Bitomats are a convenient and easy way to withdraw cash from the world of cryptocurrencies. But not only. Thanks to them, you can also buy Bitcoin for cash. In this way, bitomats bypass the traditional banking system entirely. Therefore, the banks will not receive any commission for the transaction. No wonder they hate these machines.
Based on the latest data, we come to the conclusion that cash is the most important factor when buying Bitcoin. This year, the world saw a sudden, as much as 71.3% increase in the number of bitomats, year on year. From January this year. 24,000 have already been installed, which means that an average number of installations of around 52.3 machines per day!
Growth is the most important part of the cryptocurrency sector. Therefore, the increasing presence of machines in which we can buy Bitcoin is a real response to the market demand. It meets the slogan: “buy crypto for cash.”
Bitomats are a new era in finance
We have entered a new era in which traditional bank accounts can be replaced by digital wallets, says Alon Lubovnay, director of product operations at Bitcoin Depot. – That is why an increasing number of people decide to buy cryptocurrencies for cash. Among them, one should distinguish a group of people who so far had nothing to do with banking systems – adds Lubovnay.
There are many different reasons why people decide to buy cryptocurrencies in a bitomat rather than an exchange office. Most of them are people who want to get things done quickly and easily. This is evidenced by the study, which clearly shows that over 50 million Americans plan to buy cryptocurrencies next year. At the same time, statistically at least 20% of respondents indicate that they do not know how to do it.
There is a large group of people who want to start their adventure with cryptocurrencies through the gateway of bitomats – believes Derek Muhney, director of marketing and sales in coinsurce, who is also a supplier of bitomats. Muhney claims that bitcoins are the perfect solution for buying Bitcoin, which is why a growing group of people unrelated to banks and those who do not have large amounts of money in their accounts. Continuing his speech, Muhney points out that recently an increasing group of millennials generate extremely high transaction volumes in his bitomats.
In turn, Ben Weiss, president of the Chicago bitomat operator CoinFlip, claims that the basic functionality of bitomats is to create opportunities for new users to buy them, even if they do not have the slightest idea about the laws of the crypto world. Developing this thought, CoinFlip conducted a study on the Twitter platform narrowing down users who are already in the cryptocurrency world. Thanks to him, they found out how many people have used bitomats. It turns out that 72.2% of respondents have never used cryptocurrency ATMs.
However, these results did not surprise Weiss. He is convinced that the people who use Twitter are people who are very aware of blockchain technology and the laws that govern it. The vast majority of bitomat users are people called from the street. Using a bitomat is the easiest way to buy cryptocurrencies.
Bitomats without KYC
Remember: when using a bitomat, you don’t have to wait weeks or months for verification (KYC). The funds deposited by you appear in your wallet instantly. You won’t have time to get back into your car and the money is already on your account! People intuitively compare bitomats to traditional ATMs.
Alex Mashinsky, president and co-founder of Celsius, one of the world’s leading centralized cryptocurrency platform, said that “there is still a large group of potential customers in the crypto world,” he felt. For example, Mahinsky stated that the hunters will never sell their crypto funds, even while the others try to accelerate the pace of market development.
- For temporary workers and for 25% of those who do not have a bank account, using a bitomat is much cheaper than using Western Union or bank transfer. This market segment will grow and take some market shares from traditional financial institutions. This is because they charge far too high a commission from their clients – he said. – By 2025, at least 100,000 will be installed. By then, the market will exceed $ 1.7 billion, ”says Alex Mashinsky.
Noteworthy here is the quote from John Jefferies, CipherTrace’s chief financial analyst. – In last year, no bitomats operating in Canada demanded the Know Your Customer procedure, thus creating a true Wild West – he said.
I will add that KYC is extremely important to integrate the current solutions with the existing financial system. We already see that a large number of bitomat vendors (those who create hardware), together with operators, focus on their compatibility.