How different are Bitcoin ATMs from traditional bank ATMs?
- November 20, 2017
With growing popularity of Bitcoin currency, Bitcoin Kiosks are coming up in many places around the globe, making it easy for users to carry out transactions. As per recent data, there are around 1240 Bitcoin ATMs around the globe. This figure is increasing every year at a fast pace. Many individuals are seen comparing it to standard bank ATMs, but the number of Bank ATM is more than 2 million around the globe.
Are these ATMs comparable?
Bitcoin currency is still at its nascent stage, and it is not right to compare this new currency system with traditional banking processes. Even though the growth and popularity of this new currency seem impressive, it has a long way to go before you can compare it with traditional banking systems. How can it be compared when Bank ATMs are here for more than 45 years now? How can we compare it with a new concept of digital currency which was introduced 8 years ago? Interestingly Bitcoin ATM has introduced in the market couple of years ago. It will be impractical to compare Bitcoin ATM with traditional Bank ATM at this point of time.
Bank ATM Details
The history of bank ATMs goes back in the year 1960 when the first patent was filed, and experimental ATM was installed in 1961. Within 6 months’ time, the ATM was removed due to lack of use or demand. The ATM model was named Bankograph which accepted cash, coins, and cheques but didn’t have cash dispensing features. At the end of 1960 there were many parallel efforts in various countries, and finally, traditional ATMs started appearing. The first bank ATM installation with a magnetic card was introduced around 1969. There were several other ATM installations before, but they never used a magnetic card.
Over the period development of bank, ATMs accelerated in many parts of the world, and it was done by shared ATM networks. Under this system customer of one particular bank could use ATM from another bank to dispense cash at ease. This was of great help for many customers, and since then the use of ATMs started increasing in many parts of the globe. But with Bitcoin, we don’t need such shared networks. The reason being decentralized concept of Bitcoin making it easy for users.
Bitcoin ATM Growth
Though there is growing demand for this new digital currency, in some parts it is becoming quite a challenge for consumers to use it. Many Bitcoin exchanges are coming up in the market, and they are looking to implement more commonly used payment systems such as credit or debit cards. Many enthusiasts feel that there should be more Bitcoin ATMs around the world for fast and hassle free transaction. Compared to previous year there are many new Bitcoin ATM kiosks seen coming up, and it is something that will excite new users. These terminals are definitely making it easy for Bitcoin users to carry out exchanges as per ease.
Traditional bank ATMs took 9 years to reach 10,000 ATMs, whereas in the last couple of years we have 1237 Bitcoin ATMs installed all around the globe. It will be unfair to compare the growth of these two separate systems at this point, but it is undoubtedly one interesting thing to follow some year down the line. We need to give few more years to this all new currency system before it can be compared to traditional banking systems. Till then, enjoy this new digital currency and use it for all your daily expenses. Are you using it on a regular basis?