Bitcoin ATMs should target developing and third world countries

[Mike Mayor]

Lot's of Bitcoin ATMs keep popping in the developed countries such as US, Canada, Japan, Hong Kong etc. But I have been thinking why don't the owner's target countries without much economic stability? Like Venezuela . That would increase the adoption. Something like backpropagation. What do you think?

The main reason is economics, people in developed countries are more likely to use these ATM machines and the companies installing them will have their profits and that will not be the case with third world countries as there might not be having the same profit percentage they get in bitcoin centric developed countries and the legal formalities they have to overcome are denting these developments, adoption will not increase if there is a bitcoin ATM machine as most of the machines i came across have high service charges and i would rather opt for other options to trade bitcoin rather than depending on ATM machines.

I don't understand the reason why people prefer to use a Bitcoin ATM instead of free centralized markets? There are no high fees for buying and selling Bitcoin but average people demand a new ATM everywhere. It will not profitable to put an ATM on the third world countries due to the cost and return on the investment.

What free centralized markets? Many of these people don't have access to a bank never mind that. With an ATM they don't need any documents or anything for getting fiat. Normally they will use a bank to get fiat but that costs money and proof of residence and they most like to live on an informal settlement. It will make a profit because it will be including transactions from people who otherwise would not make them.

[yulionoo]

the number of bitcoin ATMs every year continues to grow and currently there are 5000 bitcoins around the world and there are 90 countries that have bitcoin ATMs. and currently I live in a third country and in my country there are already 3 bitcoin ATM machines. so maybe if you want to research the majority of developing countries and third already have a bitcoin ATM. and in my opinion the presence or absence of a bitcoin ATM has nothing to do with adoption. Bitcoin adoption can be realized when bitcoin can be used significantly.

[DreamStage]

The thing about those ATMs are that for them to getting a place into developing countries it requires more government action and measures against all types of illegal casualties.

It all depends on how big the economy potential will be for them and if they have a win to win situation.
They also will have to get more understanding and explanation to their citizens else it will not be worth at all on having them there.

Overall yes i agree it is still a very good thing nowadays to have in every country.

[Vishnu.Reang]

It is easier said than done. The biggest problem is the vague legal definition regarding cryptocurrencies in many of the third world nations. Here in India, a few months back a few guys installed a Bitcoin ATM (in the city of Bangalore). But within hours, the authorities confiscated the ATM and arrested the promoters. They even seized their mobile phones and laptops. The authorities were claiming that the ATM was opened without obtaining a license. The promoters on the other hand claimed that they had requested for a license, but the authorities were not willing to issue the same.

[jhontwis]

Developing countries should establish an economic model for the blockchain. It would be in their best interest to allow Bitcoin ATMs. Because they are already back economically. A very good example of Malta allowed institutions like Binance.

[Asuspawer09]

Lot's of Bitcoin ATMs keep popping in the developed countries such as US, Canada, Japan, Hong Kong etc. But I have been thinking why don't the owner's target countries without much economic stability? Like Venezuela (btw they just got their first Bitcoin ATM). That would increase the adoption. Something like backpropagation. What do you think?

Surely this bitcoin ATM's is helping and promoting cryptocurrencies in a lot of countries. With this kind of ATM, it is not just a thing that a lot of people could see this ATM and wondering what is bitcoin, for me this could influence them to search about it or buy it. Probably this day this kind of ATM has a high fee since it was not yet fully implemented but still, it is a big help having this kind of technology.

[agentx44]

Lot's of Bitcoin ATMs keep popping in the developed countries such as US, Canada, Japan, Hong Kong etc. But I have been thinking why don't the owner's target countries without much economic stability? Like Venezuela (btw they just got their first Bitcoin ATM). That would increase the adoption. Something like backpropagation. What do you think?

I totally agree. Maybe things would work more for bitcoin ATMs in the developed countries but we are talking about the economy of the world and we cannot disregard the pull that third world countries may cause. It would be best if they would adopt on crypto as early as possible so that it may help their economy to rise up and keep up with the developed countries. We should use bitcoin and other altcoins capability of reviving the economy of some struggling countries so that the blockchain system all over the world would work even more functional and beneficial to everyone around the globe.

[Artemis3]

Funny you say it wouldnt be profitable to put a bitcoin atm at a location where there wouldnt be anybody who can afford to use it.
I remember seeing a picture of one put in the middle of the forest in costa rica.
Now that was an usual place to put it. Would the sloths there be making purchases.
Kidding aside. In these third world countries they still have tourists who go there and these are machines used for their point of convenience no matter the location. It just costs the owner who is running it the operating costs. And if they arent profitable they would just shut them down.

Well Costa Rica isn't that bad of a country. Do that in Venezuela and the whole thing disappears overnight. They might survive inside private property, with constant surveillance (ie. a Mall), but ATMs are useless with hyperinflation unless they stick to foreign currency. They just can't hold or give enough banknotes...

What the tourists need is for the merchants, restaurants, hotels, etc. to accept bitcoin directly. Besides the fees ATMs take are outrageous. Something like a sign with "BTC is welcome" would do wonders, even better if they could give price in bitcoin (and they use a rational exchange rate to the equivalent in fiat).

In my opinion ATMs have a bigger chance in developed countries, or at least in countries without rampant criminality or inflation, such as safe tourist spots.

[bitcoinsocial09]

Lot's of Bitcoin ATMs keep popping in the developed countries such as US, Canada, Japan, Hong Kong etc. But I have been thinking why don't the owner's target countries without much economic stability? Like Venezuela (btw they just got their first Bitcoin ATM). That would increase the adoption. Something like backpropagation. What do you think?

