Adding Dash to ATMs: Benefit or Confusion?

Jul 20, 2016 at 10:37 // Blockchain
Author
Lana Smiley

Tigo CTM added Dash to the roster of currencies available for purchase and sale over its network.

A Panama-based ATM manufacturer, Tigo CTM added altcoin Dash to the list of currencies available on its network. They think that kind of a partnership provides them with an even larger influx of clients, as Dash is private and easy to use. 

However, other market experts think it wouldn’t increase the client base that much, as it doesn’t really matter how many currencies the Bitcoin ATM provides. Their main purpose is exchanging fiat money for currencies, and the rest is minor. On the other hand, it’s good that other altcoins have their chance to be adopted thanks to ATM’s.

Tigo CTM

Any Alt Has to Have Some Utility to Compete with Bitcoin 

CoinIdol, world cryptocurrency news outlet, conducted a small survey of Bitcoin ATM owners and experts to find out whether adding dash to Tigo CTM’s ATM network will be of some benefit to the market. David V. Duccini, Executive Director of Strength in Numbers Foundation, a US "Digital Trust" established to develop and certify pro-social cryptocurrencies for the public benefit, stated:

“I think it’s great to see the more reputable altcoins beginning to get the same recognition for their value in the BTM space. Ultimately any alt has to have some utility beyond a “me too” or “brand coin” to compete with Bitcoin. ATMs were one of the last great contributions to the overall fiat currency world, adding more velocity than any other fintech to date.  With the advent of cryptocurrencies and mobile wallets, the ability to convert from one currency to another in as friction-free a way as possible, will help build end-user confidence and hopefully preference for crypto-currencies.”

Peter Trcek, CEO of Bitnik, a BTM operator from Slovenia, thinks it is also a good idea to add altcoins to ATMs. He stated:

“It's great to see more cryptos getting added to BTMs. It's a great endorsement of that coin. Especially as it does not come for free for the operator (liquidity, more confusing UX,...). Our prediction is that Ether will be the 2nd coin added to BTMs in EU (soonish). Dash is less popular.”

Adding Altcoins to ATMs Might Cause Nothing but Confusion?

Nevertheless, other experts think that’s not such a good idea, as it may cause nothing but confusion among users. Most of a Bitcoin ATM’s clients are Bitcoin users, so it would have little to no effect if they add other currencies to the machines’ lists.

Eric Grill, the CEO of Coinoutlet Inc, a Bitcoin ATM manufacturer from the USA with over 40 years of experience in the financial software industry, with a total of 7 years involved with Bitcoin specifically, thinks it to be a good idea to add altcoins to ATMs, but only when such coins are popular within the local community. Otherwise it could be of no use. He stated to CoinIdol:

“We would implement any cryptocurrency that had a demand or would be supported by a local community.  We have placed other cryptocurrencies on our machines but it led to confusion.  I think the way to make other cryptocurrencies, besides bitcoin, a success on a machine would be through local support.  The primary role of bitcoin ATM's it to exchange fiat currency for cryptocurrency.  Once you have one cryptocurrency it is very easy to convert it into another.”

Michael Dupree, the founder of Easybit, the world premier Bitcoin ATM company with nearly 50 machines in operation in over 10 countries, seems to support the previous opinion, stating they offered altcoins a while back, but the experience wasn’t successful, so they went back to offering Bitcoin only. He stated to CoinIdol:

“We only offer bitcoin now, as offering multiple cryptocurrencies at the ATMs led to more customer confusion than anything else. We definitely offered litecoin and a couple others at one point about a year ago and had less than 1 percent of our transactions in coins other than bitcoin. Otherwise we wouldn't have disabled the feature.” 

But the question remains. How should you promote altcoins to succeed, if not by adding them to ATMs?


  • Comments
Loading comments...