments have resulted in great gains and untold riches. If the victim is still showing interest, the scammer will continue to dangle the bait, encouraging the target to continue purchasing or transferring assets. 

Unfortunately, there’s a good chance that these assets are completely fake and being controlled by the scammer or someone they know. However, the end goal is always the same: get the victim to put more and more money toward the aforementioned opportunity.

Time for the Slaughter

Now that they have the victim by the tail, it’s time to bring the pig to the butcher. At this point, the scammer will continue to show their amazing “gains,” encouraging the target to continue to deposit more and more into this incredible crypto project.

When the victim does so, the trap is sprung. The “can’t miss” project will dissolve or the crypto will tank. Perhaps the platform the scammer recommended makes it so the victim can’t access their funds. Whatever the case, the scammer has your money and is likely to disappear, leaving the victim with a mountain of losses and a horrible feeling in the pit of their stomach.

What to Watch For

There are plenty of ways to avoid becoming a victim of a pig-butchering crypto scam. Here are some warning signs to watch for as well as ways you can keep yourself and your crypto safe:

Unknown and unexpected

Don’t answer messages from strangers or unknown people. The conversation may seem innocent enough at first, but it can quickly turn to finances and wind up costing a lot of money.

No video conversations

If the conversation initiator refuses to speak face-to-face, there’s a good chance they’re not the person they’re claiming to be. End the conversation immediately.

Financial inquiry

Never share personal financial information with someone you haven’t met in person. Especially if it’s a new friendship or romantic relationship. If they ask for financial information, immediately end the relationship.

Investment invitation

Even if the scammer doesn’t ask for your personal financial information, they might ask you to invest in specific cryptocurrencies or crypto-related projects. If this is the case, there’s a good chance the project is fake and you’re simply moving funds from your account into theirs before they ghost you.

Incredible returns

If someone is promising you incredible returns or “guaranteed” profits, you might be dealing with a scammer. Often, these scammers will prey on your emotions to get you to bite. “Wouldn’t it be nice to be able to take your wife on that vacation she’s always wanted?” Avoid these people at all costs.

Avoid the Butcher

When it comes to avoiding the pig butchering scheme, you’re best bet is to avoid the butcher completely. Ignore any unsolicited or unwelcome conversations, especially when they involve investments. When it comes to buying cryptocurrencies like Bitcoin, sometimes the simplest way is the best.

Take your cash, head to a Bitcoin Depot BTM, and trade your fiat currency for Bitcoin. If you don’t want to talk to anyone, you don’t have to. It’s quick, convenient, and easy. And best of all, you choose how much you want to buy, with no pressure from us.

In recent years, cryptocurrencies have become increasingly popular, and as a result, the demand for crypto-related services has increased. However, as with any financial service, the use of cryptocurrencies carries with it the risk of illicit activities such as money laundering, terrorism financing, human trafficking, and other forms of financial crimes. 

This is where KYC (Know Your Customer) comes into play. In this blog post, we will explore what KYC is and why it is important in the crypto industry.

What is KYC?

KYC is a process through which businesses verify the identity of their customers. It involves collecting information about the customer and assessing the risk of doing business with them. The purpose of KYC is to prevent financial crimes such as money laundering, fraud, and terrorism financing.

Why is KYC important in the crypto industry?

The decentralized nature of cryptocurrencies makes them an attractive target for criminals. Cryptocurrencies can be used to facilitate illegal activities such as money laundering, drug and human trafficking, and terrorism financing, among others. This is why regulators around the world have implemented KYC requirements for businesses like banks, credit unions, investment firms, insurance companies, and certain e-commerce platforms.

While the origins of KYC can be traced all the way back to the Bank Security Act of 1970 and apply to all financial institutions, it translates well to crypto well. That’s why this implementation is important.

KYC helps to ensure that cryptocurrency transactions are conducted in a transparent and accountable manner. By requiring businesses to verify the identity of their customers, KYC can help to prevent criminal activities, protect consumers, and maintain the integrity of the crypto industry.

What are the KYC requirements in the crypto industry?

KYC requirements vary depending on the jurisdiction and the type of business involved. Generally, crypto businesses are required to collect and verify the following information from their customers:

  1. Full name
  2. Date of birth
  3. Residential address

In order to verify this information, they may ask for documents such as your driver’s license or passport. You may also be required to provide additional documentation for customer due diligence or enhanced due diligence, which could include employment information, source of funds, or account purpose.

