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VendingFanatic

Bitcoin ATM machines...advice?

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Since Bitcoins are virtual only, I don't see how that would work.  It sounds like a scam.

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That doesn't mean anyone is getting a return on their investment though so that would be a scam.  How would a transaction even work?  Do you withdraw virtual bitcoins to your phone?  Where, then, could you spend them?  If it's just a way to transfer fake money around you can do that online.

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As many of you know, I'm in the ATM business.  In the last few weeks, I've been asked over a dozen times about Bitcoin.  Honestly, I just don't understand bitcoin or any cryptocurrency.  My biggest hang up is where it comes from.  The answer I always get is "it's computers that mine for it like gold, the computers solve complicated math problems." , the amount of stupid questions I have after that are too vast to even begin asking.

Anyways, I did a little research and I'm far from an expert.  The Bitcoin ATMs you can buy or sell bitcoin.  If you are buying, you insert the cash the cash into the ATM, and the ATM provides a QR code that you scan with your cell phone and it adds the bitcoin to your "vault". 

If you are selling, you create a QR code with you vault, scan it at the ATM and the ATM dispenses cash.

The ATM charges a fee to do these functions.  You are able to buy and sell online, but the advantages of physical ATM are 1) If you are buying, you can use cash to buy and you stay anonymous, which for bitcoin geeks seem to be important.  2) If you are selling, you are pretty much just doing one transaction and able to immediately turn the Bitcoin into cash.  If you sell online, you are selling the transaction and then withdrawing cash (pretty much 2 transactions).

As far as an opportunity I can see it two ways.....

1. )  An early adopter - You will most likely be able to have a choice of locations.  Locations will be easy to get.  You will be in front of the curve. Unfortunately, the future of Bitcoin it very grey.  Government regulation is almost certain. Risk seems very high, but if it hits bit and you are in early - the rewards could be huge.

2.) A wait an see approach - You could miss the best spots, the learning curve be greater if you wait.  

A Bitcoin ATM costs between $6000-$10,000.  The return on investment on a traditional ATM, still seems better.  I'm personally going to keep a very close eye on it, stick with traditional ATMs, continue to learn and understand.  If I see this moving towards critical mass, I may try to jump in.  A friend advised me to add "first right of bitcoin ATM refusal" to any new ATM contracts (although I'm not a big contract guy)

Hope this helps and creates conversation.......

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On 10/7/2017 at 12:19 PM, AZVendor said:

That doesn't mean anyone is getting a return on their investment though so that would be a scam.  How would a transaction even work?  Do you withdraw virtual bitcoins to your phone?  Where, then, could you spend them?  If it's just a way to transfer fake money around you can do that online.

Bitcoin is not 'fake money'. In fact, U.S. dollars is actually more 'fake' than bitcoin is, in that the federal reserve simply prints out paper, it's not backed by anything and they can print out an unlimited supply of paper money. Whereas, bitcoin has a limit on how much can be created (mined). Therefore, over time, bitcoin will not lose it's value as fast as u.s. dollars do because something that is of limited quantity will have more value. There are already certain foreign countries that do not accept the u.s. dollar. The U.S. dollar may lose it's value in the next decade.

Anyway, that ^ is a topic of discussion for another day. 

I'm on the fence about buying a bitcoin ATM machine because I live in a state where people do not adopt fast to technology and people where I live are very traditional and old fashioned. So I do not think investing in a bitcoin ATM machine in my location would be in my best interest.

I am going to keep an eye on the news. But, my news stream, shows that crypto currency is becoming more and more accepted each and every day. 

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1 hour ago, VendingFanatic said:

 

I'm on the fence about buying a bitcoin ATM machine because I live in a state where people do not adopt fast to technology and people where I live are very traditional and old fashioned. So I do not think investing in a bitcoin ATM machine in my location would be in my best interest.

I am going to keep an eye on the news. But, my news stream, shows that crypto currency is becoming more and more accepted each and every day. 

Your not going to have good success in such a place. Most people who are accepting and using Bitcoin are young tech people living in large cities. Most older folks and non tech people don't trust this kind of stuff, hell some still don't use credit cards.

 

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3 hours ago, VendingFanatic said:

Bitcoin is not 'fake money'. In fact, U.S. dollars is actually more 'fake' than bitcoin is, in that the federal reserve simply prints out paper, it's not backed by anything and they can print out an unlimited supply of paper money. Whereas, bitcoin has a limit on how much can be created (mined). Therefore, over time, bitcoin will not lose it's value as fast as u.s. dollars do because something that is of limited quantity will have more value. There are already certain foreign countries that do not accept the u.s. dollar. The U.S. dollar may lose it's value in the next decade.

The next few year will be very interesting for Bitcoin.  The fact that our Government can control it and pass laws regulating Bitcoin, makes it less of a currency than the US Dollar.  Most lawmakers are over 40 and like me do not understand it (or the power it), so the laws that are passed will most likely not be right the first time around.  Liken it to Marijuana in, not until the children of the 1960's became lawmakers, did it ever have a chance to become legal.  

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On 10/8/2017 at 12:51 AM, BluePlate said:

As many of you know, I'm in the ATM business.  In the last few weeks, I've been asked over a dozen times about Bitcoin.  Honestly, I just don't understand bitcoin or any cryptocurrency.  My biggest hang up is where it comes from.  The answer I always get is "it's computers that mine for it like gold, the computers solve complicated math problems." , the amount of stupid questions I have after that are too vast to even begin asking.

Anyways, I did a little research and I'm far from an expert.  The Bitcoin ATMs you can buy or sell bitcoin.  If you are buying, you insert the cash the cash into the ATM, and the ATM provides a QR code that you scan with your cell phone and it adds the bitcoin to your "vault". 

If you are selling, you create a QR code with you vault, scan it at the ATM and the ATM dispenses cash.

The ATM charges a fee to do these functions.  You are able to buy and sell online, but the advantages of physical ATM are 1) If you are buying, you can use cash to buy and you stay anonymous, which for bitcoin geeks seem to be important.  2) If you are selling, you are pretty much just doing one transaction and able to immediately turn the Bitcoin into cash.  If you sell online, you are selling the transaction and then withdrawing cash (pretty much 2 transactions).

As far as an opportunity I can see it two ways.....

1. )  An early adopter - You will most likely be able to have a choice of locations.  Locations will be easy to get.  You will be in front of the curve. Unfortunately, the future of Bitcoin it very grey.  Government regulation is almost certain. Risk seems very high, but if it hits bit and you are in early - the rewards could be huge.

2.) A wait an see approach - You could miss the best spots, the learning curve be greater if you wait.  

A Bitcoin ATM costs between $6000-$10,000.  The return on investment on a traditional ATM, still seems better.  I'm personally going to keep a very close eye on it, stick with traditional ATMs, continue to learn and understand.  If I see this moving towards critical mass, I may try to jump in.  A friend advised me to add "first right of bitcoin ATM refusal" to any new ATM contracts (although I'm not a big contract guy)

Hope this helps and creates conversation.......

Excellent discription of a difficult subject.  I agree, Bitcoin is probably not a good investment, yet.  They do well at Universities, International airports, amusement parks, International Hotels.  Those spots are going fast.

 

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I dabbled in Bitcoin and lost (only) hundreds of dollars via websites shutting down, garbage software, and transactions that won't confirm. Transactions take forever and more difficult than PayPal or a credit card. Bitcoin is crap... just by two bits. 

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I agree that bitcoin is a bit limited, but crypto is here to stay. If getting a bitcoin ATM, I would advise getting one that can also easily do altcoins, so you are not tied to the success of just bitcoin, if another coin takes dominance in the space.

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