There are almost 17,000 Bitcoin ATMs worldwide, with the majority of those located in the United States. In the past year alone, the U.S. gained almost 10,000 Bitcoin ATMs.
What are Bitcoins?
According to Investopedia, “Bitcoin is a type of cryptocurrency. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to. All bitcoin transactions are verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin is very popular and has triggered the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins.”
A Bad Rap
When it originated in 2009, Bitcoin had a bad reputation because criminals tended to use it for money laundering and drug trafficking. There were also issues with how to procure Bitcoins.
With the increased popularity of Bitcoin ATMs, that, however, is no longer an issue.
Unsure Markets Increase Bitcoin Investment
With the financial crisis brought upon by the global coronavirus pandemic, more investors are turning to Bitcoin as a way to invest. This is good news for retailers who have installed Bitcoin ATMs in their places of business.
Having a Bitcoin ATM in your business can increase foot traffic into your store. This creates a two-fold opportunity for increasing your bottom line. First, when customers use your Bitcoin ATM, you receive a fee associated with that transaction. Secondly, product sales are likely to rise with an increase of patronage to your store.
Traditionally ATMs can provide ATM fees of around 2-5% depending on the location. Bitcoin ATMs can bring in much higher commission rates. According to Forbes, the Bitcoin ATM industry fee ranges from between 10-15% for operators, and the average volume per ATM can be upwards of $12,000 or more.
With those kinds of numbers, in theory, Bitcoin ATM owners could pay off their purchase investment within 6 months to a year and a half.
Learning More About Adding a Bitcoin ATM to Your Business
If you are considering adding a Bitcoin ATM to your business, you should first do your due diligence. U.Today, a global media organization dedicated to helping people understand new generation technology, has written some helpful guidance about the considerations of adding a Bitcoin ATM to your business.
Bitcoins, sometimes thought of as a flash in the pan, have proven that they have staying power. With people increasingly interested in cryptocurrencies, an increasing number of Bitcoin ATMs in the United States seems inevitable.