Why Bitcoin ATM is taking over Africa despite rejection [See how it works]
September 11, 2020
Bitcoin ATM – According to Statista in a recent report, there are 9,521 Bitcoin ATM around the world as at September 1, 2020.
Apparently, as at (Jun, July and Aug 2020), there were 7,991, 8,503, 8936 respectively which evidently suggests that the figures have been on significant increase.
Before we proceed, let me make it clear that Bitcoin has come to stay In Africa and the world, despite being rejected by Central Banks of this world.
Most African communities, Nigeria inclusive have continued to show cold attitude to Bitcoin, despite their counterparts in other parts of the world saying otherwise.
This may be attributed to information deformity or lack of willingness on our part to embrace change of the 21st century and modern reality.
While we choose to stay in the dark, does that deter a thing about Bitcoin potency and the benefit the world has derived from it and still counting?
Suffix it to say that majority who’ll come across this post are complete Bitcoin dummies, however, there’s no apology about that, yes you heard me.
If you feel bad about this and probably one of them, kindly readjust your antenna in the right direction and embrace the real world hack of the 21st century.
“You never change your life until you step out of your comfort zone; change begins at the end of your comfort zone.
We have to be honest about what we want and take risks rather than lie to ourselves and make excuses to stay in our comfort zone” – Roy T. Bennett.
What is Bitcoin ATM?
This is an Automated Teller Machine that allows holders of credit or debit cards to withdraw Bitcoin.
If you’re conversant with the traditional ATM in town, of course you should, then there’s no much difference.
The only difference is that while the conventional ATM pays in your local currency or cash, Bitcoin ATM allows you to withdraw BTC.
But wait, did you ever know what Bitcoin is?……..
What is Bitcoin?
Bitcoin according to Investopedia is a digital currency created in January 2009 following the housing market crash.
It’s creation follows the idea being set out in a white paper by mysterious and pseudonymous Satoshi Nakamoto.
Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms, being operated by a decentralized authority, unlike the government issued currencies.
Now going by the word digital currency, it means to say that bitcoin is not physical, rather being transmitted via electronic channel.
The birth of Bitcoin has triggered the launch of hundreds of other virtual currencies collectively known as Altcoins.
How Bitcoin works
Referring to Bitcoin as a cryptocurrency means its operations are supported by a source code that operates with highly complex algorithms, which serves to prevent unauthorized duplication or creation of Bitcoin units.
The code underlying principles, known as cryptography are based on advanced mathematical and computer engineering principles.
Advantages of Bitcoin
Bitcoin comes with a handful of advantages that made it the envy of all Central banks and money transfer platforms, among which include;
- Greater liquidity compared to other currencies – This is no doubt the most popular cryptocurrency, by this users retain most of its inherent value when converting to fiat currencies. It thus has a greater liquidity margin than others.
- Widely accepted – A good number of merchants accept Bitcoin as a legal tender and a means of payment. This reduces the use of fiat currencies.
- Faster and easier for international transactions – It’s faster for payment of goods and services internationally. It comes with no international transaction fees unlike transacting with credit and debit cards.
- Low transaction fees – The transaction fee is eliminated or laterally very low, when compared to other digital payment methods.
- It’s fully independent from politics – Given that Bitcoin is not created or owned by any Central bank, it cannot be influenced by any political influence. It decentralized nature makes impossible to be freeze by any government.
The above advantages of bitcoin over conventional payment methods shows that Africa like other continents will let bitcoin stay.
Bitcoin is a decentralized cryptocurrency, this ensures neither the government nor Central banks of nations have influence whatsoever over it.
Transactions are consummated at no fees, this cannot be guaranteed with the likes of master cards, visa cards and other payment channels.
Additionally, remittance to Africa is on the rise, one may not be too ignorant of the bottleneck that surrounds the process, particularly “Money transfer.”
With bitcoin, you’re guaranteed the best rate even, transaction credit happens in minutes and straight to your bitcoin wallet, where you can move it to your local bank account with ease.
The process invariably can be said to be seamless with a robust technology that convey a wonderful user experience.
Taking the part of honor, fiat currencies are being dropped for bitcoin in a rapid speed courtesy of the above advantages, especially on the international money transfers and transaction fees.