In addition to collecting this information, crypto businesses are required to assess the risk of doing business with each customer. This involves conducting a risk assessment based on factors such as the customer's location, transaction history, and the type of cryptocurrency being transacted.

What are the benefits of KYC in the crypto industry?

The benefits of KYC in the crypto industry are numerous. First and foremost, KYC helps to prevent financial crimes such as money laundering, fraud, human trafficking, and terrorism financing. This helps to protect consumers and maintain the integrity of the crypto industry.

Secondly, KYC helps to build trust between businesses and their customers. By verifying the identity of their customers and assessing the risk of doing business with them, crypto businesses can ensure that they are dealing with legitimate customers and avoid the risk of fraudulent activities.

Finally, KYC helps to ensure that crypto businesses comply with regulatory requirements. Many countries have laws that require financial institutions to conduct KYC procedures on their customers. By complying with these laws, exchanges and other platforms can help to avoid fines and other penalties. By implementing KYC processes, crypto businesses can demonstrate to regulators that they are taking steps to prevent financial crimes and comply with relevant regulations.

KYC in Crypto

Here are some additional things to keep in mind about KYC in crypto:

KYC can be time-consuming, but it is important to remember that it is for your protection.  If you’re being asked any of the above questions when purchasing cryptocurrency, it’s likely that the business or platform has some internal KYC controls.

We’re Serious About KYC

If you are new to the cryptocurrency world, it is important to understand the importance of KYC. By providing certain information and verifying your identity, you can help protect yourself and the industry.

Bitcoin Depot takes KYC, AML, and other customer protections seriously, which is why we may ask for certain information depending on the amount of your purchase. We want all our customers to have the best experience possible in compliance with applicable law. So head out, find a Bitcoin Depot BTM, and add some Bitcoin to your wallet today!

Bitcoin mining is an essential part of the Bitcoin network and is used to secure, validate, and verify transactions. Mining involves solving complex mathematical equations in order to create new blocks of data that are added to the blockchain ledger. Miners who successfully solve these equations get rewarded with a set amount of Bitcoin.

However, there's a significant amount of energy that goes into mining Bitcoin, which means mining operations require a lot of capital and resources to stay profitable. As Bitcoin's popularity grows, so does the competition among miners, making it increasingly difficult for miners to turn a profit. The cost of electricity, hardware, software, and labor all add up and can quickly eat away at profits.

Economics of Bitcoin Mining

To get started, let’s take a look at some of the key factors involved in Bitcoin mining.


The profitability of bitcoin mining is highly dependent on a variety of factors, including the cost of electricity, the cost of hardware, and the difficulty in mining new blocks. As competition increases and more miners enter the market, profits can be quickly cut as hash rates increase and block rewards decrease. Additionally, bitcoin prices are volatile, so even if a miner is able to make a profit today, that same profit could turn into a loss tomorrow if the price of bitcoin drops.

Bitcoin mining looks attractive at first glance, but it is important to remember that it requires significant capital and resources to turn a profit. Miners must be aware of current prices, competition, and trends in order to make sure they are staying ahead of the curve. Ultimately, miners who can find the right balance between cost efficiency and profitability will be best positioned for success.

Energy Consumption

Another key factor in the economics of bitcoin mining is energy consumption. As more miners join the network, more electricity is required to power all the machines involved in solving equations and creating new blocks. This has become a growing concern as some countries have begun to implement regulations on energy use for mining operations.

As it stands today, mining bitcoin requires a significant amount of energy, and this will only continue to increase as more miners enter the market. This means that miners must be aware of their electricity costs in order to stay profitable and may need to consider alternative options or sources of power to increase their profit margin.

Hardware Costs

To purchase the hardware necessary for mining Bitcoin, miners can expect to make a hefty upfront investment in the form of specialized ASIC (Application Specific Integrated Circuit) rigs or GPU (graphic processing unit) rigs. The amount they must spend depends on their desired hash rate or the computing power they need to solve the equations.

As the difficulty of mining rises and more miners join the network, specialized hardware becomes increasingly necessary. The total cost of hardware and maintenance can quickly add up, making it difficult for miners to stay afloat. Miners must also keep in mind the depreciation of hardware over time.

