What is Bitcoin ATM – A Complete Guide
Cryptocurrencies are more and more accepted around the world and their popularity with investors is increasing dramatically day by day. According to a report recently released by Business intern, the total number of cryptocurrency users has already passed the 100 million mark worldwide.
Bitcoin, the most used cryptocurrency worldwide, has an estimated user base of around 20.5 million people. In addition, around 5% of the total population of Europe uses Bitcoin for investing, shopping, and various other purposes.
This growing digital trend is driving various interesting developments in the real world as well. The installation of Bitcoin ATMs is one such recent innovation that encourages cryptocurrency trading and makes the process of exchanging bitcoin more convenient for its users.
What is a Bitcoin ATM?
The term “ATM” is a bit abusive. ATMs are not actually ATMs and do not connect to a financial institution or dispense cash. Rather, they are kiosks that connect to the Bitcoin network and allow customers to purchase crypto tokens with deposited money.
A cryptocurrency ATM includes a monitor, QR scanner, and receipt printer. Besides the convenience of cryptocurrency users, another major goal of these ATMs is to increase familiarity and mass engagement with cryptocurrency and increase the number of transactions.
While a regular ATM is typically operated by a financial institution and allows you to log into your bank account to withdraw or deposit money, or perform other types of transactions, cryptocurrency ATMs do work. in connection with an Internet cryptocurrency exchange portal. It is this portal that manages the transaction through the ATM, without the intervention of banks or other financial institutions.
While many ATMs allow users to invest in multiple cryptocurrencies, some are limited to the Bitcoin exchange. In 2013, the world’s first Bitcoin ATM was installed at the Waves Coffee Shop, located in the city of Vancouver, Canada. According to Coin ATM Radar, in 2021 there were more than 17,000 cryptocurrency kiosks in the United States alone.
How to use a Bitcoin ATM
The process of buying and selling bitcoin or other cryptocurrency through a Bitcoin ATM is very simple and somewhat similar to how you use a normal bank ATM. However, people are often confused due to the different user verification methods adopted in these machines. Here is a step-by-step guide to using bitcoin or other cryptocurrency, ATM:
When you reach the ATM for the first time, you need to verify your identity. This process is done in different ways depending on the ATM you are using. Usually you are either prompted to enter your cell phone number and OTP (One Time Password), however, other types of verification methods are also used, such as palm scan.
Choose to sell or buy Bitcoin
Once your identity is confirmed, you make a selection to buy or sell bitcoin. If you want to buy, insert a cash amount into the machine and when your money is accepted, open the cryptocurrency wallet in your smartphone. A QR code is generated which is then scanned in order to finalize the transaction.
To sell bitcoins and receive money in exchange, you need to scan the QR code on the ATM monitor and send bitcoins from your wallet to the same. Most of the time this process is quick and the money is dispensed instantly from the machine, but some bitcoin ATMs will take a few minutes to process the exchange before you can get the money back.
Why Bitcoin ATMs Are Getting Popular
While exchanging cryptocurrency online, users face various issues related to privacy, support, transaction time, and security. One problem is that online bitcoin transactions can take days to verify and confirm, and investors are sometimes concerned that their exchange will be tracked by anonymous third parties.
On the other hand, transactions made with Bitcoin ATMs are usually instant. Customers do not need to share banking or personal information. Transactions are made through personal cryptocurrency wallets which are considered a safer option, and all transactions remain completely anonymous.
In addition, the strong customer support provided by many bitcoin vending machine manufacturers plays a key role in increasing the popularity of these machines among users. For example, there are now dedicated apps to help users find the location of their nearby Bitcoin ATM.
Since the use and manufacture of such machines is still a new business model, there are many new and existing players who go to great lengths to build trust among cryptocurrency users by providing good support and service.
As of February 2021, there were approximately 20,000 Bitcoin ATMs installed around the world, and the numbers are said to be growing rapidly, especially in the United States and Europe. However, there are also countries such as China, Bolivia, Saudi Arabia, Qatar, and Vietnam, where governments have banned cryptocurrencies or banned the use of bitcoin ATMs due to the possibility illegal transactions.
The future of Bitcoin
Since its inception, Bitcoin has experienced a dramatic change in price. In 2013, a bitcoin was valued at around $ 200. Right now it’s equivalent to $ 35,000, but the price can fluctuate dramatically. In April 2021, bitcoin peaked at $ 64,000 before starting to drop. In May of this year, China started cracking down on Bitcoin mining and trading, which affected its price.
At present this digital currency has become much like gold and oil, speculators are drawn to the uncertainty factor of its price and this has led to increased speculation. The popularity and user base is growing, as is its influence on the real world.
Since Bitcoin is an independent online currency, there is no particular regulatory body known to control the flow of bitcoin around the world. Thus, many leaders, economists and thinkers have cast doubts on the control and credibility of Bitcoin. There are also concerns about its increasing use as the currency of choice for crime and money laundering.
Perhaps most worrying for Bitcoin, the extremely high energy needs of mining are starting to weigh on the value of currencies. Environmental groups, and even Tesla, are now refusing to accept Bitcoin, due to concerns about its impact on climate change. Bitcoin mining would consume as much electricity as a mid-sized European country. And while Bitcoin mining can, of course, be done using clean, renewable energy sources, in many places Bitcoin is mined with energy from fossil fuels.
However, people who defend cryptocurrencies firmly believe that as long as Bitcoin exists as an independent currency, their investments are safe, private, and cannot be manipulated by external bodies such as governments and banks. Therefore, they are totally against the idea of â€‹â€‹public or private intervention in the Bitcoin exchange process.
However, all of these conflicts, confusions and controversies could also work in Bitcoin’s favor, because despite the many risks involved, people continue to show interest in its trade and despite the short-term setbacks, the Bitcoin economy continues to thrive. .