Bitcoin has been become a massive topic in the last few weeks. Investors have noted the increase in Bitcoin’s value, as of now 1 BTC is currently selling for $10,459 USD. The exchange rate is high, making some investors excited but others skeptical.
Bitcoin’s popularity has been rising rapidly. According to a study done by the Cambridge Centre of Alternative Finance, in 2013, it was estimated 300,000 to 1.2 million people used bitcoin. In 2017, that estimation grew to between 2.9 million and 5.8 million people. Its popularity is surging right now, and people are taking advantage of that. One way is through easy accessibility, as a result of installing bitcoin ATMs.
Introducing… Bitcoin ATMs!
With the rise in popularity, accessing bitcoin has become easier, with the ability to buy and sell bitcoins right at an ATM. Currently, there are 1,256 bitcoin ATMs in the United States, according to Coin ATM Radar, but five months ago that number was just 800 bitcoin ATMs. The boost in bitcoin ATMs indicates that people are using these them to buy and sell their bitcoins.
When users purchase bitcoins, they put them into their “wallet,” a term for the place which you store your bitcoins digitally. The wallet is linked with an individual address, which is the code that all your bitcoins are attached to. When you make a transaction with bitcoins, it is recorded in the public ledger known as “the blockchain.”
Who are Bitcoin ATM Users?
These ATMs are placed in spaces that you’d expect any ATM to be: gas stations and convenience stores. Small business owners have been profiting off the industry too. In an article from the Boston Globe, one gas station owner said that he was making $300 a month from his Bitcoin ATM. This is because of the high transaction fees that come from buying and selling this cryptocurrency through an ATM. Transaction fees can sometimes range from 5 percent to 16 percent, meaning a high yield for small businesses.
The people buying bitcoins might surprise you: in the same article, the author states that those who are using cash are their biggest clientele, rather than transactions with credit cards or checks. In our “Future of ATMs” article, we noted that low-income Americans mainly use cash for their bills and purchases. This might mean the largest users of Bitcoin ATMs are low-income Americans.
This also means people will withdraw cash in order to purchase bitcoins. If a business has both a regular ATM and a bitcoin ATM, they’ll be able to reap the benefits of both transactions fees. If you’re interested in buying an ATM from Goldstar, let us know and we’ll contact you with a representative.