It is a common trend to see many ancillary businesses developing around a successful industry to support it and to benefit from the boom. This rule also applies to the cryptocurrency industry. Bitcoin and other digital coins have made a big impact in the financial and investment world, especially in the past couple of years. Some of the supporting technologies and businesses that have developed around the industry include trading platforms like https://blockchaineventon.com/, digital wallets, media sites, and influencers.
One of the more unique developments that have taken place in this domain is the emergence of the Bitcoin ATM. Recently, Uruguay has installed its first Bitcoin ATM. So, what are these machines, and what are their benefits? Find out here.
What are Bitcoin ATMs?
Bitcoin ATMs are similar to conventional ATMs in their appearance. However, they are different in terms of their application. While traditional ATMs are meant to allow withdrawal and deposit of cash, these crypto ATMs are designed to enable the purchase and sale of Bitcoin using cash.
The first Bitcoin ATM was unveiled in 2013 in Vancouver, Canada. Most of these ATMs are restricted to allowing only Bitcoin purchases. These outlets feature the following main components:
- A monitor
- A bill acceptor
- A QR scanner
- A dispenser
These systems are designed to make the process simple, quick, and highly secure.
There is another area where Bitcoin ATMs are different. They are not linked to any bank account. On the other hand, they are linked to a crypto exchange through the internet. It is this connected exchange that allows users to purchase and sell digital currency.
Uruguay Installs its First Bitcoin ATM
Uruguay has installed its first Bitcoin ATM in Punta del Este, a popular tourist attraction on its coast. This is the 11th South American nation to encourage the adoption of cryptocurrency. The continent already has 79 BTC ATMs.
The country’s first Bitcoin ATM was developed in partnership with local crypto companies. It is currently limited to supporting the sale and purchase of 5 coins including:
- Binance Coin
- Binance USD
- Ferret Token
According to the stakeholders, the ATM is fully funded by the Uruguay government.
Colombia currently tops the list of nations in South America with the highest number of crypto ATMs. It has 31 installations, while Brazil has 22, and Argentina has 11 such ATMs. Ecuador, Saint Kits and Nevis, Venezuela, and Aruba have one crypto ATM each. There are currently over 50,544 BTC ATMs in the United States.
In 2021, an Uruguayan lawmaker introduced a bill to regulate cryptos in the country and to allow businesses to accept them as payments.
Reasons for Using a Bitcoin ATM
Anyone can use a crypto ATM. However, these machines make more sense to users that meet the following profile:
- Crypto Beginners: The crypto boom of 2021 has attracted retail investors like never before. Bitcoin ATMs provide easier access to crypto to many first-time users. The familiarity of ATMs is attracting more users due to the simplicity associated with the conversion of cash into crypto. Most users can get started with their name, digital wallet, and phone number.
- Greater Privacy: Decentralization and complete privacy are the foundations of most cryptocurrency systems. Still, all of your action is still being recorded online and it can be impossible to maintain 100% privacy. Using BTC ATMs can add an additional layer of privacy to your crypto transactions.
- Quick Access to Crypto: Crypto ATM transactions take place within minutes if not seconds. Your Bitcoin will enter your digital wallet within no time. High price volatility is a characteristic common to cryptocurrencies. These ATMs allow you to get access to coins before the prices change. There is no room for exchanges to shut down due to overload during peak times.
- High Level of Security: Bitcoin ATMs provide a highly secure and safe way of buying and selling Bitcoin and altcoins. You will have complete ownership of the coins in your wallets. All transactions take place directly from your wallet. Besides, based on the transaction size, you may not have to share a lot of personal details beyond your name and phone number.
Bitcoin ATMs are also good options for those without bank accounts. They allow you to purchase and store funds without the need to have a bank account. The facility can also be used to store a lot of cash safely and securely in the form of digital currency.
There are many more reasons for using BTC ATMs. These machines offer quick, simple, fast, and secure transactions. Besides, they are readily accessible.
Interesting Related Article: “How to differentiate Bitcoin, Bitcoin Cash, and Bitcoin Gold?“