Crypto ATMs are having high commission rate comparing with the exchange trading fees but if the exchange doesn't have any KYC requirement for buying and selling then its worth celebrating and hopefully the ATMs will increase across the world so the emergency withdrawal can be more convenient.
But what about the regulations and how much the commission rate, is it affordable or unfair?
I think most people are using Bitcoin ATM because they're curious and want to get experience, but it's not for long term usage when they're have many choices.
The commission rate of Bitcoin ATM is unfair because you're overpaid the fee, when the Bitcoin network is busy, the fee will increase too. Bitcoin ATM seems successful because not many people know the place to trade Bitcoin via P2P, but when Bitcoin already adopted as legal tender and it's already common to use Bitcoin. It's either Bitcoin ATM will bankrupt or they will adjust the commission rate.
Agreed on the high rates, it's annoying and will keep most serious investors away for now. However I think there are some very "valid" reasons for this:
- Currently Bitcoin ATMs are a high-risk business, it's still very niche and most people are probably very skeptic when encountering such an ATM
- usually only small amounts are traded via ATMs
- these businesses are mostly small start-ups. Hardware and software maintanance are not easy, unless they are already esablished on the market for a longer time, so they probably need to get their initial investments back
- it's still such a tiny market, you won't find much competition, so they are not really incentivised to have competitive rates.
All this should change to the better over time, resulting in lower, more competitive rates (compared to regular exchange rates).
