The difference between a Bitcoin ATM in Madrid and a bank ATM

The difference between a Bitcoin ATM in Madrid and a bank ATM

More than meets the eye

On the surface, a casual observer would be forgiven if, when walking past the ATM area in a crowded shopping centre, they were to say that all they see are a few machines lit up in various colours offering more or less the same service. However, if one were to inspect more closely the flashing lights, there is very little to compare when talking about Bitcoin ATMs to their standard counterparts.

Centralization vs. Decentralization

The main issue is that the Bitcoin system differs greatly from the Banking system. What is centralization though? Centralized systems are ones where the unit of value is controlled by one single entity which needs to control it and maintain that network. Banks are exactly such a point through which ordinary ATMs work. The Banks allow you to pay in and pay out your funds and are the ones responsible for tracking but mostly keeping your funds safe. They can also suspend your account if you don’t follow their rules or limit how much you’d like to take out. Centralisation comes with a certain cost, and that cost is not being in complete control of your funds.

On the other hand, the decentralized network is one where the funds are not stored in one system, but within many nodes. All Bitcoins, for example, exist on the Bitcoin network, but in order for them to be mined (created) or transferred, the nodes must agree with one another, which is called consensus. Thereby, if one node goes down, the information of the whole blockchain is still stored on the other nodes. Likewise, when you get Bitcoin sent to your account (wallet), then you also have a private key which allows you full control of that asset.

Bitcoin ATMs vs. Crypto exchanges

Knowing now that the Bitcoin blockchain network is one based on decentralization, it would make complete sense to think that everything connected to it therefore was decentralized. But what if I were to tell you that the private key through which you control your Bitcoin, could be given over to a third-party? That is what a crypto exchange is. You may have heard of the saying: “Not your keys, not your crypto” - this relates to what happens when you buy cryptocurrencies on a crypto exchange. They become the holders of the keys and so one of the fundamental tenets of why Bitcoin was created in the first place is denied. When an exchange acts as a broker for you, this means that the system you’re using is centralized.

Why should I use Bitcoin ATMs and a self-custody wallet?

Bitcoin ATMs therefore, unlike ordinary ATMs connected to banks, are tools for decentralization. If you possess a self-custody wallet which allows you to control your own keys, you can use a Bitcoin ATM to transfer funds to use, by paying cash into the machine and providing your public key (the place connected to your private key, which is your private wallet).In this way it is just you, the company which takes a small fee for using the machine and your wallet. No-one can block this transaction. Likewise if you want to pay out of your wallet, then the Bitcoin ATM will give you the cash of the crypto you sell it. This is a beautiful system between private ownership, private enterprise (the Bitcoin ATM) and fiat currency - like a bridge which covers  both shores.

How are Bitcoin ATMs doing in Madrid?

It is a strange paradox but when the price of Bitcoin is low, this is when there seem to be less clients at the Bitcoin ATMs. One worker who works in a Bitcoin ATM kiosk in a town named Chuecha close to Madrid, said: “What happens is that 95% of people go the other way. When it's time to sell, they buy. And when it's time to buy because the price is low, like now, they sell”. It is unfortunate that only the knowledgeable Bitcoin investors “are the ones who know how the business is going, and that when the price is lower it is time to buy. Those who have never bought before get scared when they hear the news about how the market is.” Understanding Bitcoin technology and the potential of the price to significantly go up, it is never too late to start investing in cryptocurrencies.

What are some of the best Bitcoin ATMs in the Madrid area?

As mentioned before, the company who owns the Bitcoin ATM will charge a fee. This fee is necessary to run their business understandably, but sometimes the fees can range between 8 to 15% on average. As a result, one of the best Bitcoin ATM operators in and around Madrid, is Shitcoins.club. Their machines offer the cheapest, from the author’s experience, fees while also providing one-to-one service through a support line should any transaction be difficult for some reason. 

Where can I find the Bitcoin ATMs in Madrid?

These Bitcoin ATMs can be read more about in some of our other articles. For example the location of Bitcoin ATMs are described here. To learn more about common questions in regards to Bitcoin ATMs, click here.

Conclusion

You can read more about Bitcoin ATMs and their characteristics here. On the one hand Bitcoin ATMs look extremely similar to ordinary ATMs found on every high street. However, behind their technology and their independence from a central body, they are merely a conduit through which a person can anonymously and safely transfer their fiat currency into Bitcoin and vice versa. Bitcoin as a store of value will probably eventually exponentially go up, so there is no time to waste in investing in it at a Bitcoin ATM near you!