3 Things you Didn’t Know About Bitcoin ATMs
Bitcoin ATMs have been around for seven years now. The first one was installed in Canada, at a Waves coffee shop in downtown Vancouver, BC, on October 29, 2013.
Since that first BTM we have seen over 11,000 machines installed worldwide, and more than 9,000 in the USA alone.
The industry shows no sign of slowing down, because Bitcoin ATMs provide the only way to quickly and easily trade cash for crypto (and/or crypto for cash) without the need for a bank account or debit card — and even without having to deal with another person.
But while you may know a lot about Bitcoin ATMs already, chances are these little-known facts are new to you.
Here are 3 things you didn’t know about Bitcoin ATMs:
1. Not all Bitcoin ATMs are the same.
Bitcoin ATMs come in a few different configurations. The most basic (and most common) allow you to buy bitcoin with cash, and that’s it. The most advanced let you buy and sell a variety of digital currencies.
Here are the 5 main types you might come across, in order from basic to advanced:
- Buy bitcoin with cash
- Buy bitcoin and some altcoins with cash
- Buy and sell bitcoin with cash
- Buy and sell bitcoin and some altcoins with cash
- Buy and sell bitcoin and many altcoins with cash
Only Coin Cloud has 100% of the 5th variant machines, allowing you to buy and sell bitcoin plus 30 altcoins with cash at any of our 1,000+ BTMs.
2. 80% of Bitcoin ATMs don’t let you withdraw cash.
It’s a bit surprising, because we expect to get cash from any ATM-type of machine. But only 20% of Bitcoin ATMs in the USA allow you to cash out. 80% just let you buy. Most brands have a few two-way machines, and the rest are buy-only.
However, if you choose to use Coin Cloud Bitcoin ATMs, you never have to guess what capabilities each machine has, because 100% of Coin Cloud BTMs are two-way. They let you buy AND sell bitcoin, AND 30 altcoins. All with cash. Coin Cloud machines provide the most options by far, while still being the simplest to use.
3. Bitcoin ATMs provide needed financial services to the unbanked.
While it may seem like Bitcoin ATMs are just fun and convenient machines, similar to vending machines that you use once in a blue moon when you want a quick snack, the truth is that BTMs fill a huge void in the lives of many.
Believe it or not, over 6% of US households are unbanked with an additional 16% underbanked, according to 2019 surveys by the FDIC and the Federal Reserve. Because the research was done prior to the COVID-19 pandemic, the FDIC points out that “one effect of these conditions is likely to be an increase in the unbanked rate from its level just before the pandemic.” The previous survey, taken in 2017, showed 25% of US households being unbanked or underbanked.
So, if you don’t have a bank account or debit card, how do you participate in the digital economy? How do you buy things online or pay for items remotely?
One way is to use digital currency. Another is to pay with a mobile wallet. And the fastest and easiest way to do both those things is to buy bitcoin (or other virtual currencies) with cash. You can then get bitcoin-friendly gift cards to almost any store, HODL your funds as bitcoin in the hopes the value goes up, and withdraw your money in USD whenever you want. Coin Cloud machines let you do all of this.
Disclaimer: The information and views supplied by Coin Cloud are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
What is Coin Cloud?
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the world’s leading digital currency machine (DCM) company. With over 1,600 locations nationwide, in 47 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell 30+ virtual currency options with cash. You can find your nearest Coin Cloud DCM here.