Bitcoin ATMs Democratize Bitcoin

Author: GTong

BTMs, or Bitcoin automated teller machines, allow consumers to buy or sell Bitcoin online or in person, following the same process as traditional bank ATMs. This makes it easy for new Bitcoin users to use.

Bitcoin enters new territory

Luca Dordolo, who operates Italy's first bitcoin ATM, sees this as an opportunity to get more people to accept bitcoin.

“Bitcoin ATMs are a great tool to spread Bitcoin to other areas, especially those where almost no one knows and uses Bitcoin. It will be a witness to Bitcoin becoming a global currency.”

According to Dordolo, people want to be able to see and touch valuable items, but this relationship has been lost in the use of Bitcoin. Bitcoin ATMs can help people regain this feeling during transactions, while also giving many new customers a sense of security.

“The fact is that people who use Bitcoin ATMs don’t like buying Bitcoin online. I think they mainly don’t trust online methods and therefore prefer the old fashioned way of using ATMs.”

Bitcoin ATMs have a rich customer base

Dordolo observed that people of all ages and walks of life became customers of the Bitcoin ATMs, from 70-year-olds to ragged workers.

“I think Bitcoin is for enthusiasts and people who specialize in financial operations, not for workers or farmers. But Bitcoin ATMs are different. It has become a popular trend because it is fair to every social class.”

Using Bitcoin ATMs can introduce Bitcoin to many new customers. Bitcoin ATM manufacturer Lamassu has even translated its user interface into Friulian, a language spoken by about 300,000 people in northeastern Italy (in Friuli-Venezia Giulia, Italy).

Advantages of Bitcoin ATMs in Bitcoin Transactions

Dordolo noted that canceling a transaction at a Bitcoin ATM is less cumbersome than the online transaction process.

"...to make an online transaction, you need to enter the BTM on your computer, then scan your QR code or wallet address and enter the record into the computer. However, if you go to a BTM on a public street, it only takes 30 seconds longer."

More convenient

Zach Harvey, co-founder and CEO of Lamassu, points out two major advantages of using Bitcoin ATMs: efficiency and security. He said: "When using a Bitcoin ATM for transactions, the operator (machine owner or service provider) holds the cash for only 4 seconds. This time is used to exchange the bill, verify the bill and send the Bitcoin. Compared with those days of waiting for the funds to arrive, this is significantly faster because the operator of the Bitcoin ATM will never hold the user's funds or encounter the situation of the central server being hacked."

The History of Bitcoin ATMs

In October 2013, Canadian bitcoin exchange Bitcoiniacs partnered with Las Vegas startup Robocoin in Vancouver. According to Radar, a bitcoin ATM manufacturer, there are more than 500 bitcoin ATMs in use. Most are concentrated in North America and Western Europe. “Because the United States and Europe are the countries with the most computers in the world,” Dordolo said.

Representative use

Dordolo said Bitcoin ATMs are not usually located in high-traffic areas such as shopping malls, train stations and airports. "If we talk about general places, I would add bars, cafes, travel agencies or electronics stores."

According to Neal Conner, Lamassu's customer service manager, there are exceptions to this rule.

Non-representational use

“One of the most unexpected locations for Bitcoin ATMs is in fashionable women’s clothing boutiques. While not a stereotypical location for Bitcoin, these locations have proven to be quite popular and are bringing new customers to Bitcoin.”

Challenges

In addition to technological development in specific areas, another major challenge facing the expansion of the Bitcoin ATM market is local government regulation, but Dordolo believes that these restrictions have little impact on Bitcoin in general. "China has restricted the use of Bitcoin since December 2013. But in India, there are some problems between Bitcoin and the government, although these problems are not official."

Development prospects

Dordolo believes that Bitcoin ATMs will adapt to the market and will not disappear as more and more highly educated consumers choose to trade Bitcoin online.

"There will always be people who choose to buy Bitcoin from a Bitcoin ATM, which is much safer than buying from an unknown platform or Bitcoin merchant."

JPM compiled from

Coin Telegraph, BTMs Bring Bitcoin to General Public, by Joel Valenzuela.