Although the first Bitcoin ATMs began surfacing around a decade back, it is only recently that the number of these machines has multiplied like never before. With people all over the world swarming to invest in this cryptocurrency, there naturally arose the need for easier yet reliable means to help people conduct transactions. Bitcoin ATM offer people the best of convenience and security to withdraw or deposit Bitcoins.

1. The Value of Disruption
'Great thingsare notdone by impulse,butbyaseriesof small thingsbroughttogether.'VincentVan
Gough
Like the oldadage that it was notthe prospectorsbutthose sellingthempickaxesandshovelsthat
prosperedinthe GoldrushBitcoin'svalue mightbe seentolie notsomuchinits speculativevalue butin
the disruptive innovationitbrings.
At Bitcoin'sheartliesthe blockchain,anonline,decentralised,user-managedledgerthatrecordsall
transactions BitcoinATM. The blockchainallowsforsecure andanonymouspeertopeertransfersand
has the potential tocircumventtraditional middlemenanddeliversavingsof time andmoneyforthe
customer.
Remittancesare a platformthatthe blockchainhasthe potential todisrupt,the opportunitytoreturn
value tothe customerbeingconsiderable.The WorldBankestimatedglobal remittancesin2011 totalled
over$500bn, approximately$400bnof thisgoingto developingcountries.Remittancesfromthe UK
were estimatedat$23.1bn makingit the thirdlargestsource afterthe US ($120bn) and Canada
($23.3bn). In the same yearIndiawas the top recipient,receiving $63.8bnfollowedbyChina($40.48bn),
Mexico($23.59bn), Philippines($22.97bn) and Nigeria($20.62bn).
Remittance platformsare amixture of the formal andinformal,rangingfromcashtransportedacross
bordersbyfriendsandfamilyandhawalabrokersto banksand moneytransferoperators(MTO's).
These platformsare byno meansfool proof andare oftenloadedwithinefficiency BitcoinATMNear
Me.Bank transfersare not universal intheircoverage,Barclays,the lastmajorUK bankproviding
remittance servicestoSomaliaannouncedlastyearitsintenttoshutdownthe accounts of those money
transferbusinessesregisteredwithitdue toconcernsovermoneylaunderingandterroristfinancing.
Thisimpactedonthe $162m sentfrom the UK to Somaliaeachyear,the majorityof whichgoesto
coveringbasichouseholdexpensessuchasfood,educationandmedicine.ManyAfricancountries also
restrictremittancesbeingpaidintobanksandinsteadcontractwithMTO's to operate ontheirbehalf
creatinga restrictedmarketwhichdoesnotbenefitthe customer.
The cost of remittancesviaaMTO fromthe UK variesperdestinationcountry,typically6- 11% of the
total amountgoingto the provider.Inanindustrywhere transactionsfromhostcountriestotal
hundredsof millionsof poundsperannumthe opportunitiestoimprove the welfare of recipientsby
reducingtransactioncostsviaa disruptive platformare significant.
So,where doesthe blockchainfeature?Digital walletsenabledbythe blockchainallow almost
instantaneouspeertopeerBitcoin/digitalcurrencytransactionsatlittle ornocost Bitcoin ATM. With
the recentintroductionof walletswithcurrencyconversionfunctionsthere suddenlyexiststhe
opportunityforsecure andanonymousremittancesinthe currencyof oneschoosing,all thatisrequired
isfor the senderandreceivertohave a smart phone witha customiseddigital walletdownloaded.The

2. cost and featuresof the transactioncanbe setby the walletprovider,the opportunityexistingtoshave
percentage pointsof currenttransactioncosts.
An alternate meansof transmissionisviaBitcoinATM's,ATM's configuredto'vend'Bitcoindirectrather
than have one purchase itvia an exchange,Thoughsmall innumbertheyare rapidlygainingtraction in
the US andEurope,manufacturerssuchas Lamassu proposingthe provisionof transmissionand
currencyconversionfunctionality.Suchfunctionalitywouldallow one toinsertor'bank'cash intoan
ATM incountryA and a recipienttosecurelywithdraw the fundsinthe currencyof theirchoosingin
countryB.
Concernsaroundremittancesbeingusedforterroristfinancingorothercriminal activitieswouldrequire
any walletorATMprovidertoregisterwiththe relevantfinancial regulatorsandtheirusersrequiredto
complete KnowYourCustomerchecksbefore transmissionscouldtake place butthisneednotbe overly
onerousforeitherpartywiththe appropriate guidance andprocessesbuiltintothe operatingplatform.
The blockchainisa disruptive tool that hasthe potential toreturncurrentchargesto those whoneed
themmostwhile allowingahealthymarginforthe wallet/ATMproviderdue tothe economiesof scale
involved.