In this interview held in September 2017, Kenn Bosak speaks with CEO of RockitCoin Michael Dalesandro about Bitcoin ATM’s.
Michael started in the trading business in the pitch Chicago Board Options Exchange back in 1990, after which he created a first social network travel company built on the back of Facebook. After it built up to over 10 million members he sold it to Expedia. After that, he needed to figure out what’s next, and after researching the blockchain and got interested, he decided on Bitcoin ATM’s, as it was the closest to the money that he could go as he was learning the business. Now he owns the third largest Bitcoin ATM company in the USA.
What is one of the biggest hurdles of being a Bitcoin teller machine?
The way I define it is that there are three main hoops: compliance, operations, and customer service. That is because bitcoin machines are 24 hours.
At the beginning of September, the price of Bitcoin was $7,101 and rose slowly for the next 3 days. After that, the price fell significantly and hit $6,433 on the 6th. For the rest of the month, the price never crossed the $7,000 mark. September ended with the price of $6,593, which is a 7% decrease in comparison to the beginning of the month.
Unlike the price fluctuating trajectory, the number of new machines continues to grow at an approximately same rate as in August.
Period Start: 3635, Period End: 3801
Opened: 228, Closed: 62, Net Growth: +166 (+4,6%)
This August started with a Bitcoin price of $7,571 and continued to decrease until it hit the lowest price $6,051 somewhere in the middle of the month. After that, the prices started to grow nearing the end of the month. August ended with a Bitcoin price of $7,248 which is a 4,3% decrease compared to the price at the beginning of the month.
Unlike the price fluctuating trajectory, the number of new machines continues to grow. Compared to the previous month, the growth was considerably higher in August.
Period Start: 3486, Period End: 3662
Opened: 241, Closed: 65, Net Growth: +176(+5.0%)
Paul first heard of Bitcoin back in 2012 and really did not pay much attention to it, like most people and over the years he thought it was cool technology, but never really sunk in until 2 years ago. In 2016 the Bitcoin got really crazy so he started to go down to the Bitcoin rabbit hole. As he became more and more passionate about the technology he really wanted to do something different. With a help of his friend he bought his first 3 machines and started his business. He also states that in order to go into the Crypto ATM business you need to be passionate about the technology and to understand how the money works.
In the first half of July the price of bitcoin maintained a steady flow, keeping the value between $6,250 – $6,750. While in the other half of the month, the price started to grow. The month ended with a price tag of $7,917 which is an 24% increase in comparison to $6,375 at the beginning of the month.
Accompanying the upward price trajectory was the growth in the number of new machines, but the growth is significantly slower than in previous months.
Period Start: 3415, Period End: 3470
Opened: 187, Closed: 132, Net Growth: +55 (+1.6%)
The end of period of quick growing prices also result in some slow down on bitcoin ATM market. We steadily have several second-hand bitcoin ATMs for sale, which was empty section during several months of high prices. Also as manufacturers deliver machines to operators with delay of several months (usually about 3 months) approximately middle of spring was the time when machines ordered on the peak of hype were delivered, since then the installations speed reduced.
Article is provided by Jennifer L. Moffitt, a privately practicing attorney. Contacts can be found at the end of the post.
In the United States, virtual currency, such as Bitcoin and other similar coins, and virtual currency exchanges have been subject to federal regulations, with taxation and financial crimes the most prominent regulatory issues. However, it is at the state level that regulation of virtual currency has been most contradictory. The U.S. states have mixed responses to the emergence of cryptocurrency. Some of the states have ignored cryptocurrency by not implementing or amending any laws that address virtual currency. However, other states have taken action with some states somewhat hostile towards virtual currency while other states are more welcoming. In a number of states, the response towards cryptocurrency is currently ambiguous with no actual position taken. This discussion will attempt to categorize regulations by restrictions placed on virtual currency and identify states by category of regulation. In addition, the implications and effects of widely divergent state level legislation and regulations will be examined.
State Level Cryptocurrency Regulatory Tools
There are several regulatory tools used by states to regulate and control virtual currency. These include money transmission laws, licensing requirements and regulatory guidance. A brief summary of these tools is provided below.
In the following video from the Bitcoin meetup held on 1 May 2017 in Zurich, Zach & Josh Harvey, Co-Founders of Lamassu talk about their company, why they started a Bitcoin business and what it’s like.
Lamassu Inc. is one of the first bitcoin ATM producers and oldest Bitcoin companies still operating today. Their Bitcoin machines are among the most popular (top 3 manufacturer list), with almost 400 machines deployed all over the world.
In June the price of Bitcoin followed the trend form May and continued to move in the downward trajectory. At the beginning of the month, the price was $7,535. It continued to fall, even reaching the lowest value in this year at $5,909 on 29th June ended at $6,381, which is a 15,3% fall since the beginning of the month.
Unlike the price downward trajectory, the number of new machines continued to grow.
Period Start: 3177, Period End: 3399
Opened: 282, Closed: 60, Net Growth: +222(+7.0%)
Unlike the prices that fluctuate since beginning of year, the number of new machines continues to follow a steady increase. This trend continues in June.
Since launch of Bitcoin in 2009 cryptocurrencies gain more and more traction every year. Many people hear and research cryptocurrencies when next boom happens and price grows rapidly. Significant number of people already hold cryptocurrencies, even more plan to hold in the future.
Disclaimer: This article is not a financial advice to invest in cryptocurrencies. Reader needs to conduct own research before purchasing any amount of cryptocurrencies and understand the risks associated with it.
In the following video from TabConf held in January 2018, Brandon Mintz, the president of Bitcoin Depot, talks about the value of bitcoin ATMs during Bitcoin’s mainstream adoption.
Bitcoin Depot is an operator that works with Genesis Coin, and at the moment of this conference, they had 104 machines installed. As he says, there was a rise in demand for a more physical feel when having cryptocurrency transactions that are more similar to cash ATMs and provides people with a trust factor.