Bitcoin ATM Profibility? | Bitcointalksearch.org

Rahar02

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Quote from: btccashacc on August 09, 2017, 06:46:30 PM

Quote from: xuan87 on August 09, 2017, 06:27:00 PM

Many people complaining about the fee that occurred when they do transactions, and to be honest ATM is very good to increase the Bitcoin popularity but not many people want to used it, so I don't think it's very profitable to build a Bitcoin ATM machine

Exactly, the reasons why people using Bitcoin ATM machine are first they curious about it after they realize that the fee is too high they leave it or they don't have an option to buy Bitcoin with their cash or convert their bitcoin to fiat, while in most country there's already exchanger on each country, people can easily trade Bitcoin without going outside and lower fee of course, in my area there are two Bitcoin ATM machines as i can see it's not profitable moreover electricity cost is very expensive here.

To avoid that case, bitcoin ATM owners should apply normal fees such as what people always pay if they withdraw from exchanges.
No need to charge fee for buy bitcoin obviously as most exchanges regulate it that way, so it's convenient for customers.
The problem is whether many people will use this machine or not, and how much it costs to maintain bitcoin ATM per month to pay electricity or-and rent a place.

buharikx31

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I think it's profitable to have ATM because you can regulate the price of your selling coins to people and it's always higher then on web exchanges that's how they make profit with machines

stompix

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Nobody will give you the real statistics
ATM sellers will double the earnings to make you buy them, the ones that have an ATM in your region will cut a 0 to get rid of you as a possible competitor.

You will have to make a spreadsheet with all the money you are going to spend on this, check out how much it will cost you to put it in the most trafficked part of town, don't forget to add what comes next to this (in my country you need a special service and insurance for loading money in and out of those things) and then think how much you;re going to have to transact monthly to cover the fees.

With coins value getting higher and higher and more guys being interested in it it might sound as a nice idea but if you're going to have to work with fees more than 5% a lot of people will turn away and use cheaper solutions. Although you can catch a few newbies buying this first time but in the long run they will also find out. I don't see it a a service that will work in the long time like traditional ATMs.

Ctn

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At the movement bitcoin ATM is very profitable because it is completely new concept. At least for the implementation of ATM has not started with full operations all over the world. Remembered the thing “More demand more costly stuff is”. That makes it more easy for bitcoin ATM to attract more customers at the doorstep. Just imagine having no ATM in other parts will catch the public over to your machine and generating heavy profits. ATM’s charge are very good and you don’t have to advertise for services like this one. Im hoping you will boost your earnings a lot with this.

Razick

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Depends on the prices, as others have said.
You need to find to "sweet spot", so-to-speak, where you make the most profit.
I would recommend starting at 5% markup first and see how it works out.

VanDeinsberg12

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Quote from: LilibethSantos on August 08, 2017, 12:01:56 AM

Honestly, I don't think you will find out how much these ATMs make unless you contact the owners of these ATMs. This shows how much the average fee an ATM charges: https://coinatmradar.com/charts/

Think about the initial investment, security, maintanence, and upkeep. Also consider how many customers that you will actually have. Bitcoin is hot right now, but it still isn't mainstream enough to have a long line at any random ATM. Do you see any buyers/sellers in Middle, Georgia on localbitcoins?

Security can be a big problem for bitcoin atm.
https://themerkle.com/various-bitcoin-atms-destroyed-in-us-localities/

How the atm is easy to be destroyed by the unknown person. Security will always be the main concern thing rather than think about the profitibility.

btccashacc

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Quote from: xuan87 on August 09, 2017, 06:27:00 PM

Many people complaining about the fee that occurred when they do transactions, and to be honest ATM is very good to increase the Bitcoin popularity but not many people want to used it, so I don't think it's very profitable to build a Bitcoin ATM machine

Exactly, the reasons why people using Bitcoin ATM machine are first they curious about it after they realize that the fee is too high they leave it or they don't have an option to buy Bitcoin with their cash or convert their bitcoin to fiat, while in most country there's already exchanger on each country, people can easily trade Bitcoin without going outside and lower fee of course, in my area there are two Bitcoin ATM machines as i can see it's not profitable moreover electricity cost is very expensive here.

xuan87

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Many people complaining about the fee that occurred when they do transactions, and to be honest ATM is very good to increase the Bitcoin popularity but not many people want to used it, so I don't think it's very profitable to build a Bitcoin ATM machine

CyberKuro

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Quote from: tobeyrowe on June 06, 2017, 08:48:35 PM

Hi, I am just trying to figure out how profitable if at all Bitcoin ATM operators are in my state. I live in Georgia, United States and I know there are a good bit of Bitcoin ATMs in the northern part of Georgia and I am interested in possibly buying one and putting it in my part of the state which is Middle, Georgia. But I would like to know how much the ones in the northern Georgia area make first before I decide on whether its worth doing or not. If anyone has any statistics on this or know where I can find the statistics then please comment and let me know. Also I do not know if this section of the forum is the right place for this thread so if it needs to be moved please move it. Thank you and I hope to hear from you all soon.

I don't how is it going in North Georgia and I hope someone in there could tell you, maybe you can find out by yourself, by contacting someone who has bitcoin ATM for at least 6 months or years, so you can figure out how much it costs and how much profit it can make.
Meanwhile, you may check this site https://www.atmmarketplace.com/news/12-months-on-bitcoin-atms-are-making-money/, this is an old article from 2014, but you may have a picture about this business.
Internal Lamassu surveys show that standard cash-to-bitcoin locations are averaging $20,000 in transactions per month, while prime locations are averaging $40,000–$60,000 per month. With an average commission of 5.5 percent, operators are looking at $1,000–$3,000 in gross profit monthly for each of their machines.

