Bitcoin has gained increasing prominence in emerging and developing economies since last year, especially in areas where traditional financial systems are inadequate or inaccessible. This trend highlights bitcoin’s utility beyond its common perception as an investment tool; which is rapidly becoming a practical financial alternative in these regions. In such economies, bitcoin is being adopted not for its investment potential but as a viable solution to financial challenges. It is increasingly seen as a workable alternative to unstable local currencies, offering a potential hedge against inflation and currency depreciation. This is particularly relevant in countries with high inflation rates, where bitcoin’s limited supply and decentralised nature provide an attractive alternative to fiat currencies. Cryptocurrency is a digital currency – created on binary data and can be traded online for goods and services. Secured by complex algorithms and cryptography, these currencies are impossible to counterfeit or double spend. As of 2022, more than 10,000 types of digital currencies were registered around the world.
The digital currencies work using blockchain technology, which is a decentralised technology spread across the computer network and is nearly impossible to erase the record. And due to its special features, a number of investors feel safer to invest in blockchain technology. Australia has cemented its position as a global leader in crypto adoption. Recent Swyftx surveys have identified Aussies as being in the top 10 for digital asset ownership in the world, and now the infrastructure is arriving to support them. According to media reports, Australia now sits as the “fastest-growing market” for Bitcoin ATMs in a trend that is expected to continue. Once a novelty, Australia now boasts over 1,000 crypto ATMs, with CoinFlip (formerly Olliv) leading the charge with the most extensive coverage nationwide. They may look like old-school bank ATMs, but that’s where the similarities end. These machines allow customers to feed in cash to buy various cryptocurrencies at the displayed exchange rate. The ATM, which typically has higher fees than online exchanges, transfers the crypto to the customer’s digital wallet, where they can store it for potential value increase or use it to pay for items from sellers who accept the currency. Some machines even allow cash withdrawals. The number of cryptocurrency ATMs in Australia has increased 16-fold in the past two years. More than 1,200 of the machines now occupy space across the country, according to a company which tracks and analyses crypto data, Coin ATM Radar. The machines process a host of the major cryptocurrencies and their spin-offs, including Bitcoin and Lightning BTC, Ether, Ripple and Dogecoin. But the machines are used by people to launder money, or more accurately deposit money and then hide it behind webs of transactions and using the encrypted nature of crypto. Australia now has the third most machines in the world, with at least 1,261, according to Coin Radar ATM. The US has more than 35,000, and Canada has the second most with about 3,000.
But nowhere is being flooded with the machines faster than Australia right now. The boom began about the New Year in 2023 when barely 200 of the kiosks were in the country. However, Commonwealth Bank, Westpac, NAB and ANZ have all put safeguards on how much crypto can be traded with now transactions being declined or getting held up for 24 hours. In 2022, offshore companies began taking action to fulfill the needs of crypto users, driving the country’s Bitcoin ATM market to grow by 176 per cent ever since. Chicago-based CoinFlip is the frontrunner in Australia’s crypto ATM sector, with 700 kiosks nationwide. CoinFlip’s ATMs support $BTC, $ETH, $LTC, $DOGE, $USDT, and fiat. And most of its kiosks are located in Sydney (383), Melbourne (282), Brisbane (191), and Perth (134). Despite regulatory concerns and hurdles over crypto security, Australia has quickly become a major player in the crypto ATM market. CoinFlip’s crypto kiosks likely make Australia an attractive country for blockchain enthusiasts who want to travel and spend their digital assets hassle-free. It seems the appetite for an easy and secure way to buy and sell Bitcoin using cash is only getting stronger. Ben Brockliss, co-founder of CoinFlip, has been quoted as saying: “Since entering the Australian and New Zealand markets, CoinFlip has seen a 384 per cent increase in volume transacted in Australia and a 235 per cent increase in New Zealand.” Beyond the possibility of a global currency, Brockliss says cryptocurrency can increase economic equity and wealth in communities without access to traditional wealth-building opportunities. “Since bitcoin was invented, crypto has matured as an asset class, proving to be an attractive, long-term investment,” he says. “Bitcoin ATMs give everyday people access to owning a piece of this booming financial sector without needing a fancy wealth advisor or broker. This powerful, equalising force will help ensure that cryptocurrency doesn’t become a walled-off rose garden available only to those fortunate enough to have access.”
