What is a Bitcoin ATM?
A Bitcoin ATM (Automated Teller Machine) is a kiosk that is connected to the internet which allows several bitcoin transaction services to its users. Like buying bitcoin, depositing bitcoins in the wallet, and other cryptocurrencies as well.
It is pretty much similar to a normal ATM that allows bank customers to physically withdraw, deposit, or transfer funds In the bank account. The difference is that these ATMs produce blockchain-based transactions that deposit or withdraws bitcoins or other cryptocurrencies from the users wallet. They can deposit bitcoins in their wallet using the cash or debit card according to the current price of bitcoins.
Bitcoin ATMs often utilizes QR codes to send and receive tokens to users’ digital wallets.
Types of Bitcoin ATMs
Generally there are two types of ATMs:
- Unidirectional – One way
- Bidirectional – Two way
Most of the ATMs across the world are Uniderctional, about 70% and only 30% are Bidirectional ATMs. Both types are connected to the Internet, allowing for cash purchase and/or sale of Bitcoin.
These kiosks also look like normal ATMs but instead of connecting to your bank account, they are connected to your online wallet or exchange. On average, transaction fees are 10-20% but in some cases can go high up to 25% or low to even 7% only.
Bitcoin ATMs in India
India’s 1st Bitcoin ATM was set up in 2018 at Kemp Fort Mall in Bangaluru. But just a week after the installation of the ATM, it was seized and co-founder of the company was also held in custody, as the government said that the proper permission was not taken for that.
But some time after that, a Bitcoin ATM has been officially opened in the Capital city of India in New Delhi.
Currently, there is only 1 ATM in India, but recently many crypto exchange companies have emerged in India. So we will see many of these ATMs being opened in India this year across all parts.
Even Bitcoin has taken a hit recently due to recent comments from Tesla CEO Elon Musk. But bitcoin is not showing any chance of disappearing. In fact, bitcoin ATMs are growing dramatically.
As of 12th June 2021, there are 21,142 bitcoin ATMs worldwide, compared to 10,782 on Oct. 2, 2020. And these numbers are expected to increase at a much faster rate in the upcoming months.