Developing this kind of  ATM was new to a lot of people since ATM was more on withdrawing cash if could now use it to buy bitcoin or even cash out or sell out bitcoin in the market,
for me it is a big step up in the bitcoin and cryptocurrency community telling a lot of people that bitcoin era was already getting started.

[jostorres]

Lot's of Bitcoin ATMs keep popping in the developed countries such as US, Canada, Japan, Hong Kong etc. But I have been thinking why don't the owner's target countries without much economic stability? Like Venezuela (btw they just got their first Bitcoin ATM). That would increase the adoption. Something like backpropagation. What do you think?

Well, you’re right, there should be lots of ATM machines being launched in developing countries but the problem is that since there isn’t much people who are making use of cryptocurrency, it might not benefit those that are running the ATM, so a lot of people are going to give up on it. Running a bitcoin ATM is going to be profitable if it’s being run in a country where there are lots of people making use of it.

I guess Venezuela is a good place because to what it seems there are lots of people that are adopting Bitcoin there. For other countries I believe that when the rate of adoption starts being noticeable, then there will be more features being released to them.

[bitbunnny]

That sounds reasonable but on the other hand there are two issues that might appear. Quality of infrastructure and knowledge and awareness of people about cryptocurrencies. If they are not familiar with Bitcoin and other crypto they will not use ATMs. So, fiirst there is some education and promotion needed in ordee that Bitcoin ATMs have the desired effect.

[codegnome]

Bitcoin ATMs typically charge between 7-10% for buying/selling bitcoins, a fee worth paying for some of us. https://coinsutra.com/how-to-use-bitcoin-atm/

Can you address this before bringing these ATMs to third world countries.

[Aikidoka]

Yes, exactly. I mean they should target countries which the economy is not stable, there like in 3rd world countries. Bitcoin ATMs will help them for sure to surpass the economic crisis and we'll see an improvement, As well as the people who will use crypto will grow more if bitcoin ATMs will be available in a lot of countries and it will be more famous, so people will be so satisfied with that and use it in a daily basis.

[Eugenar]

Bitcoin ATM never actually induces market adoption to bitcoin completely with newbies seeing this. They need people to introduce bitcoin so their questions about bitcoin could be answered right away.

I my self, in my first encounter to it, I think many times about trusting this system. How come if there is an ATM where they could readily put their money onto it, do we think they will trust it right away? No, for greater market adoption, conceptualization of bitcoin's principles are what we needed first before the implementation of it.

[iram3130]

I think we all know what happened when an exchange tried to put up Bitcoin ATM in India, Legal actions still going on and the team is still on target. Major reason why the ATMs are not popping up in third world countries. Too much negativity about crypto.

[Sithara007]

Bitcoin ATMs typically charge between 7-10% for buying/selling bitcoins, a fee worth paying for some of us. https://coinsutra.com/how-to-use-bitcoin-atm/

Can you address this before bringing these ATMs to third world countries.

There are a lot of additional expenses involved in running a Bitcoin ATM, and it is not as cheap as trading your cryptocurrency using an exchange. It may be possible to bring down the fee to somewhere around 5%, but I don't think that any further reduction is possible. If you reduce the fee any further, then you will be making compromises on other factors such as security, real-time exchange rates, legal support, technology.etc. IMO, 5% is not a huge amount. It is very much fair, especially if you are going for long term investment.

[tungaqhd]

Lot's of Bitcoin ATMs keep popping in the developed countries such as US, Canada, Japan, Hong Kong etc. But I have been thinking why don't the owner's target countries without much economic stability? Like Venezuela (btw they just got their first Bitcoin ATM). That would increase the adoption. Something like backpropagation. What do you think?

I think Bitcoin ATMs should target on countries which open to Bitcoin and have large Bitcoin user not matter they are poor or rich. Especially country which have much foreign tourist, because it would be very convenient to convert their money to local cash.

[dimox]

the legalization is needed if you want to build it. in my country, there are just three atm and they placed on popular place that many tourism. so when build on strange place like useless though they want to spread bitcoin existance. many people know about bitcoin but many people still ignorance about this one

[salty]

When you use an ATM, you withdraw cash and then spend it at the bakery, supermarket or whatever. If you use an ATM to get bitcoins then what do you do? Nothing at all, you can't pay anything with it. So why should a buyer use an ATM when it is more convenient to do it online and cheaper. Likewise, if you want to sell bitcoins, why would a typical user go to an ATM to sell his bitcoins?
There may also be a cost that makes these countries unprofitable for companies. If you're paid in BTC and can pay everything in BTC then the question won't be no more.

Well you can also use the Bitcoin ATM to withdraw cash.
Let's say you're visiting a country and you need cash in the local currency, all you need is a Bitcoin ATM. No bank, no credit cards...

Yes, in fact, for tourists, the presence of bitcoin ATMs would save a lot of time and effort. Suppose I was on vacation in one country and I just could not buy local currency for settlements. As a result, through a third party I bought this currency, but lost a decent amount on the exchange .If there was a Bitcoin baknomat in this country, then it would be a huge happiness for me at that time.How efficient the location of such ATMs in the countries of the 3rd world is, I don’t know. But if people have small incomes, then why do they need such ATMs at all. Agree?

[keyscore44]

the legalization is needed if you want to build it. in my country, there are just three atm and they placed on popular place that many tourism. so when build on strange place like useless though they want to spread bitcoin existance. many people know about bitcoin but many people still ignorance about this one

I am not supporting centralizing the cryptocurrency market, but for efficient operation and, above all, to protect normal people from scammers, regulations are needed. Without them, scammers will feel that no one can punish them, and honest companies will not be able to grow normally. The same applies to Bitcoin ATMs - there must be regulations first, and then the development of the network will start.