Cryptocurrency ATMs are becoming more available and relevant by the day. A visit to CoinATMradar is all it takes to see that points of cryptocurrency purchase are popping up all over the world and are already present in many countries. Chances are, you probably have one in your area. Prior to ATMs, crypto users were limited to a service called LocalBitcoins, a website that brings buyers and sellers together to transact.
Even though the crypto ATMs might look like and operate similarly to the conventional bank devices most people are aware of, there are a few marked differences with bank ATMs. These differences can be best appreciated when looking at CoinFlip, one of the companies in the local bitcoin exchange space.
With approximately 120 crypto ATMs in the U.S., CoinFlip began as an effort to improve on some of the first generation bitcoin points of purchase that were available at the time. As per Daniel Polotsky, CEO of the company, the idea of starting the project started as a way to improve on the experience of existing machines, which were not particularly user-friendly.
At the time of writing, CoinFlip ATMs support the purchase and trading of 6 cryptocurrencies. These are Bitcoin, Litecoin, Ethereum, Dash, Tron, and Komodo. The company’s machines accept wire transfers and card purchases, providing service even to people who do not happen to have one of the CoinFlip’s kiosks nearby.
For those familiar with the cryptocurrency space, the challenges for CoinFlip are similar to those of many crypto projects. By Polotsky’s admission, the biggest hurdles CoinFlip faces at the moment have to do with the uncertainty and ever-changing bitcoin regulatory environment, the cash flow that is necessary to support the endeavour, and maintaining uptime for the company’s ATMs at over 95% of the time.
Running a cryptocurrency ATM venture can be tricky while volatility in the prices of cryptocurrency still remains high. Ample transaction fees need to be charged so as to counteract the wild price fluctuations that often occur in the market. As adoption of cryptocurrency as a means of transaction increases, volatility is expected to subside, but until then, it will be a common occurrence to see even double-digit percentage shifts in prices. This makes running a crypto ATM business a challenge, as liquidity is the lifeblood of any business.
Regulatory clarity is what all projects in the cryptocurrency space are waiting for in the hopes of mass adoption of their ideas. The ATM space is no different. With the legal framework around cryptocurrencies still being ironed out by the relevant organizations, such as the SEC, central banks, and government legislative bodies, uncertainty is still hovering over the space. Having said that, crypto ATMs, can be a profitable venture, considering the cryptocurrency market is in its infancy and prices are expected to boom over the coming years.
Cryptocurrency ATMs are helping thousands of people worldwide find solutions for their need to transact. Millions of people without access or the ability to use banking services will find refuge in cryptocurrencies, and ATMs are one of the tools through which this will be achieved. Crypto ATM companies are looking to play a leading role in this disruptive space.
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