Category Archives: Operating bitcoin ATM

Bitcoin Depot ATM

Bitcoin ATM Questions 2020 Q&A with Adam from BC Systems

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.

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A Chat With CoinFlip About Bitcoin ATMs

In this interview held in December of 2019, you will hear Daniel and Dustin from one of the largest Bitcoin ATM Operators – CoinFlip talking about the business.

In the beginning, Daniel talks about the difficulties they had to overcome when they started. Apart from the regulations and obtaining the AML policy, which they learned that needs to be done on the example of Charlie Shrem, he states the cash flow as one of the unexpected drawbacks they faced. He explains that it takes a week for an armored car to pick up the money and two more days of processing, so it’s a nine-day lead time on the cash that they need so they could buy more bitcoin and keep the business expanding.

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Bitcoin ATM Operators Growth and Survival Statistics

Public opinion about bitcoin ATM business varies, but mostly it is split into two radical sides: either “machines are not used by anyone and hence operators don’t make any money”, or “the fees charged are usually so huge, probably operators do a lot of money”. Obviously, both extremes do not correspond to reality, as if it was not profitable, there would be not that many businesses doing this long term, on the other hand, the fee size is dictated by market and there are plenty of various costs and risks associated with this business.

In this post we analyze historical data available on the website about operators growth and closure of activities. We analyze activity of total 870 operators on the website, since October 2013, when the first publicly accessible ATM was installed, and up to the end of January 2020.

Number of crypto ATMs by operator
Number of ATMs per each operator over time

The chart above summarizes information, that is used as a source for analysis — number of ATMs installed by each operator on the 1st day of each calendar month.

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Peter McCormack’s Bitcoin ATM Podcast #1 – Operating Bitcoin ATM with Gil Valentine and Eric Gravengaard

Peter McCormack in his series of podcasts covers bitcoin ATM operations from various angles. If you are looking into operating of bitcoin ATM’s the full series of 5 episodes will be an interesting listen.

The first episode is with Gil and Eric from Athena Bitcoin, one of the largest operator on the market. They also one of operators who expanded business over national border and installed ATM’s in Argentina and Colombia.

Gil and Eric met 5 years ago and thought about business opportunities of getting into the money flow related to cryptocurrencies. In late 2014 they started a business with several ATM’s in Chicago area and saw an immediate demand. Then expanded business to other states and countries with currently 65 ATM’s in the U.S. (in 8 different states), 22 in Colombia, 11 in Argentina, and are looking to expand into Mexico.

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The Promise of Lightning Network ATM’s

In this post we have a brief overview of what Lightning Network is and how it can and is integrated with existing cryptocurrency ATM’s. We check what are potential advantages and disadvantages of using LN payments for both users and operators.

Lightning Network Overview

There is a lot of information on what Lightning Network is. In short, it is a second layer protocol on top of cryptocurrenices like Bitcoin, Litecoin etc. Effectively, two users have a mutual (multi-signature) transaction on the base layer and then exchange signed new transactions, which are not broadcast to the base layer network and hence are not included into blockchain. Only last transaction in a sequence of exchanged signed transactions (commitment transaction) is broadcast to the blockchain, when one party decides to close the financial relationships with counterparty. Such funding transaction and exchange of signed transaction is called a payment channel.

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Bitcoin ATM’s Profits and Cost Breakdown

In this video, you will hear Adam from BC Systems talking about what profits you can expect, as well as the cost options and operating your very own Bitcoin ATM Company.

He divided his presentation into four parts: Location, Cost, Marketing and Fees.

Location

Location is probably the most important part of the planning and operating your Bitcoin ATM Company. Of course, there are different variables when it comes to choosing a location like foot traffic, competition, and potential fees. In his experience shopping malls are the most successful locations for a couple of reasons.

First of all their working hours. They are usually open from 8 A.M. to 9 P.M. and they also tend to work on holidays, so the overall availability of the machines is going to be excellent.

Secondly, shopping malls present a safe place for people. When they go to a public place, where there is a lot of crowd, they feel like they are going somewhere reputable and feel much safer than going to let’s say a liquor store or a smoke shop where there aren’t usually a lot of other people around. This is especially true for guys who are making large transactions, they always want to feel safe and comfortable carrying their money.

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Interview with Daniel Polotsky, CEO of Coinflip Bitcoin ATM’s

In this interview you will hear Daniel Polotsky, the CEO of Coinflip Bitcoin ATM’s, talking about his introduction to the crypto and Bitcoin space, as well as regulations and finance.

At first, he tells an interesting story about how he got the idea to get into the crypto ATMs. Considering that in the beginning, crypto ATMs were not at all user-friendly, he had to turn to a website called LocalBitcoins and organize meetings with people so they could trade Bitcoin in person, for cash. On one of those meetings, he started talking with the person he met and after realizing that, as they put it: “if you meet too many people in a Starbucks you’re probably eventually gonna get killed“, they decided that there is no better way to trade in crypto than ATMs, and so they went for it.

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Perfect case for bitcoin ATM’s – accompany cannabis vending machines

During the recent years there was natural growth in two industries — bitcoin ATM installations reached almost 6000 as of end 2019 and cannabis industry legalization was happening steadily over time in various US states. In this article we check how the two industries fit together and factors that can be beneficial for both sides from synergy.

Bitcoin ATM for Cannabis Industry
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Bitcoin ATMs – Everything You Always Wanted to Know (*But Were Afraid to Ask)

In this interview Cory Capaldi, the CEO of TheCoinBros will discuss many frequently asked questions and even teach you how to avoid the most common Bitcoin ATM scams.

In the beginning, Cory is talking about how it all started and how he was the first one to introduce the Bitcoin ATM in San Joaquin County. He also talks about the plans they have for financing education as a philanthropic way to get back to the community. He also mentions some super-secret plans for the future, but he couldn’t say too much about it… we’ll see if they turn out as they planned.

Later on, when asked what are things that most people don’t know about Bitcoin ATMs, he emphasized two points. First of all, they don’t know how they work, and secondly, they don’t know why do they exist.

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Charlie Shrem and Lennart Lopin on Bitcoin ATM’s

In the following interviews, Charlie Shrem is talking with Lennart Lopin, a representative of Byte Federal, about Bitcoin ATMs.

At the beginning the guys are talking about the early Bitcoin, mentioning how in the past there was no real way to buy Bitcoin. Interestingly they say that we can look at it as a bridge connecting one piece of land with another, old piece of land. Where the old piece of land is the traditional banking system, and the new land is Bitcoin. That way we were having to rent other bridges and pay a very high toll in order to get into cryptocurrency.

Further on, they are talking about how nowadays it’s normal to go anywhere in the USA and find Bitcoin ATMs, and rely on them. As opposed to the beginnings in 2014, when the market wasn’t ready yet.

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