Let Bitcoin Be your Personal ATM

Introduction

Letting Bitcoin be Your Personal ATM Everything is evolving in this internet and technology-paced world. Many new inventions have made our lives a lot easier. That too the internet has changed our lifestyle to be more comfortable and worthy. Almost all businesses and services are online, and we rarely need to step out of our house.

Every industry is upgrading rapidly, and we are adapting to it either sooner or later. When all businesses are flourishing with the internet, how about investments? Yes, cryptocurrencies will become a new normal soon. As most of us know, bitcoin is a popular and well-known cryptocurrency. Cryptocurrency is a digital currency that uses a decentralized system to verify and authorize transactions. There is no mediator like banks or any other financial institutions that act as an authority. Thus, everyone can do secure digital transactions without even a bank account.

Now, again the question arises in many of our minds. When we have government-issued fiat currencies, why do we even need to know about cryptocurrencies? Unlike fiat currencies, cryptocurrencies like bitcoins use a private network of computers linked through a shared ledger.

The system uses blockchain technology to record and monitor transactions. Hence it is safe, secure, and faster.

When some new technology or new product launches on the market, many people hesitate to invest. There is nothing wrong with the product or technology. It is because people fear changes. Yes, most of us want to play safe. We tend to wait for other people and relevant experts to try and suggest us. It is all about fearing change and avoiding risk. However, there is nothing wrong with playing safe.

Even we suggest investors think twice before investing in any financial instruments. However, we believe we should not entirely reject an investment without even exploring or learning about it. We hear about bitcoins from random people or a social media article and quickly jump to conclusions. Digital currencies/bitcoins are more than that, and they deserve your time and attention.

Financial experts always suggest not put all of our eggs in a single basket. It is wise to learn about several investments and choose the correct investment that suits our financial goals. In this uncertain and highly volatile market, almost all investments carry risk. The idea is to diversify our investments and minimize risks.

2

Introduction

Letting Bitcoin be Your Personal ATM What if fiat currencies lose their value due to inflation? What if the stock market crashes or real estate loses its value due to a pandemic or other crisis? Many experts feel that bitcoins or digital currencies will continue to grow. With more and more bitcoin ATMs installed in every city, bitcoins are worth considering for your future investments.

Now, let us learn more about bitcoins and their future. The more you know about bitcoins, the better you can use them to your advantage. Let us study and explore every single detail of bitcoin ATMs (BTMs). Let us see how it can impact your investment/life in the future. Read on to know more about BTMs.

What is a Bitocin ATM? A Bitcoin ATM is a digital kiosk that enables customers to buy bitcoins and other cryptocurrencies using their debit card or by depositing cash. You can find these Bitcoin ATMs in various brick and mortar locations like shopping malls, gas stations, etc.

A bitcoin ATM differs from the traditional ATM that allows customers to deposit, withdraw and transfer funds. Though bitcoin kiosks look similar to the regular bank ATMs, they do not link to the bank account.

The users can connect directly to a bitcoin wallet or exchange without any mediators like banks or other financial institutions. Bitcoin ATMs generate blockchain-based transactions that send cryptocurrencies to the digital wallet of the customers. They are internet-based and often use QR codes to validate transactions. Around 14,000 bitcoin ATMs are in operation across the world.

3

How do Bitcoin ATMs Work?

Bitcoin ATMs enable users to buy bitcoins and other cryptocurrencies. In contrast to the word ATM, bitcoin ATMs do not dispense cash. Instead, these digital kiosks connect the customer directly to the bitcoin network. The customers can purchase crypto tokens by depositing cash or using debit cards. In short, bitcoin ATMs eliminate the need for any bank or other financial institutions to handle money transactions.

Users will need to scan the Quick Response (QR) code to buy or sell bitcoins. Upon buying bitcoins, they get transferred to the digital wallet. Users can track the record of the bitcoin in their digital wallets. It takes some time for the digital wallet to reflect your transactions.

However, it will not take more than a few hours, and one can monitor their digital wallet closely.

Most of these bitcoin ATMs have set a lower and upper limit for cash deposits. Bitcoin ATM operators in the United States must register with the Financial Crimes Enforcement Network (FinCEN) and adhere to anti-money laundering provisions of the Bank Secrecy Act (BSA).

Like any online bank transaction, these bitcoin ATMs may also ask for your mobile number to send a text verification code. Else, you may need to scan any government-issued identification like a driver’s license before completing the transaction. Bitcoin Depot, Coin Flip, and Coin Cloud are some popular bitcoin kiosk operators in the United States.

Bitcoin ATMs are straightforward and work in these two simple steps.

Identity Verification

Customers must first verify their identity before accessing the bitcoin ATMs. Identity verification varies depending on the service providers. For instance, Coin Cloud bitcoin machines require mobile numbers. Users would need to enter the verification code sent to their mobile numbers to proceed further with the transaction.

