An automatic cash machine that trades cash money for Bitcoin was first placed in Vancouver coffee shop just last week. It has generated lots of buzz and now after more than a week we actually have some numbers telling - how many Bitcoin users truly used it.
This ATM was made by Robocoin which said that in eight days the cash machine proceeded over $100,000 and gathered 348 transactions. Robocoin chief operating officer Jordan Kelley mentioned that 70% of people that used ATM also created Bitcoin wallets which could mean they were first-time users.
Kelley added that there was an amazing mix of both old and new Bitcoin users. He put in that ATM was also used by Bitcoin miners and one 80-year-old woman.
Kelley aforesaid that every Robocoin ATM cost about $15,000. He added up that new ATMs for sure will appear in many different cities by the end of December. We could add there are plans to install ATMs in Berlin and London and such American and Asian cities as Toronto, Hong Kong and New York.
It is still early to mention if Kelley’s expectations would come true, however the buzz over cash machine in Vancouver really shows how much popular the Bitcoin has became only within the last year. It is not just a new level commerce, but it is obtaining a serious respect from venture capitalists and also the tech institution.
However the increase of Bitcoin does not mean the increase of Bitcoin ATM number. I still have doubts regarding the business model. It works this way: corporations like Robocoin will sell the ATMs to payment processor, they install machines but Robocoin will still receive 3-5 percent of each deal.
We are not sure if you understood the last part, so will explain. Three to five percent fee is higher than a fee of normal ATM. Many users will choose to make a transaction on-line which takes only a 1% fee.
As a reminder, the charm of Bitcoin, in comparison with traditional banking, is in its convenience, cost reduction and (though relative, but) privacy. A Bitcoin cash machine cannot provide any of those things, mainly because the Robocoin ATM needs a biometrical handprint for compliance with white-washing rules. However the handprint apparently will not be shared with the government. In the meantime, can a Bitcoin payment processor operator expect to recompense their investment once processors should depend of ATM maker’s software?
Kelley convinced that individual will surely crowd around ATM machines as it is a faster way to start using Bitcoin than signing up to such services as Coinbase. As we know it takes days to link an on-line banking account to Coinbase account. He also mentioned that at present rates the owners of the Vancouver Bitcoin ATM can commit their expenses in less than a year.
Time will show. I will appear in Vancouver in late December and inform you whether or not North America’s first Bitcoin cash machine remains buzzing.
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