BitBrokers ATM tested out

[williamj2543]

Hey, I am currently on a vacation in Victoria, British Columbia, Canada and I heard that a new bitcoin ATM was built. I looked on the internet to see where it was and it was only a 5 minute walk from my hotel. The bitcoin ATM was in a store called "hemp and co" (I don't like that it was in a hemp store, makes bitcoin seem more of a blackmarket currency only for hipsters and drugs) on 1102 Government Street. I went in, the machine was pretty big, looked nice. Theres a touch screen on it, with a cash output, a cash input, a hand scanner, a qr code scanner, and a credit card reader I think. I decided to try out selling the minimum amount of BTC, just for fun. The minimum amount was 20$, in 20$ increments, so I got 20$. The exchange rate was absolutely awful, it was about 100$ CAD less than the current market price, which is around a 20% reduction. I had to pay about 0.042 BTC for 20$. I didn't notice any other fees, I think the fee was put in the exchange rate. Selling was extremely simple and fast, but too fast. You click pay, and it prints out a voucher. After you click pay, you send the bitcoin to the qr code on the screen (address is also there), and it gives you I think 15 minutes to pay. You click redeem voucher once you send it, and then if your transaction was sent (doesn't need to be confirmed), it prints out your cash and away you go, no hand scanning for selling BTC. The problem with this is that it doesn't need to be confirmed. I could easily double spend that after I get my cash, and since they didn't get my handprint or anything, they couldn't track me down. Adding a confirmation would make the process take a lot longer, but maybe you could come back with your voucher 10 minutes later and redeem it then, that would be a good solution.
Overall it was a pretty cool experience, first ATM experience with bitcoin, actually first real world experience with bitcoin, but I wouldn't use it again. I got ripped off about 0.005 BTC through a terrible exchange rate, and if you were selling a whole bitcoin, you would be ripped off 100$ CAD.

[1715253603]

1715253603

[1715253603]

1715253603

[1715253603]

1715253603

[btckold24]

ouch at that exchange rate but I guess thats how people get their money back

[LiteCoinGuy]

the fees are so high because there is not much competition at the moment. i guess that will change in the future.

[haploid23]

Selling was extremely simple and fast, but too fast. You click pay, and it prints out a voucher... I could easily double spend that after I get my cash

There's no such thing as too fast. Imagine if you wanted some quick cash, but have to stand there an average of 10 minutes before being able use your cash at a hotdog stand across the street. And I don't think it's THAT easy to force a double spend, otherwise it would be widespread by now. Nearly every restaurant that accepts btc don't wait for confirmations before giving you your food (or letting you leave). The same thing applies here, and IMO that's rightfully so.

[CoinATMRadar]

I could easily double spend that after I get my cash

Can you give a hint for exact steps to do this?

PS
Thanks for sharing your experience. On my site, I have the fees set as 5% for this machine, and this is what I received from the owner, but according to you it is much higher. Do you remember the sell/buy rates exactly? Or maybe even have a screenshot?

[williamj2543]

The exchange rate was set at around 465 cad, and it was about 565 cad in real value. I didn't see  any fees or anything  I think it's the first atm and only atm in Victoria so they can do what they want and still get everyone to come to their store.

[tinof]

the fees are so high because there is not much competition at the moment. i guess that will change in the future.

People can use local dealer for cheaper fee. Think people just want to try out the ATM.

[itsAj]

the fees are so high because there is not much competition at the moment. i guess that will change in the future.

At one point there was a guy sitting in the coffee shop that houses the original BTC ATM in Vancouver who was competing with the ATM there. I am not sure the exact rates he was offering but the were better then the ATM was offering. The ATM owner countered this by hiring someone to "man" the ATM to educate people about bitcoin and help them use the ATM.

[zymafluo]

The only competition for ATM's is Localbitcoins, but not always is so easy to find a deal through the website.

[itsAj]

The only competition for ATM's is Localbitcoins, but not always is so easy to find a deal through the website.

There are also other ATMs. Just because there is one ATM in one part of town doesn't mean that another ATM operator can't put another ATM in another part of town. I think this kind of competition will likely drive down the overall cost of buying BTC via ATMs.

[CoinATMRadar]

I think it's the first atm and only atm in Victoria so they can do what they want

There are three Bitcoin ATMs in Victoria, please check here http://coinatmradar.com/
two Robocoin machines including the one you visited and one lamassu machine

[wasserman99]

The only competition for ATM's is Localbitcoins, but not always is so easy to find a deal through the website.

There are also other ATMs. Just because there is one ATM in one part of town doesn't mean that another ATM operator can't put another ATM in another part of town. I think this kind of competition will likely drive down the overall cost of buying BTC via ATMs.

I agree that this will likely cause, over time for the premium (or discount when ATMs are buying BTC from you) to decrease to a rate such that ATM operators can earn somewhat of a return on their investment, but would need to have their ATM located in a high volume location in order to ROI. I think this will also cause the spread that traders on LBC charges to decrease as well for the same reasons.

[chennan]

The fee is so high and I won't use this type of ATM rather to go to exchange. I don't think the owner can make any profits. The ATM machine is for display.