It is curious how the psychology of a newcomer to Bitcoin works. When the price is low – and that is always relative – those who eventually buy in, are skeptical. Then prices start rising, so they start doing their research and asking their friends. They eventually buy at a much higher price with the hope that the price will go up even more.
That dynamic has an unintended yet positive effect: Bitcoin ATM propagation. The more people come into Bitcoin, the more price rises, the more Bitcoin ATMs propagate, laying the foundation for the next big onboarding.
Bitcoin ATM Propagation Flies in the Face of the Cashless Movement
The fact that Bitcoin ATM propagation is up according to the data presented by Bitcoin ATM Radar is interesting given the developing attitude against cash. Many countries are moving to restrict or even eliminate cash, which would make Bitcoin ATMs useless. Nevertheless, there are more and more Bitcoin ATMs out there and companies are poised to add even more now that Bitcoin prices are on the move once again.
Do New Bitcoin Users Like ATMs?
With more Bitcoin ATMs being added, it seems that the general public still finds cash useful to a certain degree, which is a relief. It also shows that despite the fees, a Bitcoin ATM might be a friendlier onboarding tool for people who are interested in Bitcoin, than exchanges. Here are some reasons why that might be the case:
- New users don’t know the exchanges. Therefore, it is difficult to trust them with a payment.
- Bitcoin ATMs allow people to buy small amounts of Bitcoin without getting exposed to a lot of risk.
- Buying small amounts also allows users to check reliability.
- A Bitcoin ATM that is within a store or in a shopping mall, must have some kind of business deal with the establishment Therefore, people might perceive them as more reachable in case something goes wrong.
- ATMs are familiar. Many people know how to use them already, which might reduce the risk of making mistakes.
- Bitcoin ATM availability also means newcomers can cash out just as easily as they bought in.
- The ATM is also a great tool for segments of the population that are used to physical money more than digital money.
- In countries in which cash is more widely used, a Bitcoin ATM is good because it increases the tangible availability of Bitcoin holdings without the need of a bank.
- Bitcoin ATMs often don’t require KYC.
- Cash is a great way for newcomers to divorce themselves from holding Bitcoin, which still has many stigmas attached to it.
Prices Will Go Up and So Will Bitcoin ATM Usage
Given all these advantages, it is possible to see how useful Bitcoin ATMs can be. There is even an overlap in terms of the reasons why newcomers will use a Bitcoin ATM and the reasons why a seasoned Bitcoin user would like to use a Bitcoin ATM. This is why Bitcoin ATMs are likely to continue propagating despite the fees some of them charge. Moreover, as more Bitcoin ATMs pop up, those fees are bound to come down thanks to increased competition. Bitcoin prices are only accelerating that propagation process because prices convince more people to give cryptocurrency a chance, and Bitcoin ATMs are incredibly convenient for anyone who wants to do so.