In this interview Cory Capaldi, the CEO of TheCoinBros will discuss many frequently asked questions and even teach you how to avoid the most common Bitcoin ATM scams.
In the beginning, Cory is talking about how it all started and how he was the first one to introduce the Bitcoin ATM in San Joaquin County. He also talks about the plans they have for financing education as a philanthropic way to get back to the community. He also mentions some super-secret plans for the future, but he couldn’t say too much about it… we’ll see if they turn out as they planned.
Later on, when asked what are things that most people don’t know about Bitcoin ATMs, he emphasized two points. First of all, they don’t know how they work, and secondly, they don’t know why do they exist.
After he answered the known question, why would someone choose to go to Bitcoin ATM as opposed to exchange? First, he talked about how exchanges have an on-boarding process that sometimes takes up to two weeks. Also, you need to link your bank account in order to verify which is known to result in bank blocking your account. In the end, there is a risk of storing your crypto directly on the exchange while Bitcoin ATMs allow you to use the wallet that you want. To summarize, the convenience factor is crucial here.
Cory also talked about his duties being the ATM owner, and he said that liquidity is the main task he needs to tackle. He has to constantly buy from OTC markets and other sources which is a big challenge. Basically it is a constant struggle from customers and liquidity to people stealing ATM’s or trying to rip you off. He even compared his current job to being a paramedic, saying that it is much crazier.
When explaining the process of using the Bitcoin ATM for the first time, he said that the important thing is to do your own due diligence and select a wallet most suitable for you, even though he recommends an online wallet. After that, it’s pretty simple just scan your wallet, complete three or four-step process and you’re done.
Interesting part of the interview is when Cory was asked why are the fees on ATMs so high? So, he explained that there are a lot of expenses that people are probably not aware of. So he broke it down like this:
- The starting costs are heavy. For example, the General Bytes machines that he uses cost $4,000 for a one-way and $9,000 for a two-way machine which is a lot to handle at the beginning.
- Another thing you need to do is buy Bitcoin (which is subject to fluctuations) and store it in a safe wallet.
- You need to pay for licenses and a compliance officer.
- There are also other employees that you need to pay what they are worth if you want to provide a quality service.
- You have to pay the rent for each and every location
- You have to pay for marketing costs so everyone is aware of your ATMs location
- There are also banking fees included
- Armored car pickup is expensive too
These are just some of the expenses that BItcoin ATM owners are faced with, therefore the higher fees. TheCoinBros have their fee at 10% which is reasonable having in mind that some operators have it as high as 45%.
They also mentioned how some countries like Zimbabwe, have government issues so the people are forced to pay sometimes even double the value of Bitcoin because their national currency is devaluing.
Another interesting topic they revised is related to Bitcoin ATM scams. Cory listed an example on how the scammers are getting innovative and convincing where most of the people would believe their story, since they are posing as police and already have all your personal information. He proudly says that they managed to successfully battle the scammers by educating the store owners to recognize the scam prior to realization and implementing numerous warnings that you need to read before you use the ATM. He also talks about the life threats he got from angry scammers after successful prevention.
In the end of the interview he speaks about how Bitcoin ATMs are crucial for overall crypto adoption since they provide a physical presence which is really helping to change the mindset of potential users and positioning the crypto as an actual real thing instead of some magic internet money.
To summarize, even though Bitcoin ATMs are a bit more expensive than the exchange (justified by numerous accompanying expenses), their convenience and security makes up for it, and also their physical presence which makes them a crucial part of overall cryptocurrency adoption.