Blockchain has played a very important role in the inception of bitcoin and other cryptocurrencies. Blockchain even transformed the traditional financial industry, as around 15% of banks started using it in 2017.
Blockchain has also created an unexpected bridge between the cryptocurrency market and traditional financial providers. It has made it possible to start accessing bitcoins the same way people would access regular fiat currencies.
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One of the benefits of new advances in blockchain has been with the development of bitcoin ATMs. Introduced in 2013, Bitcoin Teller Machines (BTMs) are getting increasingly adopted, and the amount of their physical placements is expected to increase dramatically in the near future. Also called Bitcoin ATMs, BTMs resemble the standard bank ATM. Still, are Bitcoin ATMs reliable and worthwhile for acquiring cryptocurrency?
Generally, Bitcoin ATMs from reliable providers like Pay Depot are fast and reliable to use. But there are several factors to consider when opting to use a Bitcoin ATM. Here, we’ll look closely with an impartial view at Bitcoin machines enabling cryptocurrency purchase and sale, as well as their benefits and drawbacks.
The Pros of Using BTMs
Blockchain has improved access to cryptocurrencies. Below are the primary advantages of using a Bitcoin ATM to sell or buy digital money.
Speed
In today’s fast-paced and technologically advanced world, speed attracts users and when discussing Bitcoin ATMs, the aspect of their quick transactions is one of the key points to be mentioned. Online cryptocurrencies may take some time in the transaction’s verification and completion processes.
On the contrary, operating with a Bitcoin ATM will take mere minutes. Within minutes, the cryptocurrency will be deposited in your digital wallet. If you’re short on time and want to switch between cryptocurrencies quickly, then a Bitcoin ATM is your best choice. It is one of the best ways to access cryptocurrencies through blockchain.
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Availability
It is now simpler than before to locate a Bitcoin ATM close to you. The rate of new physical placements has also increased, indicating that the process is speeding up, led by the United States of America, followed by Canada and Austria. The amount of BTMs is anticipated to increase even further, providing customers with a wide range of options and a great deal of availability.
Accessibility
Bitcoin ATMs offer customers a welcome opportunity to deal with the snags that come with internet trades. BTMs are strategically positioned around the city to make it as easy as possible for clients. For instance, places with common and regular public visits, such as grocery stores, bars, cafes, etc., are chosen as the physical centers for Bitcoin ATMs.
Comfort
Several consumers are hesitant to explore cryptocurrencies since they are concerned about using a cryptocurrency exchange. People who do not regard themselves to be very tech-savvy may stumble with some processes and verification stages. Due to similar functionality to regular ATMs and ease of use, consumers find it easier interacting with a Bitcoin ATM for an investment market as unpredictable as BTC.
Security
BTMs, unlike online exchanges, allow customers to purchase and sell BTC with fiat money. This in itself is easier, and it also eliminates the need for customers to attach their confidential bank details, ensuring that private data is protected. Somebody who doesn’t have your digital wallet key will be unable to access your cryptocurrencies or carry out an illegal transfer.
Furthermore, the unbanked population can have access to digital money and buy and sell it. You’ll need a digital wallet to make the payment, and you could be required to confirm your identity. Therefore, using a BTM is risk-free, and your digital wallet is also completely safe.
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The Cons of Using BTMs
Since this fintech solution is new and evolving, there are some main disadvantages you should have a look at:
Fees for Transactions
Operators of Bitcoin ATMs need to create profit, and they do so by collecting processing charges on the transactions conducted. You can locate a few BTMs near your house and have a look at their work. Operators give information on operational costs, allowing you to choose the most cost-effective option available.
Also Availability
There is a possibility that the service is not available near your house. Though there is an increase in the physical installment of Bitcoin machines, certain places still lack them. So, if your city or country does not have Bitcoin ATMs, you might not access its functionalities.
Problems in the Machine
You might face technical issues since the Bitcoin ATM will be installed in a physical center. This situation is similar to when we go to a bank’s ATM and see a message that says that the ATM is broken or not working. All of us have gone through these situations. Bitcoin ATMs may have similar technical difficulties.
The financial technology is still in its early stages, and manufacturers would be required to make remote ATM repairs and restart viable. This is one way to tackle this issue. Still, till that moment arrives, there is always the possibility that an ATM will be out of service when you need to acquire bitcoins.
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Blockchain Makes Bitcoin ATMs Feasible
There is no doubt that Bitcoin ATMs use blockchain to offer speed, reliability, and security. On the other hand, there are fees for transactions to be considered. Bitcoin ATMs will be witnessing a significant increase in the upcoming years. If the fees do not bother you, this type of fintech service is undeniably a quick and efficient option for purchasing and selling bitcoins.