He pulls $5 out of his wallet and inserts it in the machine tucked in the corner of Launceston’s Volume 2 Bookshop.

A QR code loads up on his smartphone and he scans it into the teller.

Within seconds, the $5 note has been converted into Bitcoin.

At the time of writing, one Bitcoin was worth $313.38AUD, so that leaves Mr Poulton with a few millibitcoins he can now spend at any of 12 businesses in Launceston.

Alternatively, he can get on a plane and spend his digital cash anywhere in the world without conversion costs.

‘‘Well, that’s the dream,’’ Mr Poulton says.

‘‘That you could go anywhere in the world and use Bitcoin.’’

Mr Poulton owns the ATM and heads a group dedicated to making Launceston the world’s largest local Bitcoin economy.

His passion for the currency stems from a lifelong suspicion of the financial system.

‘‘I’ve had reservations about how the dollar works since I was a kid, then when the GFC happened I thought I’d  better learn about why it’s happened – then Bitcoin came about,’’ he says.

Mr Poulton spent the next several months researching the currency and was hooked.

He set his goal on making Bitcoin more accessible to everyday people.

Mr Poulton says the drawcards are obvious – Bitcoin boasts low transaction fees, incredibly fast payments and anonymity.

‘‘There’s fees with banks and that’s the main thing people latch on to,’’ he says.

‘‘People don’t realise inflation steals a bit of their money every year, too – in theory, one Bitcoin now could buy you the same thing down the track.’’

But detractors of Bitcoin are equally as quick to point out the currency’s flaws.

Because Bitcoin is not traceable, neither are thefts, and people have lost thousands of dollars as a result.

As the New York Observer notes: ‘‘Bitcoin, the technology that’s meant to revolutionise the way we think of money, is simultaneously revolutionising the way we get mugged’’.

Just this month a New York firefighter was held up, stabbed and robbed of Bitcoin while on a mission to swap the currency for cash.

The market is also notoriously volatile and susceptible to outside influences.

New York University Stem School of Business Professor David Yermack argues that Bitcoin should not even be counted as a currency, with reasons including Bitcoin’s inability to act as a medium of exchange or a store of value or act as a unit of account.

The Conversation website explains: ‘‘Professor Yermack’s research on Bitcoin volatility found it displayed an average 10 per cent price change per day with an overall volatility of 142 per cent over the course of a year.

‘‘This compared to gold’s price fluctuation of 22 per cent in 2013. Bitcoins’ price difference on a range of different exchanges also posed a problem for people trying to actually value Bitcoin at any given point in time.

‘‘This was something you would never see with US dollars, for example, and contravenes basic economic principles of currency.’’

Mr Poulton is at pains to point out that other currencies experience the same issues and says apps have been created that  lock funds in at the rate they were converted.

‘‘It’s more secure than banks,’’ he said.

‘‘If you’re really new, don’t put thousands of dollars into it – there’s a bit of personal responsibility there.’’

The Launceston City Council is hedging its bets on the city becoming a leader with the digital currency.

‘‘The council is yet to formally consider any involvement with Bitcoin, though we are aware there are   some businesses around Launceston which will accept Bitcoin as a method of payment, and even a Bitcoin ATM,’’ general manager Robert Dobrzynski says.

‘‘We understand Bitcoin has a way to go before it reaches mainstream popularity, but the council is supportive of any initiative which uses innovative ideas to create new ways of doing business in Launceston.

‘‘In view of that, we welcome the enthusiasm of those behind the Bitcoin push in Launceston, but the council is yet to consider any other involvement at this stage.’’

Mr Poulton is optimistic.

He predicts Bitcoin will take off in much the same way as email or social media.

‘‘It’s taking a while because it’s a small market,’’ he says.

‘‘If you catch on too late you’re behind the eight-ball, and that’s a financial loss.’’