Visited my first Bitcoin ATM in Chicago today

[NEM minnow]

Thanks to the OP for posting.  This looks like it is really cool.  The 5% is a huge turn off for me though. 

In the future, I can imagine there being many more ATMs and many more companies and prices, spreads, and fees getting much tighter. 

I am one of those people that sends money overseas pretty often.  Right now I lose about 5% if I send 1000 USD.  That is exchange rates and bank fees on both sides.   It also takes about a day two to clear. 

In a world where a few bitcoin ATMs were in each city and the total fee was 1%, I would definitely use it.  I could have money overseas from fiat -> bitcoin -> fiat in under an hour. 

Also, 1% is not too hard to imagine.  Lots of companies could eventually be profitable on 1% especially if it is all automated. 

There are lots and lots of people from the third world working in rich countries sending money home.  Many of them illegal or unbanked.  Bitcoin ATMs could very easily have a huge market for international transfers if these ATMs become more common and tighter with fees. 

[wmikrut]

As stated.. this is new technology.
Yes, the fees are a little high.
Yes, I have to wait a little while for transactions to confirm.

That being said, I FULLY support this kind of tech! 

Since I am blessed to be close to one of the two machines in the USA, yes, I am going to use the machine.
I want to support it's operation... I want to see more of them -- in every store and on every (other) corner!

Fees will drop... wait times will improve... but only if there is interest in the technology!

[theblacklist]

Looks like a nice machine. I hope they will be everywhere in the world. But most likely some of the governments wont agree with Bitcoins.

[tzortz]

Cool, thanks for sharing that!

[john641]

Chicago PBS did a story/interview with the owner tonight, pretty good - http://chicagotonight.wttw.com/2014/07/29/bitcoin-banking-rises

[WineAndWhiskey]

This is a two-way machine (can buy and sell Bitcoin) and it is located at Cassava in Chicago: 3338 North Clark Street Chicago IL, 60657. They accept Bitcoin and make amazing empanadas and smoothies if you are able to make a visit.

[zorke]

Thanks to the OP for posting.  This looks like it is really cool.  The 5% is a huge turn off for me though. 

In the future, I can imagine there being many more ATMs and many more companies and prices, spreads, and fees getting much tighter. 

I am one of those people that sends money overseas pretty often.  Right now I lose about 5% if I send 1000 USD.  That is exchange rates and bank fees on both sides.   It also takes about a day two to clear. 

In a world where a few bitcoin ATMs were in each city and the total fee was 1%, I would definitely use it.  I could have money overseas from fiat -> bitcoin -> fiat in under an hour. 

Also, 1% is not too hard to imagine.  Lots of companies could eventually be profitable on 1% especially if it is all automated. 

There are lots and lots of people from the third world working in rich countries sending money home.  Many of them illegal or unbanked.  Bitcoin ATMs could very easily have a huge market for international transfers if these ATMs become more common and tighter with fees. 

I would somewhat doubt that 5% will be somewhat of the norm for people to have to pay when using a bitcoin ATM. The ATM operator would likely need to invest tens of thousands of dollars worth of bitcon and cash fiat to buy/sell bitcon at the ATM. This does not even cover the cost of the ATM itself. I would imagine the ATM operator needing to pay some kind of rent/royalty to the store the ATM is located in as well. They need to make some kind of return on these investments.

[iamahappyminer]

What information/id/bioscan requirements are there?

[CoinATMRadar]

The ATM operator would likely need to invest tens of thousands of dollars worth of bitcon and cash fiat to buy/sell bitcon at the ATM. This does not even cover the cost of the ATM itself. I would imagine the ATM operator needing to pay some kind of rent/royalty to the store the ATM is located in as well. They need to make some kind of return on these investments.

That makes sense. Current average rate is at 6%. http://coinatmradar.com/blog/bitcoin-atm-fees-analytics/
And this is what the market defines, I also doubt it will ever fall below 3% even due to increased competition and increase volumes in the ATM (e.g. mass adoption). The only AML/KYC probably eat not less than 1% and then there are cash logistics, rent, purchase of ATM, support, fees to the manufacturers, licensing etc. So, 1% in fees total for using Bitcoin ATM is just illusion here.

