Exciting news: Journal Square is getting the first Bitcoin ATM in the state of New Jersey.

What's a Bitcoin? According to Michael Singh, founder of Kointron, the company behind the ATM, Bitcoin is a digital currency currently gaining traction because it's decentralized (no government or institution controls it) and it's anti-inflationary.

Your next question is probably, okay, but why would I need Bitcoins? Singh says that they're safe and a good investment. Many companies now accept payment in Bitcoin, including Microsoft, Dell, and eBay. Because their value goes up over time, he sees Bitcoins as a good investment.

Using the Bitcoin ATM isn't like your typical bank ATM. You'll need to first download an electronic wallet, such as Airbitz, to your phone. That e-wallet will store your Bitcoins. Each wallet has an address associated with it. You'll insert cash into the ATM (it only accepts cash), scan the code from your e-wallet, and get Bitcoins deposited electronically to your account.

The ATM's screen displays the current Bitcoin exchange rate, which will fluctuate often. An 8 to 15 percent service fee is built into the transaction, of which Kointron gets roughly 4 percent. Singh says that Bitcoin users regularly exchange hundreds or thousands of dollars of cash per transaction at other similar machines.

The ATM officially opens Thursday, July 16, and it's located at Smoke Shop Jersey City, at 2822 Kennedy Blvd. The shop is open 9 a.m. to 9 p.m. everyday.

Locating the ATM in a head shop seems an odd choice, but Singh says other companies have had success with similar locations. This is Kointron's first Bitcoin ATM. After this, he plans to open an ATM in Hoboken, then expand to New York and other states.

"We need this for mass adoption," Singh says of the ATM. "We need this to be as safe, efficient, and quick as possible."

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