In this video, you will hear Adam from BC Systems responding to viewer questions. Below we listed some of the questions and answers for you, so you can check it out easily.
- Can you do a video about approaching locations for your machines? Also how much money can you keep in your machines both the Bitcoin and cash?
Adam explained how first you will need to approach the business owner of the location, which can sometimes be tricky since they often aren’t available directly on the location. Especially if they own multiple stores. This is if you are doing the groundwork yourself and you don’t want any additional cost.
If you don’t have time to go around looking for locations, there are guys called the “Locators” whose job is to go to different locations and put your machine in various stores. They charge a small fee, usually around 150-300 dollars depending on the location.
As for the amount of money and Bitcoin kept in the machines, Adam explained that it really depends on how your machines are running. You need to monitor them every day to check on the number of transactions and decide the amount of Bitcoin to cover their needs. You also need to monitor the trends, because you definitely don’t want to buy too much Bitcoin when the price is going down, or fluctuating too much.
- How much profit did you make per machine?
Adam shared the numbers, saying that at one of his first machines at Tyler he made $32,000 gross and on one of the others he made $16,000. So it really depends on the location but if you add up to 5-6 machines you can get a pretty good profit.
- Do you have to own any Bitcoin before buying the machine, or do customers buy Bitcoin from an exchange?
In the beginning, you need to stack some Bitcoin for sure. Adam started at $3,000. But as the time goes on there will be people buying and selling the Bitcoin on your machine and it really depends on their behavior how much Bitcoin you will need to add to keep the business operating.
- What machine brand do you have there?
Here Adam emphasized that, although they have a distributor from which they purchase their machines, the branding is done by him and the designer. As per Adam branding is really important for the customers, since people will rather put their money in a machine that looks good, has a logo and contact information than some shady no-name ATM.
- How do you handle fluctuations in Bitcoin prices?
As mentioned earlier, the point is to monitor the fluctuations in the price and the behavior of the customers. You definitely don’t want to overstack and take the risk of price going down, and on the other hand, you want to cover the customer needs.
- Who supplies the Bitcoin? is the machine tied to Coinbase or some other similar exchange?
Adam explains that there are two options. You can connect to the Coinbase or other exchanges, which is too complicated for him and he doesn’t use it. Or you can buy Bitcoin and send it to your wallet to fulfill your orders.
- What do you think of buying a machine on eBay?
Definitely not! Because you don’t know what you will get. Adam says that the hardware is the easier part, but the software can get you in more trouble if it doesn’t run correctly. Also, even if you are buying a brand machine on eBay, you need to be sure that the manufacturer will provide you support without a contract, and support is important because the machines tend to break down.
- How much do you have to have in the machine for cash withdrawals?
This also depends on what you want or need. Some people want to put the money in the machine and let it sit there, but Adam doesn’t do that. As he says, he only recycles the money that customers put into the machine. In other words, if someone comes and buys Bitcoin, he will not withdraw that money but keep that money for the customers that will come to sell.
- How complicated it is to obtain a license?
It varies from state to state. For instance, you will find it much harder to obtain a license in New York than in Nevada or California. Luckily nowadays a lot of the companies that are selling the machines will also help you with compliance.
In the end, we must note that Adam mentioned multiple times that he is open to provide help to anyone, whether it is advice, business opportunity or sharing a contact, so feel free to reach him.
To summarize, if you are running the Bitcoin ATM business it is better to buy the machines form the manufacturer itself because you will get proper support and they can help you with the compliance. After you find a couple of suitable locations you must monitor the transactions and the Bitcoin price so you don’t over-invest and lose money on the price fluctuation.