Bitcoin and blockchain technology has been around for over a decade. As the years go by, the advancement of digital payments gets stronger. The progress of Bitcoin ATMs and innovative solutions to banking barriers brings us to the question: Are Bitcoin ATMs the future of crypto-based financial transactions?
This informative piece analyzes the growth of Bitcoin ATMs and how they’re changing the game in the financial industry.
What Are Bitcoin ATMs?
Bitcoin ATMs, also known as Bitcoin Teller Machines (BTMs), offer secure and fast access to cryptocurrencies. If you’re wondering what Bitcoin ATMs are, they look exactly like the regular ATMs, but they provide an easy way of converting Bitcoin and, recently, other cryptocurrencies, to cash.
One of the first Bitcoin ATM providers, Cryptobase, has been around for a while and has hundreds of Bitcoin ATM locations scattered across 45 states in the U.S.
Bitcoin ATMs offer a fast and secure way to buy and sell cryptocurrencies using cash. With the rise of fintech companies looking to break all the barriers of traditional banking, Bitcoin ATM providers aim to help millions of banked and unbanked Americans gain easy and secured access to the world of cryptocurrency.
Bitcoin and cryptocurrencies are mainstream and financial institutions are beginning to leverage blockchain technology to create fast and secure digital payment gateways. Thus, there’s a strong transition from the traditional financial models to crypto-based ones.
Bitcoin ATMs and Traditional Banking Barriers
Aside from solving the issues of buying and selling Bitcoin with cash, Bitcoin ATM service providers are looking to solve the barrier issues financial institutions and bank users face.
Current research shows about half of the adults in developing countries and about 2.5 billion people across the globe don’t have a bank account.
A large number of adults without bank accounts have cellphones and can access a digital wallet to buy, sell, and store cryptocurrencies. With a blockchain wallet in place, it’s easier to carry out peer-to-peer transactions using Bitcoin and other cryptocurrencies.
With Bitcoin ATMs, users can convert their cryptocurrencies to cash without banks or intermediaries. Bitcoin ATM service providers aim to eliminate the need for “intermediaries” in the financial sector.
How Do Bitcoin ATMs Work?
Unlike most cash ATMs, Bitcoin ATMs don’t require a credit or debit card. All you need to access your cryptocurrency is your cellphone and the digital wallet of the ATM service provider.
For instance, to use Bitcoin ATMs near me, all you need is the mobile app of the ATM service provider. You can scan a QR code using your cellphone to transfer your information from your phone to the machine.
The app will notify you of the Bitcoin ATM near me to make it easier to locate and use the ATMs. You can convert your cryptocurrencies to cash and even pay for services using a Bitcoin ATM with just your mobile phone.
Bitcoin ATMs and Financial Revolution
The concept of Bitcoin ATMs has gone mainstream and is causing a revolution in the financial industry. Blockchain technology and the entire cryptocurrency ecosystem improve the ease of financial transactions and eliminate the need for traditional banking.
With more financial institutions embracing new Bitcoin ATM models, crypto holders can quickly turn their cryptocurrency into cash. As Bitcoin ATMs gain wide adoption, traditional centralized banks may go extinct as more people manage their finances using their cellphone.
However, it’s worth noting cryptocurrency comes with risks. There are high chances of digital thefts and hacks. The cryptocurrency industry consistently suffers market hacks like traditional banks suffer money heists and holdups. Thus, there is a need to carefully use digital wallets and Bitcoin ATMs.
Benefits of Using Bitcoin Teller Machines
There are so many benefits to using a Bitcoin teller machine. Check out some of the most valuable benefits of using a BTM.
- It’s a fast and secure way of buying and selling Bitcoin.
- It eliminates the need for bank cards and physical cards.
- Some BTMs don’t need Know Your Customer (KYC). Without that identity check requirement, the user can remain anonymous.
- It eliminates the need for traditional banking, as you can buy and sell Bitcoin without a bank account.
- It makes cryptocurrency available in regions with limitations on cryptocurrency trade.
- Increased global BTMs mean easier ways of accessing Bitcoin and cryptocurrency.
Risks Associated With the Bitcoin Teller Machine
While Bitcoin ATMs solve so many financial problems and provide easy access to cryptocurrency, there are limitations to using BTMs. Some of these limitations are:
High Transaction Fees
BTMs charge about 15% to 25% in transaction fees for each transaction.
You may not be able to carry out large transactions using a BTM. There are limits to the number of transactions you can perform using a BTM. These limits range from $1,000-$10,000 for deposits and withdrawals.
With the increase in the rate of Bitcoin adaptation despite fluctuations, BTMs are gaining popularity. According to recent research by Coin ATM Radar, the installation of BTMs in the U.S rose about 177% in 2020. The demand for cashless payment methods in the U.S is increasing.
The world is shifting toward digital solutions. Several fintech, Bitcoin and other cryptocurrencies are fast gaining popularity across the globe. The demand for, and use of, Bitcoin ATMs will continue to rise, because they don’t have many of the drawbacks users face with traditional banks.
However, you must be aware of the risks associated with cryptocurrency. While Bitcoin and blockchain are currently impregnable, other platforms are not hack-proof. There are security risks associated with the use of cryptocurrency. Aside from these risks, Bitcoin ATMs offer solutions to many financial obstacles and are poised to be the future of banking.