So, Bitcoin ATMs might not be the biggest thing for boosting Bitcoin usage, but they do show that people are actually adopting it. South Africa is leading the way in Africa when it comes to Bitcoin ATMs, with about 15 to 20 of them scattered around for easy access for everyday users.
For many folks, being able to swap Bitcoin for fiat or a specialized Bitcoin card is like a dream come true. South Africa is really making strides with this new ATM rollout.
How does this bitcoin ATM works? Is it like a device you input your private keys so you can have access to to your wallet and spend some bitcoin even if you are not having your computer with you?
More like a device which has options: you can input your ATM card or use the cash (this shown machine on the screen dont have cash deposit option) deposit option and select which amount of bitcoin you want to buy, scan the address where you want to send the bitcoin to, and then send it. It's more where you can use it to buy bitcoin and not where you use your private key to view your wallet.
They usually charge really inflated prices for Bitcoin, over spot price. I think they were cool and really useful back in the day. The no KYC ones are desirable but due to government overreach they are few and far between these days. I dont see why anybody would want to use them these days to be honest.
The premiums and high fees really make those Bitcoin Atm became unattractive to use if we compare it on those top exchange which asked less fees.
But somehow its still serve its purpose, especially for people looking for accessibility without the presence of bank. Those Bitcoin ATM still useful for people want quick cash and ignore those fees and travelers.
Even No- KYC option became less nowadays, there are really people out there prefer convenience than take long routes or hassle before they can withdraw their cash. So even if this is not the cheapest option still I think those ATM still relevant to people needs those machines.
According to Coinatmradar, there are 33 bitcoin ATMs in South Africa: https://coinatmradar.com/country/197/bitcoin-atm-south-africa/. This is the highest in Africa.
I think the reason countries like Nigeria do not have many bitcoin ATMs is becusee bitcoin does not need ATM to exist while also the transaction fee on the ATMs are too expensive. Up to or more than 10% of the amount of bitcoin that you want to exchange.
Bitcoin and cryptocurrency ATMs are not the best choices and they're like one of last choices when people don't have other options to buy bitcoin, cryptocurrencies or sell these things. The biggest disadvantage of such ATMs is their very expensive service fees that can be up to 20%.
Bitcoin ATM Deposit Exchange Rate shocks.
Another reason is KYC at different levels depends on local laws but mostly KYC required so if you care about privacy, you won't use such ATMs with KYC requirement and camera on site too.
I dont get the excitement behind bitcoin ATMs. As others have said, the insane fees is the problem. In the past, people accepted the fees as a price for anonymity but now I dont see the value in them anymore since you can buy bitcoins using decentralized exchanges for lesser fees.
Wow that's nice, so even without a card, you could easily access you wallet just by imputing your private key. As long as this facility has gotten to African, am good with that, I believe with time it will spread towards East and West Africa. Hence it gets to this parts of Africa, it will definitely encourage more adoption and spread bigger awareness. But then I know the locations might just be few.
This is a good news for from African Bitcoiner as it means that Bitcoin is still gaining greater adoption in Africa. In Nigeria we have only two Bitcoin ATMs and they are both located in Lagos. I have not been hearing much about those Bitcoin ATMs and if they are still operational. Even though I have not used a Bitcoin ATM before, I had the plans that anytime I visit Lagos I would have used them for the first time just for the experience.
Oh the first statement isnt exactly true. Having bitcoin atm machines are one of the reason that could kick in adoption on every countries on the planet. How come you believed its doesnt have big impact?
Its good that there are bitcoin machine being deployed in your country. We had too on our country and its a help to those who arent familair with it. Ofcourse curiousity to those guys are high and seeing it on their own eyes how bitcoin expand could let them try it and learn about more about it.
Bitcoin ATMs are very effective in increasing the acceptance of Bitcoin, by giving easy access to Bitcoin users to exchange their Bitcoin. But basically, many people here are not excited about this news because these ATMs charge very high fees which makes it very expensive for Bitcoin users to use the ATM. So I think these ATMs should be made cheaper for more Bitcoin users to make Bitcoin more acceptable in regular life. This is my personal opinion, and I hope that one day Bitcoin ATMs around the world will play a big role in people's regular transactions.
No, do not ever input your private keys into a bitcoin ATM. Without a card, you can buy bitcoin with cash and by scanning your bitcoin wallets QR code. You could watch this video for a better explanation.
Well, I guess you dont mind paying massive fees for an experience.
Your point that South Africa is most active use country on continent is well shown by fact that this nation has already turned into power of crypto in Africa. Although it is true that I do agree with your point on importance of ATMs, I would like to point out that ease of use of most of 7 million users now happens through fast bank links and not just through real machines.
I believe that success of South Africa can be explained by fact that it officially rules crypto as money item, leaving it in test step and entering daily life. You are, in fact, correct in the end because South Africa has made huge jump and has made plan of how growing country can build working and grown up crypto system.
That's good news but unfortunately, there are no Bitcoin ATMs in my country yet, even though there is no news of installing any. Maybe we have not reached this point of development yet. But we are progressing with time. They have introduced a legal framework for the crypto industry. But still does not talk about Bitcoin ATMs.
Maybe because not a lot of people have been using them due to the fees being so high because even 5% is very high for most of the people and these ATMs charge even 12% or maybe more in some regions. The rules these atm providers have to follow are also strict, like if their atm machines used for some illegal stuff they will be jailed and also fined. So this really puts them in a lot of struggle but the return is huge but it will only worth it if a lot of people are using them.
If the money is well checked, like it should be real, and should not be fradulent then I will even pay 10% for using it but still 10% is a lot.
While these Bitcoin machines may seem impressive, their high fees make people think twice about using them to buy or sell Bitcoin. However, for those looking for quick cash, they might be helpful, especially for Bitcoin holders visiting the area. They might be able to use the machines to get some cash and avoid having to visit a money exchange office to get local cash. They still have a purpose, though only for those who need it.
It is nice to see that the offer to buy Bitcoin is increasing. But it would be better if people connected directly and traded their Bitcoins. I mean p2p without another dealer between them. Trust is an problem, and crime, but in the future I believe p2p will become more attractive, because DAC8 or MiCA could be a problem if you want to stay anonymous. P2p trades arent difficult, maybe we should try that first.
And some people don't call their mobile number, which the ATM asks for KYC, and did not even also pay attention to the capture the camera on the machine takes of them, because I still see some people saying Bitcoin ATMs are KYC-free, and this set of people includes my relative that is based abroad. KYC is not only when a service asks for ID or passport, like some claim.
The idea of easily converting bitcoin to fiat for quick use is interesting and can prompt many people to adopt Bitcoin too, but personally I am worried about the regulatory risks involved. Getting to use these machine may come with some KYC requirements that exposes identities according to governments orders. Government decides how it is used, failure to comply may lead to sanctions from the government, including shutting down operations or restricting users from having access to their bitcoins. I do not love the idea of the government getting involved. That is why I will not use it personally if this device lands in my country.
I guess it's a cool story, but I wonder what the number is for this. Do they see an increase in ATM transactions that they open a new one? I'd expect the arrival of privacy-focused instant swap or exchanges to attract users who want to swap their Bitcoin for fiat/stablecoin without needing an ATM to do so.
Anyway, in my country, the story of Bitcoin ATMs seems to have stopped. People moved on to exchanges since they're regulated and offer more products, I guess. Not that I'm going to use them regularly in the first place.