According to Coin ATM Radar, there are over 38,000[1] bitcoin ATMs operating in the U.S. as of August 2024, up from 10 just a decade ago. These machines and other cash-to-crypto kiosks provide a crucial bridge between the digital and physical worlds of finance. Crypto exchange Coinme has been an instrumental player in building this bridge. The company has grown from operating just three bitcoin ATMs in Seattle to building an API that powers the largest network of cash-to-crypto machines in the United States.
Neil Bergquist, CEO of Coinme, envisions a future where using cryptocurrency for everyday transactions is as seamless as using popular mobile payment apps, part of a multicurrency future in which cash and crypto both play a role.
“It’s not just about dollars in a crypto world,” he says[2] . “Maybe you want to live in bitcoin, maybe you want to live in litecoin, maybe you want to live in dogecoin. Why not give people a choice of what currency they want to live in? That’s a huge opportunity. People can now live a multicurrency life.”
Coinme’s History
Coinme’s story begins in 2014, when Neil Bergquist and co-founder Michael Smyers saw an opportunity in the nascent bitcoin ATM market.
“We ended up getting a license, which was the first of its kind. It’s called a virtual currency money transmitter license,” explains Bergquist. “We helped the state create it, and then we launched the first licensed bitcoin ATM on May 1, 2014.”
From those humble beginnings, Coinme has grown exponentially. Today, the company enables cash-to-crypto transactions at over 40,000 locations in the U.S. — but these aren’t traditional bitcoin ATMs. Rather than install thousands of its own machines, the company pivoted to leveraging partnerships to incorporate its API into existing Coinstar and MoneyGram kiosks in easy-to-access locations. It’s a strategy that’s helped the enterprise expand quickly and meet everyday consumers interested in crypto where they are.
“There is a Coinme location located within roughly 5 miles for nearly 90% of the American population,” Bergquist notes.
The company celebrated its 10th anniversary this year by reaching $1 billion in sales, with a yearly average growth rate of over 150% since its inception.
“We founded Coinme in 2014 because we believed in the power of crypto to help people improve their everyday financial lives,” said[3] Bergquist in a statement marking the company’s first decade. “New technologies and asset classes are usually only available to a select few.
“True to the servant ethos of bitcoin, we’re pleased to have made bitcoin accessible for all. We’ve weathered many market cycles and are proud to emerge from the recent bear market profitable, growing quickly, and marking a decade of providing dependable retail access to crypto.”
Bitcoin ATMs and Cryptocurrency Adoption
Bitcoin ATMs and other physical cash-to-crypto machines serve a crucial function in the cryptocurrency ecosystem by providing an easy on-ramp for newcomers and a convenient service for experienced users. They allow individuals to buy bitcoin with cash, addressing one of the persistent challenges in cryptocurrency adoption: the ability to easily convert between digital assets and physical currency.
Bergquist emphasizes the importance of this accessibility: “We’re one of the only places where you can actually liquidate your crypto for cash so that cash can be utilized to buy goods or services. One of the misconceptions is that you can’t buy anything with bitcoin. Well, now you can liquidate your bitcoin for cash and buy anything you want.”
One of Coinme’s primary focuses has been simplifying the user experience. Bergquist acknowledges that interacting with cryptocurrency can be daunting for newcomers. To address this, Coinme has integrated wallets directly into its system.
“When you’re creating an account with Coinme, you’re also creating a wallet,” he explains. “When you put cash in the machine to buy bitcoin, we just deposit it into your Coinme wallet. You don’t even have to know what your wallet address is, and we handle that complexity, so it feels more like a bank deposit experience.”
This approach removes many of the technical barriers that can intimidate potential users. As Bergquist puts it, “We’re seeing a lot of user experience improvements where you don’t even need to understand the technology in order to engage with cryptocurrency. You don’t need to set up a private key. You don’t need to download a wallet, you don’t need to worry about digging up a landfill because you lost your USB stick in order to access your bitcoin.”
Flexibility in a Multicurrency Future
The concept of a multicurrency world and financial freedom is central to Coinme’s value proposition. Unlike traditional financial services built on a single fiat currency, Coinme offers access to multiple cryptocurrencies, and these coins can be purchased directly with cash.
“Venmo and PayPal are still built on a fiat-based financial system,” Bergquist explains. “Venmo pulls money from your bank account and deposits money into your bank account. Venmo’s using dollars, but a crypto-native financial institution gives you multicurrency access.”
This multicurrency approach offers several advantages, particularly for international transactions. “Crypto is built on blockchains, and blockchains are digitally native. It doesn’t matter which country you’re in,” says Bergquist. “If you want to broadcast a bitcoin transaction to the blockchain, you can do that regardless of what country you’re in. And that’s the beauty of an open financial system.”
Bergquist identifies three main use cases for cryptocurrency that Coinme serves:
- Cross-border transactions: For individuals who live a “multicountry life,” cryptocurrency offers a faster and cheaper way to send money internationally compared to traditional remittance services.
- Payments: Some users leverage cryptocurrency for everyday transactions, particularly in situations where merchants offer incentives for crypto payments to avoid credit card processing fees.
- Store of value: Many users view bitcoin and other cryptocurrencies as long-term investments, similar to digital gold.
Using Cash in a Digital World
Interestingly, despite the focus on digital currency, Coinme’s business model relies on cash transactions. This might seem counterintuitive in an increasingly cashless society, but Bergquist points out that cash still plays a significant role in many people’s lives, particularly those who are underserved by traditional banking systems.
“There’s over $50 billion a year of cash that’s sent from the U.S. to Latin America, and that’s cash to cash,” he notes. “Now you can put that cash into a Coinme location, get crypto, and send that anywhere faster and cheaper than a lot of existing solutions.”
Bergquist sees several trends shaping cryptocurrency adoption in the future. One is the growing institutional use of digital currencies as a store of value, exemplified by the recent approval of bitcoin exchange-traded funds and investments by major financial institutions.
Coinme has also launched initiatives like cryptoliteracy.org, which publishes an annual survey assessing Americans’ basic knowledge of cryptocurrency.
These educational efforts are crucial as the company looks to expand its reach and services.
Bergquist has hinted at future ways in which the company might branch out. It already offers a B2B “crypto as a service” offering that helps traditional financial institutions and digital financial services integrate cryptocurrency services.
It seems that bitcoin and other cryptocurrencies will only continue to gain mainstream attention, and companies like Coinme want to help bridge the gap between the digital and physical worlds of finance.
Neil Bergquist’s vision of a multicurrency digital world may still be on the horizon, but with each bitcoin ATM and each new user, that future comes a little closer to reality.