Buying or Selling Decision

Once the user verifies their authentication and logs into the bitcoin ATM, they need to decide whether they want to buy or sell bitcoins.

For buying, the user feeds the cash into the machine. That, in turn, generates a QR code in their cryptocurrency wallet on their mobile device. Users can then scan it to receive the purchased bitcoin.

For Selling, the user sends bitcoin from their digital wallet to the QR code provided by the Bitcoin ATM. In most cases, bitcoin ATMs dispense cash to the user immediately, whereas some may take a little longer time. However, the verification is quicker than most online exchanges.

4

Are Bitcoin ATMs Safe?

Though there are many cryptocurrencies available, bitcoins are familiar across the world. Bitcoin ATMs (BTMs) allows users who do not have access to banks to do online transactions.

Bitcoin ATM differs from the traditional ATM in several ways. BTMs connect the users directly to an exchange, unlike the other ATM that connects you to the bank account.

Also, BTMs are smaller than the traditional ATMs. Often you can find BTMs in slightly hidden spots. Its portable size poses an inconvenience to the clients as it demands the operators to carry them to a display during crypto investment meetings. But, BTMs enable faster and hassle-free crypto transactions.

Some people question the anonymous nature of crypto transactions and the hidden activities behind them. People even worry about getting cryptojacking while buying or selling crypto. Can the whole unit get hacked? It is natural for investors to worry about the safety of cryptocurrencies before investing the lump sum amount in them.

There is no clear-cut answer regarding the safety of BTMs. The motive of the BTMs is to take the cryptocurrency to everyone. Thus, you will find them in busy neighborhoods and crowded spots or stores. Hence, if the crime rate is high in those localities, the BTM users need to pay attention to safety.

5

Bitcoin ATM Locations Around the World Bitcoin ATM locations are rising steadily in recent times. Nearly 9000 bitcoin ATMs are available worldwide. The US stands first with a large number of bitcoin ATMs. Canada and the United Kingdom closely follow the United States with a constantly increasing number of BTMs. Cryptocurrency ATM tracking website Coinatmradar reveals there are nearly 8947 cryptocurrency ATMs and 211,239 non-ATM

locations. They are available across almost 71 countries. The US continues to have the maximum number of bitcoin ATMs (BTMs).

Most of the BTMs are present in bigger cities like Los Angeles, Chicago, Miami, Houston, Dallas, and Atlanta.

After the US, Canada, UK, Austria, Switzerland, Spain, Germany, the Czech Republic, Poland, and Italy have more bitcoin ATM locations.

Source: news.bitcoin.com

Genesis Coin is the company that manufactured the most bitcoin ATMs with almost 3,101 machines. General Bytes is another company that stands second with around 2661 machines.

Coinsource also included 56 bitcoin ATMs recently.

Bitcoin Depot is the leading bitcoin ATM operator with 791 Bitcoin ATMs. Apart from that, Rockitcoin is the second-largest operator with around 436 machines, followed by ATM Coiners, Coincloud, Coin Flip, and Coinsource.

6

Bitcoin ATM Buy and Selling Guide Buying and selling cryptocurrencies from Bitcoin ATMs (BTMs) are much safer and faster than ever. You don’t even need a bank account to access BTMs. Unlike traditional banks or other financial institutions, the verification process takes only a few seconds. Technology has made everything possible.

Most BTMs accept cash or debit cards. Yes, you cannot buy cryptocurrencies with your credit cards. When you sell your cryptocurrencies, the BTMs will convert them into dollars and dispense cash for you.

Guide to Buying Bitcoin So, how to buy cryptocurrencies on a Bitcoin ATM? Let us discuss the step-by-step approach to purchase cryptocurrencies. As most BTMs follow the same generalized procedure, anyone can follow the steps given below: • Locate the Bitcoin ATM nearby and choose the buy option.

• Enter your mobile number.

• Provide the verification code that you received on your mobile.

• Now, start entering the amount of bitcoin you want to buy. Most Bitcoin ATMs provide you an option to choose from preselected buying amounts.

• Then you will need to give the bitcoin wallet address. Thus, you can receive the purchased bitcoins on it. All BTMs have a QR code scanner. You can use your mobile phone and prepare the QR code of your digital wallet address.

• Once you scan your bitcoin wallet address, you will need to insert a cash or debit card to make a payment.

• Click on the Buy Bitcoin option.

• Take a print of the receipt that confirms your purchase.

Now, you have added bitcoins right to your wallet. It is as simple and straightforward as it sounds. However, many feel that fees on Bitcoin ATMs are on the higher side compared to most of the online exchanges.

