Be it check cashing or convenience stores- Bitcoin ATMS are starting to mushroom across the Twin Cities of Minneapolis and Saint Paul. While they have the appearance of cash-based ATMs, yet at closer look you would get to know that these are not the same! These crypto ATMs have been installed by entrepreneurs to profit from customers and provide them with an efficient and convenient way to trade in digital currency.
According to experts in the crypto industry, buying the leading cryptocurrency, Bitcoin, at a corner store can satisfy multiple needs. Bill Repasky, lawyer at Frost Brown Todd (a Louisville law firm that provides legal counselling to cryptocurrency ATM operators), added:
“We are seeing a proliferation of virtual currency ATMs across America because some buyers or sellers like the convenience of a kiosk. It allows for a more immediate impulse buy of a virtual currency versus going on to an exchange or online website to buy or sell.”
As per Julia Miller, the Deputy Director of Communications at the Minnesota Department of Commerce, the city of Minnesota does not have any laws governing crypto ATMs. This could be, perhaps, the reason why almost a dozen Bitcoin ATMs have popped up in the Twin Cities in the last year. Two companies, in general, appear to be competing for crypto customers- respectively, Coin Cloud from Las vegas, and Digital Mint from Chicago.
Even though there are thousands of digital currencies in the market currently, Bitcoin is the oldest and the most well-known cryptocurrency in the world. 2017 witnessed Bitcoin’s price skyrocketing to nearly USD 20,000. The traditional way of trading in Bitcoin involves following a complex process of finding a cryptocurrency exchange and consequently linking it to your bank account. Bitcoins are thus stored in a digital wallet.
Digital Mint and Coin Cloud, both require the users to own a crypto wallet, a government issued identity card, as well as a mobile phone number. Coin Cloud allows users to trade in whole Bitcoins or even fractions with worth up to USD 10,000 per day. The transaction fees ranges from 5 to 8 percent dependent on the volatility in the price of Bitcoin. Digital Mint places its crypto ATMs at check cashing stores and they allow the users to only buy Bitcoins. Users can purchase up to USD 20,000 worth of Bitcoins, and the transaction fees ranges from 7 to 10 per cent.