Typical Bitcoin Mining Cost

So, what is the typical Bitcoin mining cost? Taking into account all the factors discussed above, miners can expect to pay anywhere from 0.5-5 BTC per terahash of computing power in addition to electricity costs and other associated expenses. However, due to the ever-changing nature of Bitcoin and its volatility, these costs are always subject to change.

In simple terms, that translates to an approximate cost of $2,500 for a terabyte (1,000 gigabytes) of storage space and/or processing power. The Bitcoin you earn in exchange for the cost of mining will also depend on current market values and the difficulty of solving mathematical equations.

Ultimately, it is difficult to predict exactly how much Bitcoin miners can expect to earn since there are so many variables involved. Nevertheless, understanding the economics of Bitcoin mining can help inform decision-making and provide a better overall picture of what goes into mining operations. With the right resources and investments, miners can still make a substantial profit while helping to secure and verify the Bitcoin network.

How Long Does it Take?

The time it takes to successfully mine Bitcoin depends on the miner’s hardware, electricity costs, and other variables. In general, mining a single block can take anywhere between 10 minutes and 1 hour, depending on the network difficulty. The higher the difficulty, the longer it will take to solve each equation.

Miners can also join a pool in order to increase their chances of solving a block. By combining their resources and computing power, miners can reduce the time it takes to solve equations and earn more Bitcoin faster. However, these pooled mining operations usually come with a fee, which means that miners must be sure to factor this into their budget when making decisions.

Is it Worth It?

The answer to this question will depend on your individual goals. If you're looking to generate a steady stream of income, then Bitcoin mining can be an attractive option as long as you are willing to put the necessary time and money into it. 

However, if your goal is simply to add some Bitcoin to your crypto wallet, using a Bitcoin Depot BTM is an easy way to do so. With thousands of locations around the United States, there’s sure to be one near you!

You’ve done your research, and you’re ready to buy Bitcoin from a Bitcoin Depot BTM. However, before you head out, you might want to know how much Bitcoin you can buy. All Bitcoin Depot machines have limits, and we want to tell you all about them so you know exactly what to expect.

What to Know about Bitcoin Depot Limits

One of your first questions might be why Bitcoin Depot BTMs have limits in the first place. There are a few reasons, but some of the most important ones are to provide security and to be compliant with regulations. The good news is that both of these benefit you when you buy Bitcoin from a Bitcoin Depot BTM. 

Bitcoin Depot BTM Limits

There are minimum limits and maximum limits when using a Bitcoin Depot BTM. You have to purchase at least $20 worth of Bitcoin in any transaction, while limited to $15,000 on the high end.

Of course, this begs the question, “why set limits on purchases?” As we mentioned, there are a few reasons to do so. Let’s take a closer look at each one.


Without security, your digital assets are at the mercy of anyone who gains access to your private keys. That’s why Bitcoin Depot takes security seriously, doing our part to prevent nefarious parties from draining your wallet and absconding with your Bitcoin.

When it comes to security, we want to ensure your transactions are safe and private, which is why we use features like two-factor authentication to make sure your Bitcoin is going to the right place.


Bitcoin Depot complies with Anti-Money Laundering requirements and regulations, which is one of the reasons there are limits to how much you can purchase at once. A BTM that’s not compliant is potentially unsafe and dangerous. We want every transaction to be a positive experience, so we’re sure to follow all pertinent laws.


From a practical standpoint, not establishing limits on BTM purchases would make it challenging whenever other users need access to the machine. The reality is that BTMs can store a finite amount of cash. This is why Bitcoin Depot sets limits for purchases. Setting limits keeps the machine up and running, so we don’t have to close it if it’s full.

As you can see, we place limitations on BTM purchases to protect users. We want to provide a safe, secure, and transparent experience for all our customers, which means creating the best possible Bitcoin buying experience.

Do Bitcoin Depot BTMs Take Cash?

You bet we do. Cash is the primary form of payment when using a Bitcoin Depot BTM. A significant advantage to using a BTM is the privacy and anonymity you get. With cash, you’ll experience an untraceable transaction. Of course, all transactions on the blockchain are visible to the public, but the identity of the buyer is protected.

How Much Bitcoin Can I Purchase?

While you can only purchase $15,000 worth of BTC from a Bitcoin Depot BTM every day, you can buy as much Bitcoin as you want. Legally, there is no limit to how much Bitcoin you can own - well unless you own all 21 million Bitcoin available.

