Here’s how the BTM works to buy bitcoin: Type in your phone number, get a special code that is entered into the BTM, choose to buy bitcoins (or a portion of a bitcoin), scan your mobile bitcoin wallet on the machine and you’re prompted to insert cash. Then your bitcoin balance is updated on your mobile wallet to reflect the purchase, and now you own a bitcoin — or, perhaps, parts of one.

The price of one bitcoin is always fluctuating because of external factors such as speculation or a failing economy somewhere in the world, but as of this week it hovered around $350.

The process to sell bitcoin via the machine is similar. After the user selects the “Sell Bitcoins” option and the amount, a text message is sent with a code (a process that can take up to 10 minutes) to redeem the money. The user enters the redemption code and gets cash. The BTM dispenses the money, and the user’s wallet is updated with the new bitcoin balance.

The BTM can be valuable for those looking to buy bitcoin on the fly and buy a cupcake. But the real value may be in transferring currency between countries, Alpha Bitcoin’s Weniger said.