TIDOVEE

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to me, it depends on how well people use bitcoin in ones environment, although, it will bring more people to the limelight of bitcoin. and until then, it may not be profitable enough.

CrewKitten

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IT all depends on your rates, of course.

IF the rate is low (under 10% above market rate) then more people will buy.

If your rate is high (over 10%), do not expect to have many customers.

hajimasan

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Quote from: tobeyrowe on June 06, 2017, 08:48:35 PM

Hi, I am just trying to figure out how profitable if at all Bitcoin ATM operators are in my state. I live in Georgia, United States and I know there are a good bit of Bitcoin ATMs in the northern part of Georgia and I am interested in possibly buying one and putting it in my part of the state which is Middle, Georgia. But I would like to know how much the ones in the northern Georgia area make first before I decide on whether its worth doing or not. If anyone has any statistics on this or know where I can find the statistics then please comment and let me know. Also I do not know if this section of the forum is the right place for this thread so if it needs to be moved please move it. Thank you and I hope to hear from you all soon.

In my country no atm matchine existing because most of the people are against the use of thr btc and rest of all who don't know btc Don't want to get in btc and about 1-2% of the population is using bitcoin .
But here you should think that what is the fee of the online bitcoin virtual atm card , ofcourse not High but sufficient to make earner to making money by oer transaction fee .
So here in my opinion for thr Atm machine you should calculate how much a machine can consume maintenance spend money and how much money need to make active all time .
This will surely will give the idea for what will be the fee needed per transaction .
Hopefully it should not be more that 2-3% because if it would be much high than i don't think that it will be useful .

Beerwizzard

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I really doubt about profitability of bitcoin ATM. Sometimes BTC may show 10% change per day so you should controll your fees and reinvest the income asap. Otherwise you may sell 1 BTC and get less USD income than you could get just by holding it. Plus you sill have to pay for machine (leasing seems to be a good potion here).

Nesmo

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Quote from: Kaller on August 08, 2017, 03:33:18 AM

Since no one else is saying it, I will state the obvious.
It all depends on your rates.
I am talking about how much you pay for Bitcoin and selling rate - both.
You obviously need a higher selling rate than buying which should be at least 5% above market price (more like 10-15%).
Wishing you all the best in this endeavour.

- Selling rate mean sell bitcoin for cash, right? I don't think it should be 5% above the market price because first impression is a big thing, so you need to
decrease 'the fees' for 1-2 months before take more profits (increase withdrawal fees). 1%-2% fees for the beginning isn't bad at all.
- Buying rate mean convert cash into bitcoin? You do not need to charge high fees for this one obviously, or no one will consider to buy bitcoin through your
ATM, I prefer 0,5% fees above market rate is convenient.

michellee

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Quote from: SirLancelot on August 08, 2017, 03:59:07 AM

Quote from: DrGuns4Hands on August 07, 2017, 11:26:18 PM

i watch a short video from youtube where bitcoin atm already deployed but still not implemented on the whole world because there's no source of funds for there. and still in my country there's no such thing where bitcoin bank can be found. but i think bitcoin atm will not be continue because bitcoin is a crypto currency so we must use it in adigital form.

Bitcoin ATM are successfully developed in many regions. Bitcoin ATM are much profitable but depends on the number of bitcoin users in the region you are using an Bitcoin ATM. And for the source of funds, the owner of the ATM can add his personal funds to this ATM business. By considering the huge reach of bitcoins, I guess bitcoin ATM business must be a profitable one.

yea but unfortunately there are still few country or city that have bitcoin ATM available so people which want to sell bitcoin or buy bitcoin feeling difficulties to try with their card. but if there are any person that cooperate with some merchant in offline store, then I think bitcoin ATM soon will be in every where.

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Quote from: DrGuns4Hands on August 07, 2017, 11:26:18 PM

i watch a short video from youtube where bitcoin atm already deployed but still not implemented on the whole world because there's no source of funds for there. and still in my country there's no such thing where bitcoin bank can be found. but i think bitcoin atm will not be continue because bitcoin is a crypto currency so we must use it in adigital form.

Bitcoin ATM are successfully developed in many regions. Bitcoin ATM are much profitable but depends on the number of bitcoin users in the region you are using an Bitcoin ATM. And for the source of funds, the owner of the ATM can add his personal funds to this ATM business. By considering the huge reach of bitcoins, I guess bitcoin ATM business must be a profitable one.

slaman29

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I don't think ATMs for Bitcoin are very profitable. You always see the news about new ATM's being installed but you never read about them when they close down. I guess people will try it out if they don't know how to exchange or buy BTC but the fees for ATM are crazy. I guess people who invest in ATM business are willing to hope they become recognised more than anything.

severaldetails

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Honestly I doubt there is much future for a Bitcoin ATM anywhere in the world.
Bitcoin is a currency you use in the internet.
Every smartphone has that these days.
I do not think that you can persuade a sufficient number of people to use an ATM when they can use their smartphone instead.
At least not if you want to make profit.

Kaller

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Since no one else is saying it, I will state the obvious.
It all depends on your rates.
I am talking about how much you pay for Bitcoin and selling rate - both.
You obviously need a higher selling rate than buying which should be at least 5% above market price (more like 10-15%).
Wishing you all the best in this endeavour.

Kakmakr

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We have some Bitcoin ATM's in some of the local bars, but I seldom see people using them. The most important thing with Bitcoin ATM's are location. You will have to place this ATM in a area where there are good foot traffic and lots of merchants accepting Bitcoin.

A single merchant accepting Bitcoin as a payment option and running a Bitcoin ATM, will not generate enough transactions to pay for the expenses needed to operate this machine.

Once SegWit lock-in, we might see a increase in Bitcoin adoption and also more merchants accepting it as a payment option.

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