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It’s incredible to think that the list of products and services you can buy with Bitcoin is growing hugely. You can buy things like insurance, event tickets, luxury watches, and so much more.

Many people prefer to store and buy cryptos like Bitcoin as they see them as a safer and more independent option than traditional fiat currency. After you find a Bitcoin ATM, you can easily just put some dollars into the machine and buy some crypto, or you can withdraw fiat currency by selling crypto.

In this guide, we’re going to explore the pros and cons of both cryptocurrencies and fiat currencies. We’ll then talk about Bitcoin ATMs and how you can find one near you.

Let’s get started.

Crypto Pros

Cryptos can fluctuate in value a fair amount but many people believe that their trajectory is positive in the long run. Plus, there are many stable coins out there that you can get involved with that are designed not as volatile as traditional cryptos.

With cryptocurrencies, you get a form of tender that is independent of the banking system. And as you may have noticed in recent times, fiat currencies can fluctuate a lot as well.

Cryptos do not need a central bank, nor does a government set an interest rate or quantitative easing to control them. Many cryptos run totally independently from any human control. Instead, they run on an algorithm and the power the crypto platform needs to handle transactions comes from a network of computers that mine cryptos.

You get transaction freedom with cryptocurrencies, as no one can actually control your transactions. Furthermore, due to blockchain technology and high-level encryption, cryptos are generally a very secure currency form.

As well, many cryptos like Bitcoin or Ethereum offer you easy transactions. The idea is that many cryptos are designed to work better than fiat currencies.

Crypto Cons

The downside for some people is that it may take some time to understand what cryptocurrencies are all about and how they function. However, if it is to be inevitable that cryptos will dominate the currency landscape in the future, then it is worth taking the time to learn about them now.

Of course, as we’ve already mentioned, the prices of cryptocurrencies can fluctuate and so be seen as volatile. This however may be a short-term phenomenon.

There are also a lot of crypto scams these days. That’s not to say that there aren’t plenty of standard currency scams out there.

With cryptos, you need a crypto wallet that comes with a seed phrase that you use to unlock. While this may be a great way to ensure the safety of your cryptocurrencies, if you forget your seed phrase, you might end up being locked out of your wallet forever! There are, however, specialists who can sometimes unlock valuable wallets.

Fiat Currency Pros

The main advantage of fiat currency is that a government can better control its money’s value and supply. People can also see this as a disadvantage from an outsider’s perspective if governments mismanage their money.

The way that governments manage their currency is called monetary policy. As much as they may want to manage their own currency and monetary system, they may also conduct monetary policy in an effort to stabilize global markets. This has become more common in recent times due to globalization.

Furthermore, some may see fractional reserve banking as a positive thing. This is when banks can multiply the amounts of money they have available to them to allow for borrowing. Also, in general, fiat currency is very easy to use and people can use it in a vast amount of ways, more so than cryptos, currently.

Fiat Currency Cons

One of the biggest dangers associated with fiat currency is hyperinflation. This is when general prices rise to levels that are hard to keep up with and manage in an economy. The consensus is that hyperinflation is real in an economy when inflation hits 50% or more a month.

The problem with fiat currency, too, is that it has yet to be proven to be a foolproof way of protecting economies. As we have seen in the 2008 financial crisis, and previous global shocks in the financial system, governments can try but fail to keep their economies stable using monetary policy in a way that they would want to.

The reason why the 2008 financial crisis happened is that in some way or another the markets formed an economic bubble that eventually popped. Economic bubbles are a danger associated with fiat currencies.

What Is a Bitcoin ATM?

So after reading and refreshing yourself on the main types of currencies that exist today, you may be ready to start using crypto like Bitcoin or Ethereum. After all, people are using such currencies more and more these days to the point where even Bitcoin ATMs are springing up all over the country,

Bitcoin ATMs are essentially crypto kiosks or ATMs where you can buy and exchange cryptocurrencies. For instance, you can go to a Bitcoin ATM and use your debit or credit card to buy popular cryptocurrencies that the ATM offers. Or, you can sell your crypto for instant cash, which is convenient if you want to use your crypto wallet as a sort of bank account that you use for daily purchases.

How Do Bitcoin ATMs Work?

If you deposit cash into a Bitcoin ATM with the aim of buying crypto, the ATM will access the relevant crypto blockchain. Your transaction will be processed on the blockchain, which is a digital ledger of the cryptocurrency’s financial transactions.

To connect your wallet to the ATM, you will often use a QR code. This makes Bitcoin ATMs pretty fast and efficient when it comes to processing transactions, much like an ordinary ATM.

In other cases, a Bitcoin ATM may have a dedicated app that you use to carry out transactions and withdrawals. They may also use a voucher-based system when they wish to purchase any cryptos, which should be pretty straightforward.

Keep in mind that all crypto ATMs won’t offer two-way transactions. Some will only let you buy cryptos but not sell them and withdraw cash while others will.

How to Find a Bitcoin ATM

The majority of Bitcoin ATMs are in the U.S., however, there are many around the world to discover. There are numerous apps that track the availability of Bitcoin and crypto ATMs around the world and in the U.S that you can search for and download online. You may also go directly to crypto ATM creator websites to find a Bitcoin ATM near you.