Bitcoin has gained momentum since its launch and the trend is not going off pedal with a view to distorting the conventional currency space, which governments of many nations have acknowledged.
Bitcoin ATM in Africa and how it works
Africa has shown great commitment in its advancement by embracing bitcoin despite political under tones that have grid the process.
A latest finding reveals that Africa has a paltry 15 Bitcoin ATMs out of the 9,521 Bitcoin ATMs in the world as at the time of writing this exposition.
The ATMs are currently in 8 African countries as seen below;
- South Africa with the highest number of 7 ATMs
- Ghana with 2 ATMs
- Djibouti and
- Botswana with one each.
Nigeria installed her first ATM courtesy of Blockstale giving to the need to buy and sell bitcoin, this as well ensures people start trusting and transacting with bitcoin here like other parts of the world.
Blockstale is a new Bitcoin ATM startup in Nigeria with the vision of installing about 30 ATMs across the nation shortly.
Blockstale came into being by its CEO Daniel Adekunle, Daniel brought the first and ever existing BTC ATM in Nigeria, having seen there’s non to enhance bitcoin purchase and sales amongst Nigerians.
In his words…
“Despite all the legal uncertainties about cryptocurrencies in Nigeria, Nigerians happen to be the highest crypto traders in Africa.
Blockstale BTM was developed specially to facilitate adoption, transparency and security in Nigeria.”
How BTC ATM works
The essence of an ATM is to enhance transaction and user experience, despite not being too rampant at this time, think you deserve to know a thing or two about it.
ATMs for BTC are of three types even more depending on functionality and what you would like to accomplish with them.
- ATMs that convert your BTC into fiat currencies
- ATMs you can buy bitcoins from and
- ATMs that can perform both functions.
This spec is subject to countries and how inclined bitcoin transactions have been.
With these ATMs, you do not need to visit the exchangers before you could effect any transaction on bitcoin anymore.
BTC withdrawal on ATMs are paid or dispensed into your bitcoin wallet, you may however be required to complete certain identification process.
Bitcoin purchase on ATM
Having arrived at the ATM location;
- Click on the option to buy BTC
- You will be required to scan the QR code of your wallet address via the ATM scanner
- Enter the amount of bitcoin you intend to buy, then insert the cash
- The machine will process your transaction, it typically takes few minutes to complete which after you should check your bitcoin wallet for confirmation of bitcoin credit. You’re done with the transaction apparently.
How to sell bitcoin on ATM
There are specifically default machines for selling bitcoin, you’re expected to make enquiry about this before you proceed.
Click on the sell bitcoin button, follow the onscreen instruction to complete your transaction.
Caution: The method used depends on the ATM in question.
Some machines require a printed QR code or just a bitcoin wallet, some require wallet address code and cash etc.
Just be patient enough to read the instructions before carrying out any transaction.
How to use credit card on BTC ATM
If you intend to use a card on ATM, either you want to buy or sell bitcoin. Either way, kindly follow the below steps;
To purchase bitcoin with your credit card;
- Enter the BTC amount you wish to buy
- Insert your credit card
- Visit your mobile bitcoin wallet and scan the generated QR-code, the coin will be sent to your wallet.
To sell bitcoin using your credit card;
- Tap any buttone to see the screen on the ATM
- Enter the amount you wish to sell
- The machine will display a QR-code that you’ll scan with your mobile wallet
- Click on send to complete the transaction
- The machine will cash out the value of bitcoin being sold.
BTC ATM fees
ATMs charge on average 8-10% fees, this however vary per machine.
How to locate the nearest BTC ATM
The easiest place to locate a bitcoin ATM is Here
Africa is gradually meeting up with the pace on cryptocurrency, the extent of acceptability has further given rise to Bitcoin ATM which has helped solve the problem of exchangers.
The conventional banks, money transfer platforms will need extra effort accompanied by special mirracles to remain in business at the rate bitcoin is holding sway in the nearest future.
Raphael Orji is a freelance writer, professional blogger and a content marketing consultant. I work with small businesses, startups and entrepreneurs in building their brand image with high quality blogging and content marketing strategy.
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