From Idea to Lucrative Side Hustle — Why Bitcoin ATMs Are the Future of Currency Exchange

Lucrative Side Hustle

Ten years ago, the world welcomed the first Bitcoin ATM at Waves Coffee House in downtown Vancouver, British Columbia.

Since then, Bitcoin ATMs have grown exponentially. According to Coin ATM Radar, there are currently 37,056 Bitcoin ATMs worldwide, and 31,006 in the US alone. Despite the popularity of online exchanges, these ATMs continue to pop up in places like gas stations, shopping malls, and grocery stores.

Bitcoin ATMs are crucial to accelerating cryptocurrency adoption and generating revenue for retailers that host them. They also present a lucrative opportunity to make money – estimates put the Bitcoin ATM market at $16.85 billion by 2033.

The Importance of Bitcoin ATMs

Bitcoin ATMs are crucial to the crypto economy. They serve as an entry point for fiat (dollars) into the crypto ecosystem, accelerating cryptocurrency adoption and providing access to financial services to underbanked or underbanked consumers. Some Bitcoin ATMs offer the option to sell cryptocurrencies for cash, acting as fiat outlets and providing instant access to funds.

Bitcoin ATMs are neighborhood hotspots for access to cryptocurrencies. People can buy cryptocurrencies while filling up their gas tank or buying food. The "Bitcoin for sale here" sign creates curiosity about this new asset class and generates interest in learning more about cryptocurrencies.

Digital currencies like Bitcoin were developed to create a new type of electronic money, and Bitcoin ATMs allow people to purchase this new currency and use it for digital payments, money transfers, or as a store of value. Imagine if someone made traditional assets like stocks available to purchase fractional amounts at physical locations in exchange for cash. Bitcoin ATMs represent a financial opportunity because Bitcoin's deflationary savings are phenomenal.

Bitcoin ATM Use Cases

In 2014, Bitcoin was worth only a few hundred dollars. Those who bought it from the first licensed Bitcoin ATM in the US, which launched in Seattle, Washington, that same year, potentially got a significant boost, as Bitcoin is now trading at close to $70,000 per coin.

The mother sent money to her daughter who was studying abroad in Italy and needed the money quickly to get her car fixed. She found a mechanic, but didn’t have enough money to pay him. The mechanic accepted Bitcoin, so she asked her mother to use a Bitcoin ATM to send the money. The mechanic received the money in a matter of minutes.

Expats in the US can purchase USDC in cash from an ATM to send money home, where the recipient can receive the money in their local fiat currency.

Bitcoin ATM Capabilities

Bitcoin ATMs are a great business opportunity for those who have a physical retail store. Retailers can earn rent for the ATMs they install and drive additional traffic to those stores. Optional agreements allow retailers to receive a percentage of each transaction fee. Retailers should only work with licensed, insured operators and have adequate AML policies and procedures in place.

The most important benefit of installing a Bitcoin ATM is attracting customers to retail stores. Sites like Coin ATM Radar list ATM locations, which is virtually free advertising. Bitcoin ATMs can also be found using Google Maps and are often listed by the hosting company. Customers who buy cryptocurrency from an ATM are more likely to return and purchase other products. In this way, they create a mutually beneficial partnership between the retailer and the Bitcoin ATM operator.

The Future of Bitcoin ATMs

The crypto winter has led to consolidation in the bitcoin ATM industry and reduced the number of bitcoin ATM operators to a few major players by early 2024. However, as bitcoin ATM installation consolidation begins to pick up again and analysts forecast a bullish trend for cryptocurrencies in 2024, bitcoin ATMs will likely remain a key pillar of the crypto economy – but what will happen in five to ten years?

Despite the rapid adoption of digital payment methods, cash remains the most used method of payment in the United States. Over 18% of the total