Cryptocurrency ATMs are an intriguing way to introduce everyday consumers to Bitcoin. Providing a convenient interface for purchasing Bitcoin with cash has been somewhat successful, even with the higher fees common among these ATMs. It now appears that Ethereum ATMs are beginning to make an impact as well. Toronto has seen its first few machines of this kind installed earlier this week. It is an interesting idea, but will it gain traction?
Ethereum ATMs Arrive in Toronto
Some Bitcoin ATM manufacturers have been looking to start supporting altcoins as well. Lamassu seems to be leaning towards introducing altcoin support in the near future. We have documented how some altcoins are already somewhat popular in the ATM scene, although Ethereum had not been doing all that well at the time. It seemed there was a large demand for Litecoin, but other alternative cryptocurrencies were not getting much love from the average person.
LocalCoinATM thinks now is the time to bring Ethereum ATMs to market. The company recently unveiled several new machines spread out across Toronto. Several locations now support Ethereum, although the company has a few machines which have not yet received the update. It will be interesting to see if this venture is successful. Some people have a tough time wrapping their head around Bitcoin, and they may struggle with an alternative currency which is even more technology-oriented than the king of cryptocurrencies.
The decision to introduce these Ethereum ATMs in Toronto was calculated. The city is well known for its Ethereum Meetups and activity surrounding this particular cryptocurrency. Vitalik Buterin also has lived in Canada and was an active member of the Toronto Bitcoin scene before he started developing Ethereum a few years ago. The city is home to a few different cryptocurrency ATMs, most of which are operated by LocalCoinATM. Adding Ether support to six of these machines is an intriguing experiment.
Ethereum’s price was also a driving factor behind the decision. Throughout the year 2017, the price of Ether has surged significantly. Rising from under US$20 to nearly US$400 in the span of a few months has brought a lot of positive attention to this particular ecosystem. Ever since that time, the Ethereum price has declined a bit, but it has resumed a slow rise these past few days. This means more people may start to pay attention to Ethereum and could even end up purchasing a small amount of this cryptocurrency. Using an Ethereum ATM would be more convenient than signing up for an exchange and going through a lengthy verification process.
The usefulness of cryptocurrency ATMs has yet to be proven. Although we are big fans, the rest of the world is less than amused by the concept of buying Bitcoin — or Ethereum for that matter –– from a machine that accepts cash payments. Cryptocurrency is still a niche market dominated by speculators and people who can manipulate prices. The real-life use cases for Bitcoin and Ethereum are also very limited at best. Then again, this situation could change overnight, and people will be glad there are cryptocurrency ATMs around when that shift happens.
Having a wider variety of cryptocurrency ATMs around is a good idea, although it remains to be seen if there is any demand for them in the first place. So far, it seems LocalCoinATM is trying to remain ahead of market demand and ensure the infrastructure is in place first and foremost. We wish the company the best of luck with this effort, as it certainly has a lot of potential in the long run. Ethereum is finding its own place in the cryptocurrency world and will always have its loyal supporters. The bigger question is whether or not we will see other Ethereum ATMs deployed around the world in the future.