Topic: [2016-12-08] Texas Adds 11 Bitcoin ATMs in Two Months as Demand Surges (Read 566 times)
December 14, 2016, 02:53:27 PM
There are many folks in the USA that are sending money south of the border to family members there. These ATM fees are basically in line with MoneyGram, Western Union, etc.... BTC allows for "value" to get moved without encountering opposition from any agencies or borders. I have never researched how difficult it is to convert BTC back into fiat in Mexico. I suspect in some cities its very simple.
December 12, 2016, 07:06:19 PM
Even 7% seems low when you consider the costs in keeping the wallet filled with coins
December 12, 2016, 12:27:25 PM
Demand surges but there are no stats shown when it comes to the actual usage. I personally doubt that demand is really surging as the cost of using a such an ATM is still costly compared to other ways of obtaining Bitcoin. Also add that some ATM's might not experience any usage for several days as the number of Bitcoiners in these states are on the very lower side.
I agree with you regarding the costs. Costs are much higher than buying Bitcoins on the main exchanges. But, it is much easier for non-techie people to buy (first time) Bitcoin on an ATM. So they simply accept the fees.
This! While 7% markup must be considered extremely excessive for an online exchange, 7% are justifiable for an ATM. ATMs come with a much higher cost base than online exchanges. The hardware needs to be developed, manufactured, deployed and serviced. In addition two-way ATMs needs regular supply of physical cash. Since Bitcoin is still not a mass market, the number of users per machine is limited, so a payback of invested capital within a reasonable timeframe is only achievable with relatively high fees. In addition you have to consider that the fee is likely shared between the ATM operator and the owner of the location where the machine is hosted.
What's more interesting than fees is the amount of privacy invasion that comes with using these machines. That may be worth a bit of concern. Ideally you should be at least able to buy a medium amount of Bitcoin without handing over personal data / biometrics.
ya.ya.yo!
December 10, 2016, 10:28:56 PM
Are there less stringent Know Your Customer norms while purchasing bitcoins through ATMs?
It's different per type of Bitcoin ATM and also in what country or state they are located, but when you purchase coins for the first time, you have to go through some sort of verification process. I know there are certain ATMs where you can just verify yourself with your phone number, but there are also ATMs that will ask you to verify yourself with your ID. In the latter case, I would never ever make use of such an ATM. You never know what is happening with your details. Imagine them passing your details to the government.... In the first case, you can just use a prepaid mobile phone number and buy your coins. Not much harm can be done here.A phone number is fine. Even online services ask for phone verification. In some countries, you have to supply comprehensive proofs of identity even for prepaid numbers. If that is not done, then prepaid phone numbers can be used to avoid harm.
From my experience, most people using such ATMs are first time Bitcoin buyers or non-techie persons. For them it is abolutely simply. They put in a bill and get out a coupon with the public and private address holding the countervalue (minus the fees) in Bitcoin. They usually just want to try out the technology or want to save some money in Bitcoin in the hope of a positive price development in the future. They does not care about when they buy Bitcoin worth $100 to pay $7 in fees.
As long as you are buying small quantities, the convenience outweighs the costs. It makes sense for one-off purchases.
December 09, 2016, 02:04:19 PM
From my experience, most people using such ATMs are first time Bitcoin buyers or non-techie persons. For them it is abolutely simply. They put in a bill and get out a coupon with the public and private address holding the countervalue (minus the fees) in Bitcoin. They usually just want to try out the technology or want to save some money in Bitcoin in the hope of a positive price development in the future. They does not care about when they buy Bitcoin worth $100 to pay $7 in fees.
I agree with you regarding the costs. Costs are much higher than buying Bitcoins on the main exchanges. But, it is much easier for non-techie people to buy (first time) Bitcoin on an ATM. So they simply accept the fees.
The article mentions a 7% mark up for purchasing bitcoins through ATMs. That is way too much, even for non-techies.
What are the other advantages? Are there less stringent Know Your Customer norms while purchasing bitcoins through ATMs?
Demand surges but there are no stats shown when it comes to the actual usage. I personally doubt that demand is really surging as the cost of using a such an ATM is still costly compared to other ways of obtaining Bitcoin. Also add that some ATM's might not experience any usage for several days as the number of Bitcoiners in these states are on the very lower side.
I agree with you regarding the costs. Costs are much higher than buying Bitcoins on the main exchanges. But, it is much easier for non-techie people to buy (first time) Bitcoin on an ATM. So they simply accept the fees.
The article mentions a 7% mark up for purchasing bitcoins through ATMs. That is way too much, even for non-techies.
What are the other advantages? Are there less stringent Know Your Customer norms while purchasing bitcoins through ATMs?
December 09, 2016, 04:47:22 AM
Are there less stringent Know Your Customer norms while purchasing bitcoins through ATMs?
It's different per type of Bitcoin ATM and also in what country or state they are located, but when you purchase coins for the first time, you have to go through some sort of verification process. I know there are certain ATMs where you can just verify yourself with your phone number, but there are also ATMs that will ask you to verify yourself with your ID. In the latter case, I would never ever make use of such an ATM. You never know what is happening with your details. Imagine them passing your details to the government.... In the first case, you can just use a prepaid mobile phone number and buy your coins. Not much harm can be done here.
December 08, 2016, 06:40:26 PM
Demand surges but there are no stats shown when it comes to the actual usage. I personally doubt that demand is really surging as the cost of using a such an ATM is still costly compared to other ways of obtaining Bitcoin. Also add that some ATM's might not experience any usage for several days as the number of Bitcoiners in these states are on the very lower side.
I agree with you regarding the costs. Costs are much higher than buying Bitcoins on the main exchanges. But, it is much easier for non-techie people to buy (first time) Bitcoin on an ATM. So they simply accept the fees.
The article mentions a 7% mark up for purchasing bitcoins through ATMs. That is way too much, even for non-techies.
What are the other advantages? Are there less stringent Know Your Customer norms while purchasing bitcoins through ATMs?
December 08, 2016, 02:54:44 PM
Demand surges but there are no stats shown when it comes to the actual usage. I personally doubt that demand is really surging as the cost of using a such an ATM is still costly compared to other ways of obtaining Bitcoin. Also add that some ATM's might not experience any usage for several days as the number of Bitcoiners in these states are on the very lower side.
I agree with you regarding the costs. Costs are much higher than buying Bitcoins on the main exchanges. But, it is much easier for non-techie people to buy (first time) Bitcoin on an ATM. So they simply accept the fees.
December 08, 2016, 02:50:07 PM
Demand surges but there are no stats shown when it comes to the actual usage. I personally doubt that demand is really surging as the cost of using a such an ATM is still costly compared to other ways of obtaining Bitcoin. Also add that some ATM's might not experience any usage for several days as the number of Bitcoiners in these states are on the very lower side.
December 08, 2016, 02:28:11 PM
Texas Adds 11 Bitcoin ATMs in Two Months as Demand Surges
Texas has seen no fewer than 11 Bitcoin ATMs open since October, with distributor Coinsource bringing the state up to par with leaders California and New York. The San Antonio-based company plans to have a total of 70 machines up and running across the US by the end of the year, manufactured by Genesis Coin.
http://bitcoinist.com/texas-11-bitcoin-atms-demand/
Texas has seen no fewer than 11 Bitcoin ATMs open since October, with distributor Coinsource bringing the state up to par with leaders California and New York. The San Antonio-based company plans to have a total of 70 machines up and running across the US by the end of the year, manufactured by Genesis Coin.
http://bitcoinist.com/texas-11-bitcoin-atms-demand/
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