[Jamie_Boulder]

Glad to see your experience was a positive one...mine defiantly wasn't lol but then again I hold the fault of that to the machine.

[Jeramom]

What information/id/bioscan requirements are there?

According to their website, if you're transacting less than $3,000 worth of BTC, it would appear they only require SMS verification, which isn't ridiculous, it's easy to bypass if you don't have a phone or don't want to use your own.
However, they also state here under the "KYC Compliance" tab, that additional verification options can enabled and configured by the operator.
So basically it depends on the decisions of whoever owns the ATM.

[wasserman99]

What information/id/bioscan requirements are there?

According to their website, if you're transacting less than $3,000 worth of BTC, it would appear they only require SMS verification, which isn't ridiculous, it's easy to bypass if you don't have a phone or don't want to use your own.
However, they also state here under the "KYC Compliance" tab, that additional verification options can enabled and configured by the operator.
So basically it depends on the decisions of whoever owns the ATM.

This is essentially true for any bitcoin ATM. It is up to the operator to determine how what KYC/AML steps they wish to take. If they do not use enough verifications then they would potentially be liable for not fully complying with the law, but it is their decision.

I would think the OP can give some insight as to what KYC steps were taken in his situation.

[MGGB]

I don't understand why you'd do this since the fees are so extortionate... it just doesn't make sense...

For new bitcoiners it is unbelievably inconvenient to buy bitcoin. I live in Canada and i have scanned my ID, jumped through hoops, linked bank accounts, verified phone numbers you name it. Still, to this day i have never purchased bitcoin from an actual company.  I would use a BTM if i was in need of bitcoin that same day.

Have you tried VOS, getting verified involved a few hoops, but interact deposits are available, I can get BTC in about an hour with minimal fees! Certainly no 5%, but I will probably still try the new BTM that just down the road when I get a chance  It looks the same as the one in the OP!

[Ondago]

I've never used one of these atms. Can you just buy btc or does it dispense cash as well?

[bitkilo]

What information/id/bioscan requirements are there?

According to their website, if you're transacting less than $3,000 worth of BTC, it would appear they only require SMS verification, which isn't ridiculous, it's easy to bypass if you don't have a phone or don't want to use your own.
However, they also state here under the "KYC Compliance" tab, that additional verification options can enabled and configured by the operator.
So basically it depends on the decisions of whoever owns the ATM.

This is true in Australia, operators of the Lamassu brand bitcoin atm can configure there machine for id scan ect if required by government regulations in the future.
At the moment its not needed for small transactions.

[AtheistAKASaneBrain]

Why do some ATM machines require that you do ridiculous proof of identity tests such as: ID scan, fingerprint scan.. what the hell?
Why others only require SMS?

If you put too much hassle in the machines to do the transactions, it will all fail.

[adub]

Why do some ATM machines require that you do ridiculous proof of identity tests such as: ID scan, fingerprint scan.. what the hell?
Why others only require SMS?

If you put too much hassle in the machines to do the transactions, it will all fail.

It depends on what country the ATMs are in. I've blogged about it at the link below...

http://blog.atlantabitcoin.com/us-bitcoin-atm-regulation-102/

Some operators don’t require full ID at small purchase levels.

If an operator wants to risk it and go with a low friction AML strategy, they are likely to do so without being banked. Banks are going to want to see an operator’s AML policy before choosing to do business with them. If they see your policy as weak, you don’t get a bank account. Without a bank account, you can’t wire dollars to the exchange where you replenish your inventory of bitcoins. That means you’re limiting your access to bitcoin inventory which usually means higher prices.

[canary]

Thanks for sharing it, great experience! 

[cryptomad]

This looks amazing,I wish here in the uk we had one but the closest is in london,i might have to visit the one in london very soon

[Barnikle]

It's really nice to hear from someone who has used one of these and had an easy time with it. I was someone that had read a lot about these being a pain to use and very daunting but it seems your experience was the complete opposite. I am still yet to use one of these however I now know when I get the chance not to be as worried, it seems pretty easy!

I think anyone that finds it daunting doesn't know how to operate a TV set, much less an ATM.
That is easy as cake.

Not sure why it needs a phone number when you are selling bitcoin to it.