With a trend of growing number of bitcoin machine installations worldwide many business owners start to consider hosting a bitcoin ATM at their premises. This post is supposed to help take a decision about how to house a bitcoin machine.
Generally there are several ways of doing it:
Organizing all on your own and later on also self operating machine(-s);
Finding someone who will be ready to finance and install machine at your location;
Some options in between the above two scenarios.
Operating bitcoin machine on your own
When not to pursue…
The first option is rather a tedious task. Running a bitcoin ATM is a separate business by itself. In order to run a machine one should do all preliminary research work, e.g. finding out what is the legal status of such a business in the area and which licenses are required, then generally obtaining all permissions to do it within legal framework, which is usually time requiring and costly process. Apart from initial investments in legal advice services and obtaining permission, and then investment in machine hardware itself, business owner also will need to organize and maintain running of a bitcoin ATM on ongoing basis. This means to provide liquidity for bitcoin machine operations, and also organize the exchange process and provide all connected services, e.g. customer support.
One of the main issues is to close a cash to bitcoin exchange cycle as banks are not willingly open accounts for such a business. Using existing corporate accounts for this new activity is not recommended as it might lead to a bank account closure, which will entail extra risks for existing business. When running a bitcoin machine yourself, be prepared to provide proper support services, as Bitcoin is still a new and young phenomenon and many users will not have advanced knowledge or experience.
So concluding, running bitcoin machines on its own is a separate business, which will require a lot of effort and resources, and if you don’t want to do it as a full time endeavor, probably it is not the best idea to organize yourself.
When to pursue..
On opposite, if you are interested in bitcoin ATM business and especially when there are several locations available where ATMs can be installed, then running bitcoin machines on your own might be much profitable in the future than just providing and renting a place for them. If you’d like to pursue this opportunity you can read what are the most important aspects of running a bitcoin ATM or general knowledge base articles on how to start bitcoin ATM business.