You probably picture high-tech trading floors when you think of buying or selling cryptocurrencies like Bitcoin or Ethereum.
Perhaps you are thinking about cutting-edge mobile applications. What most likely does not cross your mind is the presence of automated teller machines (ATMs) at a gas station convenience store or payday-loan shop.
However, it is how an increasing number of individuals from working-class backgrounds are becoming familiar with cryptocurrency.
In Los Angeles, there are over 2,000 cryptocurrency ATMs, the majority of which deal in Bitcoin.
People are able to swap dollars for digital money using their platform, however, the exchange comes at a cost of around 15%.
Anas Elshahawy, who worked as a clerk at a convenience shop located in the Crenshaw District, said, “This is something weird.” He estimates that each week, around six customers utilize the Bitcoin ATM at his shop.
What Are the Functions of ATMs?
It is possible to transfer money internationally via crypto ATMs, most notably to El Salvador, which just adopted Bitcoin as its national currency. The industry claims that ATMs make it possible for anyone to trade digital currency, even if they do not have bank accounts.
According to Seth Sattler, executive director of the Cryptocurrency Compliance Cooperative, an industry group, “We’re well aware that there is the belief that only criminals use it”. He concludes that they are making concerted efforts to prevent that.
According to Hays at Americans for Financial Reform, the vast majority of transactions using cryptocurrencies may not involve anything that may be construed as illegal. However, he stresses the point that digital currencies, which are, for the most part, unregulated, are often more akin to gambling than an investment.
“Putting your money into a Bitcoin ATM and hoping that you’ll see the line go up and make bank, it’s akin to walking into a casino,” he adds.
