Bitcoin ATM moves forward to help adopt cryptocurrency | Author: Vincent Tabora | The Capital | June 2021
Users can access cryptocurrency in a variety of ways, such as Bitcoin (BTC)The most common method is through trusted digital exchanges such as Coinbase and Binance. All of this requires the user to have a smart phone with an application installed. Once in possession of the application, users can purchase cryptocurrencies listed on exchanges.
Another way to get into cryptocurrency is to use Bitcoin ATM or BTMIf you use cash, using BTM is a quick and easy way to access Bitcoin and other cryptocurrencies (provided by BTM operators).they can Found all over the world Airports, hotels, commercial centers and other public places. All users need is a cryptocurrency wallet installed on their smartphone or wallet address.
BTM is like ATM. The main difference is that ATM is connected to the bank, and BTM is connected to the bank. Blockchain Through the operator. Although banks have their own withdrawal and deposit rules and policies, the blockchain is an open decentralized database used to record accounting information. Blockchain uses encryption technology to track the balance and protect it, which encrypts data to prevent tampering. The user’s bitcoins are actually stored as value in encrypted and secure databases on many computers that are network participants. The main role of the operator is to provide users with access from the BTM.
Banks have business hours, document requirements, and require user approval to have an ATM account. BTM does not need any of these because the blockchain does not have business hours or submit any documents for use. Although the ATM will go offline occasionally, the BTM will only go offline when there is a problem with the operator. The blockchain will never go offline because it is a network of many computers. If one computer fails, there will always be another computer on the network to provide services.
Users will be familiar with BTM settings. They are information kiosks that can be found in many public places. The user walks to the BTM with their smartphone and interacts with the screen and keyboard or touch screen, and provides instructions to follow. Users need to have their cryptocurrency (in this case Bitcoin) wallet address on their smartphone, which can be scanned by BTM as a QR code. Users can also manually enter their address, but this is more cumbersome, so scanning a QR code is much faster.
If users want to deposit money into their Bitcoin wallet, they will need cash (in their local currency). This is how users can buy BTC. Many BTMs also support other cryptocurrencies that users can purchase (provided the wallet address is provided). Users can also use BTM to withdraw cash from their wallets. Once users scan or enter their wallet address, they can access their cryptocurrency. Then BTM can choose to withdraw cash.
Some BTMs will require user authentication or some form of verification to ensure that you are the owner of the account provided to the BTM. This can be achieved through an SMS text sent to the user’s smartphone as an OTP (one-time password) or a code sent via email. All users need to do is to enter this code to verify their account, and then they can start using BTM.
Bitcoin ATM (BTM) kiosk
As the value of cryptocurrency soars to 1,677,623,229,028 USD (As of June 7, 21) The market capitalization and the number of BTMs have also increased.according to Coin ATM radar, This Number of BTM From 7,756 in May 2020 to 19,452 in May 2021. BTM has grown by 150% in just one year.In the United States alone, there are 16,378 BTMs are running (As of writing). As more and more users enter the larger cryptocurrency market, this trend continues.
BTM can be 71 countries (The latest data at the time of writing). BTM has a total of 41 manufacturers and 596 operators.Manufacturers include companies that build BTM, such as Chain byte, And the operator is the person who provides access to the user. The cost of entering the market is low, and the potential return for operators is high. BTMs are also becoming more common and easy to use, so they are user-friendly and convenient.
In addition to BTC, BTM can also support other cryptocurrencies. These are good signs that the broader support for cryptocurrencies as digital assets is growing. Signs that cryptocurrencies are becoming mainstream include reports that there are now 46 million Americans, or 17% of American adults. Own bitcoin (According to the survey Do not).In total, there are an estimated 73 million users on the Bitcoin network (source Statistician). These figures still represent only a small part of the world’s population, so there is still a lot of room for growth.
Travelers, such as tourists and businessmen, often need to use currency exchanges to exchange currencies. According to many jurisdictions, you must declare the amount you bring with you before entering the country. The problem starts with the customs, which requires users to declare how much cash they have on hand. There are restrictions on visiting foreigners (depending on the country/region).
One problem with carrying bundles of cash is that they may be lost or even confiscated due to certain circumstances (such as violations of customs laws). Of course, the solution to this problem is to withdraw money from a bank that can release your funds. In addition to banks, travelers can also use BTM. Since operators have undergone a compliance review, it is legal to use them. This brings a convenience, allowing cash to be withdrawn in local currency.
