What are Bitcoin ATMs (BTMs) and why are they not everywhere? - Crypto in Plain English - Episode 236 - by cryptohunt.it

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What are Bitcoin ATMs and why is it likely that you have never seen one in your life?

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English.

Bitcoin ATMs are machines you can withdraw cash from, and often deposit it as well. But unlike traditional ATMs, they accept Bitcoin and - despite the slightly misleading name - often other crypto.

The idea is pretty simple: Send a certain amount of Bitcoin to the ATM to withdraw cash, or deposit cash to be sent to your Bitcoin address.

Sounds useful, right? So why are there only 25,000 of those worldwide despite the crypto craze of the last few years? The answer is: Criminals.

Governments aim to prevent money laundry, and unfortunately those Bitcoin ATMs are excellent for that. Here is how it works: Say you got paid for illegal activities, and want to deposit that cash somewhere. Traditional banks will need you to identify yourself before you can do that, and the money becomes traceable.

With Bitcoin ATMs, you deposit to a blockchain wallet, which will be anonymous as long as nobody knows who’s behind it.

And that’s why you have likely never seen one in the wild: Most local and federal governments don’t allow them to operate unless the user is identifiable, which makes the process so much harder that most people won’t bother using them.

But keep your eyes open - there are more and more out there regardless. And if we peaked your curiosity, get closer and inspect how they operate.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.