From concerns about security to questions about practical applications, the crypto industry continues to face some skepticism from the general public despite the ascendant prices of bitcoin, ethereum, and other tokens. Neil Bergquist, co-founder and CEO of Coinme, a crypto exchange that specializes in accessible bitcoin ATMs and recently surpassed $1 billion in sales, is on a mission to dispel some of these myths and shed light on the realities of the crypto ecosystem.
Coinme is now in its 10th year of operations and powers a network of over 40,000 locations where customers can buy and sell cryptocurrency using cash. This extensive physical presence puts Bergquist in a unique position to observe how average consumers interact with crypto on a daily basis. In recent interviews, he shared insights that challenge several common assumptions about cryptocurrency adoption, regulation, and utility.
Myth 1: Crypto Is Only for Tech-Savvy Users
One of the most persistent myths about crypto is that it requires significant technical expertise to use. Bergquist argues that this is no longer the case, pointing to Coinme’s user-friendly approach as an example.
“We make it easy and safe so that you don’t need to set up a private key. You don’t need to download a wallet, you don’t need to worry about digging up a landfill because you lost your USB stick in order to access your bitcoin,” he says[1] . “We handle that complexity for you.”
This simplified approach addresses a major barrier to entry for many potential crypto users. Integrating a user’s wallet directly with bitcoin ATMs enables Coinme to create an experience that feels more like a traditional bank deposit or withdrawal.
“When you put cash in the machine to buy bitcoin, we deposit it into your Coinme wallet automatically,” says Bergquist.
Myth 2: Cryptocurrency Lacks Practical Use Cases
Critics often argue that cryptocurrencies have limited real-world applications beyond speculation. Bergquist counters this by highlighting three use cases that Coinme observes among its customers.
First, the company has a segment of customers that use its bitcoin ATMs to facilitate cross-border remittances.
“There’s over $50 billion a year of cash that’s sent from the United States to Latin America, and that’s cash to cash, which is surprising,” says Bergquist. “Well, now you can put that cash into a Coinme location, get crypto, and send that anywhere faster and cheaper than a lot of existing solutions.”
Other Coinme customers use their crypto for direct payments and online payments. Some merchants offer incentives for customers to pay with crypto because it eliminates credit card processing fees. “A merchant can accept crypto and they’re charged 1% or less because there’s no chargeback,” Bergquist explains.
And many users still view crypto, particularly bitcoin, not as a speculative means of day-trading, but as a long-term investment similar to gold, hedging against the risks of inflation that accompany living in fiat currencies like the U.S. dollar. While bitcoin has climbed in value in recent years, inflation has left consumers with a dollar that’s declined in purchasing power.
“What’s the hidden cost of living in dollars? Inflation,” says Bergquist. “Your dollars, your bank account balance, is worth less over time than if you were to live in bitcoin. The banking system is literally not giving you access to a better store of value.”
Myth 3: Cryptocurrency Is Unregulated and Unsafe
A common concern among skeptics is that the crypto industry operates in a regulatory vacuum, making it inherently risky for consumers. Bergquist emphasizes that reputable crypto companies like Coinme operate under strict regulatory oversight.
“Coinme is a licensed and regulated financial institution, just like the other financial institutions you know and trust,” he says. “We do Know Your Customer. There’s no anonymity. We do anti-money laundering, so we have controls and transaction monitoring in place. We do blockchain monitoring.”
This level of compliance extends to transaction screening. “If you’re trying to send crypto to a wallet that’s deemed high risk, it won’t go through,” Bergquist adds. “Regulated exchanges and wallets follow these protocols, which makes crypto safe.”
Myth 4: Cryptocurrency’s Volatility Makes It Unsuitable as a Store of Value
Bitcoin’s price fluctuations are often cited as evidence of its unsuitability as a reliable store of value. Bergquist acknowledges the volatility but argues that a longer-term perspective reveals a different picture.
“If you look back, yes, [the price] goes up and down, but when it goes into a down cycle, into a trough, its low is always higher than its previous low,” he explains. “If you look at the lowest price of bitcoin in any given year, it’s actually higher than the low of the prior year. So, it goes up and down, but overall, it’s been going up.”
Myth 5: Cash Is Dead in the Age of Digital Payments
While digital payments are on the rise, Bergquist notes that cash still plays a significant role in the economy, particularly when it comes to cryptocurrency transactions.
“Cash is 20% of payments in the U.S.,” he states. “A lot of people still use cash, and they use it for several reasons, but one of them is they believe cash is freedom.
“They don’t want their bank to be watching all their transactions and judging everything they do — the Big Brother aspect,” he continues. “Similar to how people don’t want Facebook tracking all their app activity or listening to their conversations. People believe cash is freedom, and they love bitcoin because bitcoin is freedom from the existing financial institutions, corporate America, and Big Brother.”
A common concern for potential crypto users is the perceived difficulty in converting cryptocurrency back into traditional currency. Bergquist points out that Coinme has addressed this issue through its extensive network.
“We’re one of the only places where you can actually liquidate your crypto for cash so that cash can be utilized to buy goods or services,” he explains.
Addressing the ‘Education Problem’
Many of these myths will continue to be challenged by evolving technology, clearer regulations, and increased mainstream adoption. Companies like Coinme are working to bridge the gap between the traditional financial system and the crypto ecosystem, making it easier for average consumers to engage with digital assets.
However, it’s important to note that potential crypto users should always conduct their own research and consider their individual financial situations before investing in or using cryptocurrencies. The industry remains relatively young and it’s important to stay informed for those who use crypto.
As Bergquist puts it, “I think where we’re at in this day and era, it is really an education problem. The more we can educate people on how crypto is solving problems that exist with our current monetary system and financial service providers, the better.”