With Bitcoin hitting another record high and now traded in exchange-traded funds (ETFs), cryptocurrencies are well and truly cementing themselves as more than a cultural phenomenon. The tough regulatory climate, however, has done little to curb the positive trend of Bitcoin ATMs reaching Australian shores. According to US company CoinFlip, their Australian Bitcoin ATMs have noted a 400 per cent increase in transaction value over the past 12 months – although fees can come in at a hefty 6-14 per cent. Bitcoin Depot’s CEO Brandon Mintz, as quoted in several reports, says that the Australian “market has potential to grow by thousands of Bitcoin ATMs over the next couple of years”. The surge in Bitcoin kiosks follows a false start in Australia after the country cracked down on the machines amid a rise in crypto prices in 2019. Local crypto exchange Auscoin was first to market several years ago, but its efforts to build a network of ATMs floundered when the financial regulator, AUSTRAC, suspended its license due to alleged links with organized crime. In April 2022, the regulator cited crypto ATMs as a concern for funding criminal activity in its Preventing the Criminal Abuse Of Digital Currencies report. Bitcoin ATMs are not illegal in Australia, provided they are licensed. And did you know, you could buy property using Bitcoin? Yes, you heard that right. You can buy a property in Dubai using Bitcoin as several developers offer to sell properties through cryptocurrencies. However, the Sales and Purchase Agreement (SPA) will be signed based on Dirhams only and has to be legally compliant. Buying a property in Dubai through cryptocurrency is not yet mainstream but its ongoing integration in the real estate sector is expected to revolutionise the future of the property buying and selling process in Dubai. Created by Satoshi Nakamoto and launched in 2009, Bitcoin was supposed to be a medium for daily transactions, making it possible to buy everything from a cup of coffee to a car. In 2024, a range of products and services can be purchased by Bitcoin. Retailer and consumer acceptance of Bitcoin has mirrored its wild ride in crypto markets, and as its value increased in 2017, so did its appeal as a currency. Innovations like the Lightning Network scale the number of transactions in the cryptocurrency’s network, making them faster and more efficient. Cryptocurrency is no longer confined to an obscure corner of the financial services industry. The crypto exchange platform Coinbase’s public listing, new price records, and positive mentions by regulators and policymakers are proof of its potential.
Still wondering what you can buy? Well, the list includes Lamborghinis, with electric carmaker Tesla joining the list of companies that enable you to purchase cars with cryptocurrency. Technology and e-commerce products that sell tech products accept cryptocurrency, including Newegg, AT&T, and Microsoft. Other sites, including Shopify and the Japanese e-commerce giant Rakuten, allow you to purchase products with Bitcoin. The online luxury retailer BitDials offers Rolex, Patek Philippe, and other high-end watches in return for Bitcoin and other cryptocurrencies. Luxury watchmaker Franck Muller produced a watch encrusted with gold and diamonds with a QR code from the Bitcoin Genesis Block. In 2014, magazine publisher Time Inc. began accepting cryptocurrency for digital subscriptions. In 2019, the magazine publisher formed a new cryptocurrency partnership with Crypto.com. In April 2021, Swiss insurer AXA began accepting cryptocurrency as a mode of payment for all of its lines of insurance except for life insurance. Metromile, an agency that sells “pay-per-mile” auto insurance policies, also accepts Bitcoin for premium payments. The list of goods and services you can buy with Bitcoin and other cryptocurrencies is growing as people and vendors get more comfortable with virtual money. Insurance, consumer staples, luxury watches, and event tickets are among the items that cryptos will buy. Bitcoin is intriguing as a use of modern technology. The supply of bitcoins is carefully controlled and limited, and no one can create or issue more bitcoins at will. There will never be more than 21 million bitcoins, and each bitcoin is itself divisible into 100 million units known as Satoshis. This prevents the kind of erosion of value that plagues ‘normal’ currency (a phenomenon that the residents of Zimbabwe and Venezuela know only too well). Like any fast-developing space mushrooming with new technologies, there are higher quality cryptocurrencies and lower quality ones. In the face of often slick marketing operations, many ordinary people understandably struggle to tell which cryptocurrencies have real potential and have genuine points of technical novelty, and which are simple clones of other currencies, or, worse, outright scams.
Views expressed are personal
