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Bitcoin gains currency in Vancouver

Co-op, businesses offer Vancouverites chance to trade bitcoin for cash
bitcoin
A woman uses the world’s first bitcoin ATM at Waves coffee shop at 100 - 900 Howe St. The ATM was installed by Vancouver bitcoin exchange Bitcoiniacs and went online on Oct. 29. file photo Jared Gnam

Bitcoin startups are popping up around Vancouver as local bitcoin enthusiasts and traders tap into the growing interest and acceptance of the digital currency.

Bitcoin is a cryptocurrency — a digital, decentralized currency that can be traded over the Internet. While there are plenty of online resources for people to learn about and trade bitcoin, traders in Vancouver are opening offices and forming groups to help make personal exchanges possible.

Euwyn Poon, a former lawyer, founded the startup Coinwaves with a few friends. Coinwaves opened an office in Gastown at the end of November.

“Despite all the online resources it was helpful for people to put an actual location and an actual person to this whole pretty complicated piece of technology,” Poon said.

Poon said Coinwaves operates as a “genius bar” for bitcoin – people can stop by to learn about bitcoin, and can also buy and sell the currency.

The Bitcoin Co-op is another self-started group that consists of a number of traders who met at Vancouver bitcoin meet-up events. They began working together in May and recently submitted their incorporation papers to the province.

Those who want to trade bitcoin can call the Bitcoin Co-op, and will be contacted by one of its members, who are located all around the Lower Mainland, to set up a meeting in a coffee shop or other public space.

The trader will then help the buyer set up an address if they don’t have one and exchange the person’s cash for bitcoins. The Bitcoin Co-op members trade bitcoins that they have previously bought on other exchanges, and take a five per cent commission for completing the in-person trade. “We’re providing a convenience for people who don’t want to learn how to register on the exchange, and send their money to some company … that they’re not familiar with,” said Adam Soltys, a web developer who quit his job to trade bitcoin fulltime.

Poon and Soltys said the bitcoin ATM at the Waves coffee shop at Howe and Smithe Streets has also led to an increased awareness of the virtual currency. The ATM — the first of its kind in the world – went online on Oct. 29.

The ATM was installed by Bitcoiniacs, which opened Vancouver’s first physical bitcoin exchange in Vancouver in June.
Mitchell Demeter, one of the founders of Bitcoiniacs, began trading bitcoin in January without charging any fees. But as demand rose he started a company.

“We realized there was a lot of opportunity and decided to form the business and give people a reputable company to deal with, because meeting people off local bitcoin [localbitcoins.com] or Craigslist … isn’t very comfortable or professional,” Demeter said.

The rising value of bitcoin has also attracted attention. The value of the currency rose from $200 in the beginning of November to an all-time high of just over $1,000 on the Tokyo-based exchange Mt. Gox. It is currently trading around the $800-$900 mark.

“A lot of people heard about bitcoin — maybe a year or two ago, or had some friends mention if off-hand — but now after hearing about it and seeing the price go up it’s created a lot of interest,” said Soltys. “The allure of bitcoin is that anyone can start receiving digital payments for free without going through any sort of application process, or be approved, or pay any money. There is no middle man running the network.”

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