Where to Find a Bitcoin Depot BTM

If you want to add some Bitcoin to your wallet and want to use cash, your best bet is to head to a Bitcoin Depot BTM. The good news is we have thousands of BTMs across the United States and Canada, so there’s a good chance there’s a machine not too far from where you live.

All the Bitcoin…within Reason

We want you to have as much Bitcoin as you want, but we also want to provide our customers with a safe and secure buying experience. That’s why we place limits on our machines; we want all customers to have the opportunity to buy Bitcoin anytime they want.

That’s why you should use a Bitcoin Depot BTM. We’re compliant, practical, and safe, which means we’re a BTM you can trust.

If you’ve spent any time in crypto, there’s a good chance you’ve confused coins with tokens. It’s understandable that this might be the case, as the two are often used interchangeably. The truth is tokens and coins are similar on a basic level. Each can be used as a form of payment, and both have value. Plus, users can exchange tokens for coins and coins for tokens.

But what’s the difference between the two? For starters, there are certain tasks that tokens can perform that coins cannot. Along those same lines, there are some platforms that accept coins but won’t take tokens.

Of course, there are other distinctions between the two. Let’s take a closer look at the differences between tokens and coins.

What is a Coin?

It should come as no surprise that Bitcoin has set the bar for what a coin is. However, there are clear characteristics that make a coin a coin. Interestingly, they’re similar to what you might find with real-world currencies. Here are the defining characteristics of blockchain coins:

It has its own blockchain

When you pay someone using Bitcoin, the transaction takes place on the bitcoin blockchain. This is one of the key behaviors of a coin. If someone pays you in Bitcoin, again, the transaction resides on the Bitcoin blockchain. Every time a person sends or receives a specific cryptocurrency if it’s a coin, it takes place on a blockchain that is accessible to anyone on that network.

It behaves like money

Bitcoin was developed by Satoshi Nakamoto (whoever they may be) with the intent of replacing traditional money. The idea was to provide a transparent yet anonymous way to perform digital transactions.

Now, over a decade later, you can use Bitcoin to pay for goods and services around the world. There are retailers from a variety of industries and markets that will gladly accept Bitcoin as a form of payment.

It can be mined

There are many ways to get your hands on some Bitcoin, but two of the most popular methods are to either buy it - which you can do through a Bitcoin Depot BTM - or mine it. Bitcoin is mined by using Proof of Work, which is a system used to create consensus on a block within the blockchain. Unfortunately, it’s become increasingly difficult to mine Bitcoin, which means most people are content buying it.

What is a Token?

While coins have their own blockchain, tokens do not. Instead, they reside on other blockchains, using smart contracts to manage payments or trades between parties. When someone spends a token, it moves from one location to another.

Think of it in the terms of a baseball card. The card represents a token. When you trade the baseball card or sell it, it changes ownership as you give it to the person with whom you’re trading or selling. 

By comparison, coins don’t move. They simply show how balances change. When you send money to someone, the bank simply notes how the numbers on your account changed and keeps the fees for themselves. This is similar to the way Bitcoin behaves. You add or subtract from the total value, and the balance in your wallet reflects that.

A second key difference between coins and tokens is what each represents. Cryptocurrencies are digital representations of money. They are simply numbers on a digital ledger. On the other hand, tokens can represent deeds, tokens, or anything else of value.

While you can purchase tokens using coins, it’s important to remember that there are some tokens out there that are more valuable than the coins you’re using to buy them. Think about it from this perspective: if you buy a share of a company using Bitcoin, it’s possible that the share of that company could increase in value more than Bitcoin increases in value. That doesn’t mean it’s going to happen that way, but the potential exists.

Showing ownership

Stripped down to the basics, a token shows ownership of something you own, whereas a coin gives you the ability to own something. Of course, tokens existed long before cryptocurrency was even a thought. Technically, tokens don’t have much to do with cryptocurrency other than the way they’re used.

As a matter of fact, there’s a good chance you’ve used a token at some point in your life. If you’ve sold a vehicle, you likely signed the title of the vehicle to the new owner. That title is a token of ownership showing who the vehicle belongs to. Off course, you can’t take that same title into Best Buy and purchase a computer with it. You need currency to do that.

Wrapping Up

As you can see, the difference between coins and tokens isn’t huge. However, if that difference is overlooked, it can cause challenges and difficulties for those in the industry. One thing we know for sure is that Bitcoin is a coin. 