During this period Bitcoin Miami 2021 At the meeting, Fred Thiel (CEO of Marathon Digital Holdings) mentioned that BTM is a way to help users send money back to their home countries. This is because cryptocurrency knows no borders. It allows users working abroad to send money back to their home country in the form of cryptocurrency, with less friction (lower fees and shorter time). Then, the recipient of the cryptocurrency can exchange it for fiat currency through BTM. Through bank or wire transfer, the fee may be higher, and the time to receive the money may also be longer.
For any user, it may actually be better to use BTM instead of exchange. You have full ownership of your digital assets, which is different from an exchange where your BTC is kept by an exchange. BTM does not hold your BTC, it just provides access to the cryptocurrency on the blockchain. When the exchange goes bankrupt or encounters a hacker attack, it will also affect users’ funds. Since their BTC is not placed under the supervision of the exchange, users do not have to worry about losing their funds. They are only responsible for holding it (e.g. taxation of cryptocurrency, keeping the wallet safe).
During busy periods of trading, the exchange often suffers from interruptions or congestion. When many users try to buy or withdraw fiat currencies on dips after reaching the peak, the system may get into trouble due to many requests that cannot be processed at the same time.This happened on Coinbase Some occasions, The problem is related to many users trying to access the exchange at the same time. BTM allows users to directly access their BTC because there is no other party to deal with. BTM bypasses the exchange so that users can access their BTC on the blockchain directly from their wallet.
BTM is also the best way to convert cryptocurrency into fiat currency or cash, and vice versa. Exchanges and banks do not provide cryptocurrency exchange services. For example, if you want to use an exchange to convert cryptocurrency into U.S. dollars (USD), you must go to an ATM or local bank to withdraw cash. BTM is a one-stop shop for converting cryptocurrency into fiat currency and withdrawing money. Similarly, users can purchase cryptocurrency with cash on BTM. At the exchange, you need to connect your bank account or electronic payment method to your account before you can perform this operation.
Before you can use the exchange, you need to follow their policies.According to the requirements of regulatory agencies, users must submit their KYC (Know Your Customer) File to the exchange to comply with financial laws. KYC information includes PII (Personal Identifiable Information) About a user. This type of information includes any government-issued ID (such as a driver’s license, tax ID) or passport.This can be used during investigations by regulatory agencies, for example SEC (Securities and Exchange Commission) In a U.S. jurisdiction.This is used to review users when they are involved AML (Anti-Money Laundering) with ATF (Anti-Terrorism Fund) policy.
This is to ensure that users will not use their funds to participate in any criminal or illegal activities. This allows regulators to track users to prevent financial crimes and ensure that their funds are not laundered. If users are under investigation, this allows regulators to request information from the exchange to review their transactions. This is also how regulation works with traditional financial systems, so cryptocurrencies are not subject to legal restrictions.
Although this is the law, unfortunately, real documents may make it difficult or impossible for many people to buy cryptocurrency. This is because some people do not have the appropriate documents, especially in developing countries. This may be due to many reasons, from social status to political persecution. The lack of documentation is a disadvantage for many people. For this reason, they also cannot access bank accounts and have fewer opportunities to obtain financial services. Even basic savings or checking account banking services are not available, which means that their only financing method is through cash or legal tender.
This is where BTM appears. People who do not have a bank account and are financially excluded can access encryption-based financial services through their smartphones by installing an encrypted wallet. BTM operators are responsible for handling the legal issues involved in cryptocurrency, so the only responsibility of users is to handle their cryptocurrency. BTM provides a gateway for these services, allowing them to access Bitcoin to invest or receive payments. Users do not need a bank, and can purchase cryptocurrency with only cash. They can also use BTM to withdraw cash from their cryptocurrency for spending purposes. It is now important to raise the awareness of these types of users so that they can benefit from BTM.
BTM is a quick way to access digital assets such as Bitcoin. It also provides a gateway to a more inclusive financial system for those without a bank account. Due to its availability, the use of BTM can help accelerate the further adoption of cryptocurrencies. Their growth is in line with the increase in demand for cryptocurrencies.
The important thing here is to introduce the user to the BTM and its available locations. This can provide opportunities for new financial services that allow users to access digital assets. If users don’t know their existence, it can help financial inclusion is not important. The good news is that the number of BTMs is growing. In this case, the growth of BTM in operations will become an important part of the further adoption of cryptocurrencies.