Summary
- Who uses all these bitcoin ATMs?
- Bitcoin ATM Problem
- Other problems
According to coinatmrad is, the number of Bitcoin ATMs increased by about 50% in 2019 and reached 6384. But have you ever met a person who actually uses it, and if so, who and why?
WHO USES ALL OF THESE BITCOIN ATMs?
December 2019 was a significant month for many reasons, perhaps one of the least registered is the record number of new Bitcoin-ATM installations. At 338, it crashed through a previous record high of 294, set in August of this year. These are fairly expensive devices, so it follows that they are deployed to meet user needs.
But where does this demand actually come from (and these users)? This, of course, is not the best offer for most Bitcoin users, and in some jurisdictions they are becoming less and less.
THE PROBLEM WITH BITCOIN-ATM
Honestly, I myself used a Bitcoin ATM, although this was back in 2015. I needed some money quickly, and selling bitcoin seemed like the best solution ... and there was also a small factor in the novelty of using an ATM. The process was quite simple; make a transfer and get a printed QR-code, then come back in half an hour to collect the money.
I could do without having to wait, but that was not a violation of the agreement. This happened when I realized the amount paid.
OTHER PROBLEMS
Due to the high fees, a significant impact on received / paid funds should be another good reason for using a Bitcoin ATM. Could this be the anonymity offered by a simple registration machine?
Well, in some cases, yes, but in the United States, machines are now considered money service businesses, which means they must apply the same anti-money laundering (AML) and know-your-customer (KYC) procedures as exchanges. Whether they all comply with such rules is another matter.
With one-third of the total number of Bitcoin ATMs located in the United States, anonymity is clearly not a factor. The burdensome KYC process is also likely to push away those who might otherwise use the machines just to “try them out,” or because of the same novelty factor that I did.
This leads to the fact that people either desperately need money, or a bundle of money burning a hole in their pocket, and who want to exchange them for bitcoins as soon as possible.
THE REST OF THE WORLD
AML / KYC rules are not so strict around the world, and bitcoin ATMs are used very differently in less affluent countries. According to Bitcoinist, in countries like Venezuela and Argentina, where hyperinflation reduces the cost of cash, the use of bitcoins has increased dramatically. Citizens use bitcoins to protect against inflation. Bitcoin ATMs are becoming an invaluable way of turning them into cash if necessary.
Caracas welcomed its first Bitcoin ATM in January this year, and according to CoinATMRadar, there are now 6 machines in the country ... or perhaps still one, depending on where you look at the site.
Reliable statistics about where Bitcoin ATMs are located (and are still in use) can be another obstacle.
ANOTHER PROBLEM WITH BITKOIN ATMs
On top of that, scammers also use Bitcoin ATMs as an easy way to separate people and their money.
As a result of Australian fraud, a $ 50 fraud was committed after people were asked to pay off a non-existent tax debt through Bitcoin ATMs. The Canadian scammer was even more impudent, simply sticking the “out of order” sign on several Bitcoin ATMs in Winnipeg. The sign explained that users should send their bitcoins using the QR code printed on them.
And yet they continue to spread. If you (or someone you know) regularly use it, please comment below and explain why.
Have you ever used a bitcoin ATM? Let us know in the comments section below.