It’s one of the most popular coins in the crypto world, and it’s easy to add some to your wallet anytime you want. One quick and easy way to do so is to use a Bitcoin Depot BTM. You can use our BTM locator to find a machine near you and buy Bitcoin. 

Just like a lot of the other crypto scams we’ve discussed before, this one isn’t new. Crypto is just the newest way to do it.

The rug pull scam gets its name from the expression of pulling the rug out. When you pull the rug out from under someone, it means you disrupt the very foundation they’re standing on. You take it away unexpectedly, leaving them with nothing.

This particular scam involves attracting purchasers to a project and then completely canceling the project before it’s complete. Every purchase is worthless, and contributors are left with tokens or coins that are worth nothing.

Rug Pulls: What They Are and Why They Happen

There’s a long history of this type of scam in the finance industry. These days, crypto is a common way of conducting it because of the uncertain regulatory environment associated with buying many different types of crypto. Just like with any form of currency, there are risks.

Some crypto projects use smart contracts, which aren’t necessarily contemplated by current regulations. Instead, they’re monitored by other things like computer software and the blockchain. While this comes with many benefits, like reduced transaction costs, more secure payments, and faster transfers, it’s hard to trace funds or recover them if something doesn’t work out.

Unfortunately, dishonest people take advantage of this setup and use it to promise big returns using fake websites with pretty convincing (albeit fake) white papers. Then, after they get their money, they cut and run.

Types of Rug Pulls

It seems fairly straightforward, but there are actually a few different kinds of rug pulls or exit scams. They’re also called exit scams because developers promise a lot of things and then exit quickly once they have their money.

Liquidity stealing

Ideally, a liquidity pool maintains a balance high enough to reimburse anyone who contributed if they ask for their money back. It should also be high enough to cover any large transactions. But that’s not always the case. In some cases, the developer withdraws a large amount from the liquidity pool or simply drains the entire thing. 

When this happens, the project can’t stay afloat, and people can’t be reimbursed. Most projects will implement safeguards to prevent this, but a few don’t. Not to mention, a savvy developer could potentially build loopholes and vulnerable spots in the code because they intend to steal from the beginning.


The pump and dump rug pull scheme involves inflating a coin’s value. Developers will use social media to hype the coin, garner interest, and falsely inflate its worth. Then they sell off their own supply for way more than it’s worth and run with the money. The unsuspecting purchasers are left with a worthless coin.

How to Spot & Avoid Rug Pulls

There are several ways you can spot and avoid rug pulls and ensure you’re not purchasing anything that will leave you penniless (or coinless).

Be a skeptic

In the crypto space, this is always important. The theories of DeFi are sound, but there are always going to be people who take advantage of others. There’s no guarantee that being a part of any crypto project will be successful. Even the most experienced crypto holders admit they’ve been scammed before.

Just like in TradFi, it’s important to diversify. Don’t put all of your eggs in one basket. At least this way, if you do fall victim to a scam, you’re not out your entire crypto portfolio. Besides, projects can fail for all sorts of reasons, not just because of untrustworthy scammers.

If you assume that any purchase you make may encounter a problem at one time or another, regardless of the reason, you’ll spend your money more wisely and be able to avoid total detriment.

Pick well-established projects

Rug pulls are more common in new projects that haven’t launched yet because they haven’t been scrutinized. For instance, Bitcoin is pretty well-established, it’s been reviewed many times, and it’s used very frequently.

If a project doesn’t have a very long or reliable track record, then there are more likely to be vulnerabilities that haven’t been uncovered yet.

Stick to projects and platforms that have been around for a while, and make sure to use a reliable wallet.

As always, the potential for high reward comes with equally high risk. Don’t give into FOMO.

Examine the code

This one may be tough, but you don’t have to be a computer programmer to attempt to understand a project before diving into it. Check to see if a professional organization has audited the project yet.

Get to know the people

The most volatile element of crypto is the human behind it. Do a background check on the developer or anyone else running the project. Sure, people use pseudonyms, but reputable and experienced developers should have references and websites you can check to verify their credentials.

Stay on Solid Ground

As always, Bitcoin Depot values its customer’s crypto security. Aside from considering the things mentioned above, you can add well-established Bitcoin to your wallet by using a Bitcoin Depot BTM. They’re fast,  simple, and convenient ways to purchase Bitcoin. Find the nearest BTM and enjoy confidently!