As the crypto industry develops, it’s becoming an attractive alternative in many spaces where fiat currencies fall short. One space where cryptocurrency is changing things is among the financially underprivileged population of the world. When people don’t have access to reliable banking or a legitimate currency structure, cryptocurrency becomes an effective solution.
Cryptocurrency works so well because it’s decentralized finance (DeFi) and thus free from governance by banks and governments. Unlike traditional banking institutions which are infamous for freezing accounts when the owners need them most, or downright denying that there is any money available, cryptocurrency puts the power back in your hands.
With cryptocurrency, you don’t have to worry about high transaction costs, transaction limits and the complex paperwork that comes with a traditional bank account. Additionally, international transactions are much faster than wire transfers – this can take a matter of minutes, or even seconds. Thanks to cryptography, information about your transactions and your personal details are kept safe from hackers.
As more and more people adopt cryptocurrency as a standard mode of payment and an investment strategy, cryptocurrency developers are also finding new ways to make the space more accessible. One of the most recent developments in the industry is cryptocurrency ATMs which allow people to transact safely from different parts of the world.
Cryptocurrency ATMs offer numerous benefits to investors. For starters, these ATMs are easy to use, since they function in a similar way to traditional bank ATMs. Anyone who’s conducted transactions on a traditional ATM can use a crypto ATM. You need less paperwork than you would need if you were transacting from a bank account. Likewise, with a crypto ATM, you don’t need to deal with setting up an account or an online wallet. Furthermore, you don’t need to worry about forgetting lengthy public keys. Beyond being easy to use, crypto ATMs also help people to carry out transactions within a few minutes. For a buy order, as soon as you put your money into the ATM, your purchase is completed for the full amount. With a sell order, you no longer have to wait days to receive payment for the sale.
Cryptocurrency ATMs are also becoming more widely available. In fact, by 2019 there were already over 6,000 ATMs across the globe. This means that people who are underserved in the category of digital asset availability now have access to a reliable alternative. Finally, given that you can’t use a crypto ATM without your digital wallet key, you can rest assured that your transactions and personal information will be secure.
Due to the decentralized nature of cryptocurrencies, almost any business can install an ATM on their premises. Many business owners do this to enhance foot traffic or improve their brand image. This is why Bitcoin ATMs are most likely to be found in shopping malls, convenience stores, and coffee shops; places people would want to visit regularly.
While there are many positives to using a crypto ATM, there are situations where it is not necessary or cost-effective. A cryptocurrency ATM prioritizes convenience above everything else. Unfortunately, this comes at a high cost. Bitcoin ATMs, in general, will often charge a transaction fee of 7-20 percent of the total amount. Lower fees are almost unheard of, and there is no actual upper limit. Even though some of this cost goes to the ATM operator, most of it is utilized to offset Bitcoin’s network fees. Unlike online cryptocurrency exchanges, which provide you with a wallet, these ATMs require you to make an on-chain transaction every time you use one. However, when the network is overburdened, costs can increase as everyone strives for the quickest transaction settlement times. Furthermore, at the moment, there is uneven geographical availability for Bitcoin machines. They’re generally concentrated in a few countries because of the economic power and popularity of cryptocurrency in those countries. Moreover, the cost of buying and installing a basic Bitcoin ATM is around $10,000. For this reason, companies that are just starting out may not have the budget to install one.
San Diego-based company, Bitcoin ATM Pros (BAP), has an understanding of the gaps that need to be filled in the crypto ATM sector. With this knowledge, BAP has created a multi-utility token that pays out a quarterly dividend to holders based on 10% of the fees generated by their crypto ATMs. They are attempting to expand their ATM reach worldwide to people who are underserved in the category of digital asset availability. Their ATMs have a buy and sell option thanks to their MSB licensing through FinCEN. A percentage of every investment goes directly into additional ATM placements around the world, thus helping them expand rapidly. Ultimately, BAP is determined to provide the financially underprivileged with easily accessible money transmitting services.
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