Cryptocurrency Unattended: How the Public Meets Bitcoin
Bitcoin’s price has surged during the second quarter of 2019, almost quadrupling its value from the beginning of the year. Once again, it has spurred serious debates amongst buyers and investors about the future of bitcoin.
Despite numerous theories about cryptocurrencies replacing physical cash and its mainstream acceptance, many people still hesitate to use bitcoins for their daily transactions. Those reluctant to enter the crypto world often feel it is a complex process.
Governments in countries across America, Asia, and Europe, have recognized bitcoin as a legal form of payment. However, analysts say that bitcoin has a long way to go to achieve mass adoption. The primary problem is that many people find the process of trading bitcoins too hectic and complicated. Typically, consumers buy and sell bitcoins through digital asset exchange companies, which requires users to sign up for an account and create their own “digital wallet.” Only after setting up an account, can users transfer money between their digital wallet and bank account. If you are new to crypto currencies, this process tends to take several days. This may be disturbing to hesitant buyers as bitcoin’s price skyrockets. Clearly, such procedures are too complex and time consuming for customers to choose Bitcoin for their daily transactions.
To improve access to bitcoins, many companies developed an independent kiosk unit enabling people to easily and instantly trade their cash into cryptocurrency. Often called Bitcoin Teller Machines, these BTMs are installed in high traffic locations, such as shops, shopping malls, gas stations, and convenience stores, allowing easier access for the public.
This reduces the regular 3-to-5-day bitcoin trading process to several seconds, meaning that customers have higher money liquidity. Along with faster speed and higher liquidity comes increased financial inclusion, given that these machines are as user-friendly as transferring money to a bank account through an ATM. This also means that Bitcoin ATMs provides cryptocurrency access to the nearly 2 billion people who do not have access to bank accounts. These unbanked populations can use Bitcoin ATMs to take their first step into the cryptocurrency world. Another significant advantage behind the convenience of Bitcoin ATMs lies in the intuitive nature of people handling cash and ATMs. The physical presence can provide greater trust than online options to many.
Realizing that cash insertion function is critical, Genmega, the leading Bitcoin ATMs operator, has turned to CPI’s SC Advance note validator as their product of choice. The SC Advance note validator has superior storage capacity, storing up to 2,200 banknotes. The product’s low jam, high acceptance rate, and counterfeit protection removes customers’ concerns about getting their banknotes rejected at the ATM during critical moments.
A faster, simpler process of bitcoin trading is not the only benefit that Genmega’s Bitcoin Teller Machines provide. They established an easier access point to many who were unfamiliar with cryptocurrencies, or were hesitant to utilize bitcoin.
Today, Genmega installs more than 500 Bitcoin ATMs per year in the U.S., and all are equipped with the SC Advance validator from CPI. The average transaction per Bitcoin Teller Machine equals $150-200 in value, and commissions range from 8% to 20% on average. Small operators who keep these machines at their convenience stores additionally earn approximately $300 a month from rental space.
“Though everyone hears about bitcoins on the news, many of them are still unfamiliar with how to actually use them. I’m glad that our Bitcoin ATMs propelled the mass adoption of cryptocurrencies globally,” stated Wesley Dunn, Senior VP of Sales at Genmega.
“CPI’s note acceptors helped the Bitcoin ATMs to stand as an independent Bitcoin Teller Machine unit, so that the banknotes could be inserted automatically without anyone’s help.”
According to Coinradar.com, Bitcoin ATM installations have quickly risen along with bitcoin. The reason behind the popularity of Bitcoin ATMs are perhaps the fact that they are private. Most of the cash-to-bitcoin exchanges at Bitcoin ATMs do not require disclosing customers’ identification. It is also quicker, giving an advantage to both the buyers and the operators.
Cory Capaldi, the owner of Coin Bros, identifies in his interview that the main concerns are “security.” He explains that the traditional banking ATMs are backed by bank insurance that ensures reimbursement in the case of illegal activities. This is not usually the case with Bitcoin ATMs as they do not have central financial authority or insurance.
Faced with these concerns of security, efficient but safe cash solutions at the point of bitcoin-to-cash exchange is crucial. The costs associated with cash management can have a dramatic impact on profitability. CPI’s SCR Advance banknote recycler addresses this concern providing a more efficient way to accept, process, and handle cash payments at speeds that will improve customer satisfaction. High security modules offer a specialized inventory management system for cash stored in the recyclers. Another feature is the“door open” detection that ensures complete note accountability even in a powered down state eliminating the risk of theft.
The costs associated with cash management can have a dramatic impact on profitability. The SCR Advance banknote recycler addresses this concern providing a more efficient way to accept, process and handle cash payments at speeds which will improve customer satisfaction.
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About Genmega Inc. (Genmega): Since 2006, Genmega has been a leading manufacturer and provider of ATM and transactional kiosk solutions with well over 150,000 units deployed worldwide. Genmega’s products are built on a philosophy of cutting-edge engineering and technical integration wrapped in attractive, modern designs that invite customers in and maximize their returns.