Bitcoin ATM facts for kids

A Bitcoin ATM is a special machine where you can buy or sometimes sell digital money like Bitcoin and other cryptocurrencies. It works a bit like a regular ATM, but instead of connecting to your bank account, it connects you to the world of digital currency. You can usually use cash or a debit card to make your transactions.

Some Bitcoin ATMs are "one-way," meaning you can only buy digital currency. Others are "two-way," letting you both buy and sell. About 30% of these machines around the world are two-way. These ATMs are connected to the internet. They help you get digital money into your Bitcoin wallet or an exchange. While they look like regular ATMs, they don't need a bank account. Buying or selling digital money at these machines usually has a fee. These fees can be anywhere from 7% to 25%, but they are often around 10-20%.

History of Bitcoin ATMs

The very first public Bitcoin ATM opened on October 29, 2013. It was a machine called Robocoin and it was placed in a coffee shop in Vancouver, Canada. This was a big step for digital money! However, the company Robocoin stopped working in 2015.

The first Bitcoin ATM in the United States was set up on February 18, 2014. It was in a cigar bar in Albuquerque, New Mexico. But it was only there for about a month. Soon after, on December 8, 2013, Europe got its first Bitcoin ATM in Bratislava, Slovakia.

Bitcoin ATMs in Canada

Canada was the first country to create rules for cryptocurrencies in 2014. This meant they started to think about how to manage digital money. In 2020, businesses that deal with digital currencies became known as "Money Services Businesses." This means they have to follow certain rules.

In 2018, the Canada Revenue Agency (CRA) looked into Bitcoin ATMs. They wanted to see if people were following tax laws when using them. They found that the number of Bitcoin ATMs in Canada grew by 20% in just two months! By 2019, Vancouver, where the first ATM was, even thought about banning these machines. This was because of concerns about how the machines were being used.

Bitcoin ATMs in the United States

The number of Bitcoin ATMs in the United States has grown a lot. In January 2018, there were over 2,342 Bitcoin ATMs. Some small shop owners even earned money by letting these machines be placed in their stores. By August 2020, this number had jumped to over 9,000!

The fees for using these ATMs in the US are usually around 16%. This is higher than online transaction fees, which are about 7.5%. Some of the Bitcoin ATMs in the US come from other countries. For example, a company from the Czech Republic called General Bytes has placed its machines in cities like Las Vegas.

Images for kids

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  One-Way Cryptocurrency ATM in Los Angeles, California. This machine lets users only buy Bitcoin and other cryptocurrencies with cash.

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  A Bitcoin ATM in Sandton City, South Africa.