Bitcoin ATMs are capable to make the process easier in the mainstream level and unbanked to access crypto but the real question is whether it will affect the hamper adoption.
Bitcoin ATMs are capable to make the process easier in the mainstream level and unbanked to access crypto but the real question is whether it will affect the hamper adoption. Cash is the most important factor when it comes to purchasing Bitcoin (BTC) based on the recent data there has been a sudden uprising in the crypto ATM installations during 2021, showing a 71.3% increase from January 1, 2021, up until the time of reporting. To be exact there are at least 24,00 crypto ATMs in the present placed across the universe at a rate of about 52.3 machines per day.
Growth is an essential part which is taking place right now for the cryptocurrency sector and the main reason behind this action in crypto ATMs might be the demand for using cash to buy Bitcoin. According to Alona Lubovnaya, director of product operations for Bitcoin Depot, said that there are people from different parts of life who are eagerly becoming interested in crypto, especially the underbanked community. “We’ve entered a new era where traditional bank accounts can be replaced with digital wallets, and because of this, more people are choosing to buy crypto with cash.”
There are many arguments to why there are specific people who would like to buy cryptocurrency from an ATM instead of an exchange and majority of cases are trying to deal with cases which are considered as an easy and quick access to crypto. One example could be the one piece of research which says that over 50 million Americans are most probably going to buy cryptocurrency in the upcoming year. The research also states that a shortage of better understanding is the biggest barrier for new investors. Basically, at least 20% of those surveyed says that they still don’t know how to buy cryptocurrency.
Based on the observation of Derek Muhney, director of marketing and strategy at coinsource, and provider of Bitcoin ATMs there are plenty of people trying to get started with crypto value the tactual element of a physical machine such as an ATM. Muhney believes, Bitcoin ATMs are the perfect method to buy bitcoin for the increasing target group of unbanked and underbanked. Even though this fact might be quite known, Muhney continues his point by saying that this has turned into the case of millennials pointing out that these users make up the major share of Bitcoin ATM transaction volumes to date.
Ben Weiss, CEO of CoinFlip a Chicago based Bitcoin ATM operator said Bitcoin ATMs function solely to create crypto absorbable and achievable for the new users who may not understand the smallest details of cryptocurrency or blockchain technology. To further elaborate this point, CoinFlip conducted a twitter poll to find out how many people on crypto twitter have used a Bitcoin ATM. CoinFlip’s survey resulted with 72.2% individuals never using a Bitcoin ATM while on the other hand only 27.8% said they have used. Weiss wasn’t surprised by these results; he says twitter is filled with people who are ardent followers of cryptocurrency and have a deep understanding of technology. Weiss said that mainstream users are the main customers of Bitcoin ATMs. “Using a crypto ATM is the simplest way of purchasing crypto. You don’t have to wait weeks or months for verification and will normally receive your crypto before you get back to your car. People understand ATMs, and crypto ATMs are not too different of a concept.”
Alex Mashinsky, CEO and co-founder of Celsius a centralized cryptocurrency leading platform expressed his view about this saying that there are plenty of customers in the crypto space. For instance, Mahinsky said that hodlers will never sell their crypto, even though others might try to reach the rhythm of the market. Perhaps, the outsiders will be the ones most likely to hold a Bitcoin ATM. “For temp workers and the 25% of those who do not have a bank account, a Bitcoin ATM is cheaper than western Union or a bank wire. This segment will continue to grow and take market share from traditional finance companies that overcharge their clients.”
Muhney says, “more than 100,000 Bitcoin ATMs will be installed by 2025 and that the industry will grow to beyond $1.7 billion.” John Jefferies, chief financial analyst of CipherTrace a cryptocurrency intelligence firm said that on the basis of the recent year, Bitcoin ATMs operating in Canada did not need any form of Know Your Customer, or KYC processes. “None of these Bitcoin ATM required KYC, making these the wild west,” Jefferies said. “KYC is critical for these money service businesses to become a part of the traditional financial system. We are now seeing a lot of Bitcoin ATM vendors (those who make the hardware), along with the operators, focused on compliance.”