If you do not have a Bitcoin wallet, you can choose the option on the BTM that says I do not have a bitcoin wallet address. The BTM will then generate a BTM wallet address for you. The wallet address will have the public and private keys to your bitcoin wallet. People often take printouts of their bitcoin wallets and keep them safe for their future transactions.

7

Bitcoin ATM Buy and Selling Guide Guide to Selling Bitcoin While all BTMs allow buying bitcoins, only around 39.6% of BTMs support selling bitcoins. Now, let us see the step-by-step method to sell the bitcoins.

• Find the nearest Bitcoin ATM and select the sell option.

• Give your mobile number on the BTM. • Now, provide the verification code you received on your mobile.

• Now click on the sell bitcoin option.

• Enter the withdrawal amount in denominations of $20, $50, or $100.

• Scan the QR code that flashes on the BTM screen with your mobile wallet app.

• Now, again on your bitcoin wallet, enter the amount you are requesting.

• Send the funds to the QR code you scanned.

• It will take around 10 to 15 minutes to process on the bitcoin network.

• As the transaction is fully processed, you will get a text message alerting you to return to the BTM to withdraw your funds.

• At the BTM, again log in with your mobile number to receive the requested cash.

8

Advantages of Using a Bitcoin ATM Faster Transactions

Convenience

The huge advantage of the Bitcoin ATM is its transactional speed. Yes, traditional online cryptocurrency exchanges take time to verify and complete the transaction.

However, these bitcoin ATMs will bring the needed bitcoin sum to your digital wallet in just a few minutes.

Bitcoin ATMs allow people to turn their bitcoins quickly into cash. Users can walk into the BTMs and scan the QR code of their bitcoin address. They can deposit fiat money and buy bitcoins. Also, they can turn their bitcoins into fiat money and withdraw the cash.

Bitcoin ATM is your best option if you want to change to and from cryptocurrencies.

Most of these Bitcoin ATMs support various cryptocurrencies like bitcoins, litecoins, ethereum, etc.

Ease of Use

Security Safe and secure transactions are part of a bitcoin ATM. Users will need to have a digital wallet to finish their transactions. Also, they can perform transactions only after verifying their identity. So, there is no room for unauthorized transactions.

Most of us are familiar with and comfortable using ATMs for our money transactions.

Bitcoin ATMs (BTMs) are no different from them. It is more streamlined and networked than the traditional ATMs. Thus, they are effortless to use even if you have not used an ATM before.

Disadvantages of Using a Bitcoin ATM High Fees

Unavailability at Your Locality

Bitcoin ATM fees tend to be on the higher side always. It ranges from 5.1% to 15% of the transaction amount. When most traditional ATMs do not charge fees for making deposits or withdrawals, people find BTMs expensive for their transactional charges.

However, the scenario will change in the future. As the BTMs are relatively new, there is not much competition in this industry.

When they gain popularity and people start using them more, the fees will drop. Also, in the case of inflation, when the fiat currency value drops, people will automatically fall towards cryptocurrencies.

Though BTMs are more prevalent nowadays, it is still relatively new technology. Thus, it is unavailable in many localities. People may not find BTMs everywhere. But the technology is expanding further, and the number of BTMs will only continue to grow in the future.

Technical Malfunctions There is minimal customer support for bitcoin ATM services. However, the technology is still booming, and the manufacturers are doing their best to increase the number of BTMs and customer support services.

9

Are Bitcoin ATMs Going to be Our Future?

Bitcoin ATMs are expanding rapidly across the world. Rising at this pace, bitcoin ATMs will soon reach all cities in all countries.

Bitcoin ATMs Across the World Several reliable statistics say that bitcoin ATMs are made available in every city. The US and Canada have more Bitcoin ATMs. Europe is also moving forward with more bitcoin ATMs. Around 99 percent of all these new machines support bitcoin conversions. Also, some BTMs support alternative cryptocurrencies other than bitcoins. Thus, the bitcoin ATM industry is exponentially growing, and there are nearly 58 countries across the world that host bitcoin ATMs.

Exponential Growth Irrespective of Regulatory Difficulties Some European countries have regulatory hindrances that prevent the bitcoin ATM manufacturers from operating in full swing. Even in India, the government has imposed many rules for operating bitcoin ATMs. Once the technology is more prevalent, we can expect some liberalization in the regulations. Thus, buying and exchanging cryptocurrencies will become a much safer and smoother process in the future.

Future of the Bitcoin ATMs The experts predict that the bitcoin industry will continue to grow in the future. Currently, the cryptocurrency exchange does not take place in the banking sector. But, still, the decentralized nature of cryptocurrencies has made them reach people worldwide.

Banks will miss out an immense transactional volume and a large market segment if it fails to adopt cryptocurrencies. Thus, banks will soon start accepting cryptocurrency-based transactions in the future.