For example, here is a Bitcoin ATM guide for the Chicago, Illinois region. It’s offered by Byte Federal, a leading crypto ATM creator. As you will see on their map, there are plenty of Bitcoin ATMs spread out across the region!

According to Investopedia, you might be surprised that there are around 34,000 crypto ATMs in the U.S. right now. And that number is surely growing with the increasing popularity of using cryptos over traditional fiat currency.

Interestingly, Investopedia reports that New York has very few crypto ATMs (around 200 or so). While Texas is leading the way with the crypto ATM revolution with over 4,000 ATMs and states like California and Florida are catching up with their numbers in the mid-3,000 range.

Locations Where Crypto ATMs Are Common

You will find most crypto ATMs in places with a lot of foot traffic. Such places can include:

  • Shopping centers
  • Airports
  • Inside large retail stores
  • Taverns
  • Restaurants

You may also come across a lot of crypto ATMs in gas stations these days. Plus, many tourist hotspots in built-up areas may have crypto ATMs, or soon will!

Main Advantages of Crypto ATMs

One of the main advantages of a two-way crypto ATM is that you can use your crypto wallet as you would a bank account to withdraw fiat currency. Instead of withdrawing money, you first sell your crypto at the going rate for dollars and then withdraw those dollars. They may be useful in other countries when you wish to get some local currency too.

If you come across a one-way or two-way ATM and feel the urge to buy some crypto, the great thing is that the time it takes you to buy your crypto is rapid. You can expect to buy crypto from such a machine in a couple of minutes.

The process is very much like when you order and pay for something in a fast-food restaurant on a digital screen. Everything seems user-friendly, quick, and easy.

Another advantage of using a Bitcoin or crypto ATM is that the process may even be more private than a traditional ATM where you have to enter a PIN number. In some cases, a crypto ATM may ask you for your phone number, and you could choose to use a burner phone for more privacy.

Then you have to consider the general convenience of crypto ATMs since you can use them 24 hours a day. For instance, you might be running low on cash and someone helps you by sending you some cryptos. All you have to do is head down to your nearest two-way crypto ATM, sell your cryptos and get some dollars out at any time in the day or night.

Potential Disadvantages With Bitcoin ATMs

Like almost everything in this world, there may be some potential risks and disadvantages associated with Bitcoin and crypto ATMs. One disadvantage can be that crypto ATMs have high fees you have to pay to use their services. However, this may be temporary as more and more machines pop up and compete with each other along with more people using them.

As well, as mentioned, certain states have very few crypto ATMs like New York, surprisingly. Other states like Montana, North Dakota, and Wyoming have less than 100. Alaska has the least crypto ATMs with just 11. All these figures come from the Investopedia link we gave you earlier where we mentioned there are around 34,000 crypto ATMs in the U.S. right now.

Another problem with crypto ATMs is you might not have any insurance with them. Also, there may be transaction limits.

Will Crypto ATMs Become Popular?

Well, we can look at the market size of the crypto ATM software market in 2021 which was $245.3 Million, and what projected growth looks like. The projected growth according to a Global news wire article is a CAGR of 54.2% from 2021 to 2030!

It’s clear that massive investment is going into this initiative. So we can assume that we are going to see many more crypto ATMs appearing in the coming years.

It may be because of the convenience that they offer to people who are increasingly interested in DeFi technology, cryptocurrencies, and blockchain technology. The rise of crypto ATMs may also be representative of a wider change in the way the world thinks about money.

Cryptocurrencies have given us way more options in terms of how we keep and can spend our money. They allow for more privacy than fiat options and may be the driving force behind the rise of the Metaverse.

Will Cryptocurrencies Replace Fiat Money?

There are many who think cryptocurrencies will replace government-issued money. However, if this were the case, how would governments have any control or monetary policy anymore?

One thing is for sure, many governments are seriously looking into creating government-backed digital currencies. This is clearly in response to the rise of the crypto world. So it may be the case that in a few years you’ll be buying and selling a digital form of the U.S. dollar, which may be called the U.S. CBDC (central bank digital currency), or something along those lines.

Finding a Bitcoin ATM Is Easy

If you want to find a Bitcoin ATM nearby, all you have to do is check out some of the top ATM makers and they’ll tell you on their website, such as Byte Federal. Or, you can download apps that will let you know where to find one.

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About Post Author

Sohaib Ahmad

I'm a freelance writer and I would like to offer you my services as a guest blogger for your blog. If you are looking for a guest posting and link insertion service, I am your go-to person! I am professional and will provide you with the best results. I have been in the field for so long that I am an expert in the field. Let me know if you need a link-building expert for your business. I am happy to help! Cheers!
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I'm a freelance writer and I would like to offer you my services as a guest blogger for your blog. If you are looking for a guest posting and link insertion service, I am your go-to person! I am professional and will provide you with the best results. I have been in the field for so long that I am an expert in the field. Let me know if you need a link-building expert for your business. I am happy to help! Cheers!

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