Even if we closely monitor, the bitcoin ATM installations are growing exponentially since 2016.

Experts say that it will reach its peak by the year 2023. Also, the advantages of bitcoin ATMs are too good to miss. They come in a handy familiar setup that most people can start using immediately. The authentication procedures are quicker, and one can purchase bitcoins in a shorter time frame.

Analysts also feel that cryptocurrency payment methods can provide solutions to various industries. As more and more companies start accepting bitcoin payments, the cryptocurrency demand will increase for sure.

So, we need to keep patience and observe how the regulations for bitcoin ATMs will change in the years to come. When the rules get easier, the BTMs will become new normal readily available at gas stations, supermarkets, and other important avenues

10

The Future of Bitcoin The future of cryptocurrencies can be interpreted in a variety of ways. The possibility of digital currencies is not as strange as it might appear in this era of credit cards, debit cards, and online bank accounts. Moving money virtually is quick, convenient, and affordable.

Bitcoin, on the other hand, seems to be much too complex and risky for widespread adoption.

There is much demand for a decentralized currency from the average user. For it to work as an established currency, there would inevitably need to be an increase in regulation and customer security which would raise Bitcoin’s transaction costs and reduce anonymity, two of its most appealing factors.

There are also lots of many applications for the use of Bitcoins in the corporate world. Decentralization increases the value of crypto finance and so does the volatility in its price. Bitcoin can be used to bypass capital controls but only to a limited extent. Bitcoins in an investment portfolio increase returns and lower risk but are too risky to act as a core asset – they are useful for diversifying a portfolio. Bitcoin and other cryptocurrency have risen to prominence as a modern asset class with spectacular returns over the last decade.

As a result, apart from investors seeking to diversify their portfolios, customers interested in cryptocurrency, and customers looking to trade anonymously on the market, significant demand for Bitcoin is likely to come from everyone. The rapid growth in Bitcoin’s price reflects a surfeit of demand. Many retailers are willing to embrace Bitcoin, and it will likely become widely used. However, since cryptocurrency’s innovation is so promising, there is plenty of space for development.

Many people want ownership of a vehicle, for example, to be interpreted by Bitcoin and its cryptographic technology. Since it would be online, this innovation can make it possible for customers to maintain ownership of physical properties. Ownership tokens in Bitcoin can well be exchanged or leased out. Yes, this type of “smart property” would transform the blockchain into a register of physical asset ownership. The emergence of cryptocurrency and its cryptography also have a variety of other implications. For example, International banks could use this Bitcoin-like cryptographic scheme to transfer funds or generate their own crypto-currencies.

11

Innovations in Payment Systems Future innovations in Bitcoin payment systems one of the biggest and most widely used innovations in handling currency are debit and credit cards. The reason why these are so popular in the mainstream is due in part because of their ease of use. This innovation eliminates the need to count physical money when shopping, it reduces the weight of your wallet by removing the need for banknotes and coins, increases safety as digital payments are much easier to track and banknotes are practically untraceable. For innovation in currency to be successful and converting fiat money and debit cards, it needs to improve on those assets.

So far, Bitcoin has been popular in this regard because it is safer and more convenient, but it is also more anonymous and has low transaction fees, all of which are desirable qualities among the general public. However, it is very likely that crypto technology will be used in future currency technologies, and that the future of currency will continue to move into the virtual realm such as the use of credit cards for financial transactions. Using only smartphones for transfers can increase the convenience of debit cards by removing the need for a wallet during transfers. It will be just as secure to use as credit cards, and possibly even safer, thanks to crypto technology.

12

Conclusion The Bitcoin ATM market is mooning. Bitcoin was still a relatively unknown phenomenon in 2013 when the first Bitcoin ATM was built in Vancouver, Canada. In today’s world, Bitcoin and Bitcoin ATMs appear to be everywhere.

In October 2019, the BTM was launched. While there are several machines across the globe, this is a tiny proportion as compared to the number of conventional ATMs. However, In time, this number will grow as the benefits of those machines are more widely recognized.

We can conclude that the customer experience with Bitcoin ATMs is still a bit clumsy and slightly more demanding for people who are accustomed to traditional fiat ATMs. You must locate the closest ATMs physical location. It might not be a simple task relying on your existing location. In addition, the fees are quite high.

However, ATMs are a fair part of our daily lifestyle, and increased adoption of Bitcoin ATMs will be crucial for a wider acceptance of cryptocurrencies. As a response, customers may soon realize that Bitcoin could be used as money and a method of payment.

Of course, it is wise to play safe. But it is equally essential to learn about every new technology and investment. Bitcoins are one such investment that is hard to miss.

No, we are not suggesting everyone invest in bitcoins immediately. But take efforts to learn about them.

13