Cryptocurrency adoption faces a paradox that has persisted for over a decade. While Bitcoin’s upward trend gained momentum in 2024, pushing prices to new all-time highs and institutional interest has surged, everyday users continue to struggle with basic onboarding processes. Research shows that different networks (19.88%), investment strategies (16.27%), and onboarding/access (13.25%) were the most significant difficulties when learning how to use blockchain products.
Neil Bergquist has spent a decade addressing this fundamental barrier. The Coinme CEO’s approach centers on a simple premise: cryptocurrency infrastructure should be invisible to end users, much like how internet protocols disappeared behind user-friendly browsers. “We handle that complexity for you,” Bergquist notes. “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.”
This philosophy has guided Coinme’s development from a single Bitcoin ATM in Seattle to what the company claims is the easiest way to buy or sell crypto using cash or debit instantly at over 40,000 locations.
Solving the Wallet Address Problem
Traditional cryptocurrency transactions require users to navigate what Bergquist describes as a fundamentally intimidating process. “Anyone who has ever sent bitcoin or digital currency on-chain can agree that it’s scary,” he explained during a recent interview. “You’re entering a 16-character alphanumeric phrase. You’re copying and pasting it into a little box and then you’re clicking confirm. And once you click confirm, there’s no going back.”
Coinme’s solution integrates wallet functionality directly into the purchase process. “When you create an account with Coinme, you’re also creating a wallet,” Bergquist explains. “And so, when you put cash in the machine to buy bitcoin, we just deposit it into your Coinme wallet. You don’t even need to know what your wallet address is, and we handle that complexity, so it feels more like a bank deposit experience.”
This approach eliminates the QR code scanning and third-party wallet downloads that characterize most Bitcoin ATM experiences. Users simply enter their phone number at a kiosk, insert cash, and receive cryptocurrency in their automatically-created Coinme wallet. The company’s recent product update made this process even more seamless: crypto purchases from Coinstar kiosks now effortlessly and automatically load to the Coinme wallet in seconds, with no receipts required.
The API-Driven Infrastructure Play
Bergquist’s vision extends beyond consumer-facing applications. Coinme has developed what he calls a turnkey solution with no up-front financial investment by partners, where Coinme is the licensed counterparty for customer transactions. Coinme’s Crypto-as-a-Service platform allows businesses to integrate cryptocurrency functionality without building compliance infrastructure themselves.
The market for cryptocurrency infrastructure continues to expand rapidly. The global blockchain-as-a-service market is projected to reach $84.6 billion by 2031, growing at a compound annual rate of 59.3%.
The platform’s modular design allows businesses to select specific capabilities rather than adopting comprehensive systems. “Because Coinme has modular infrastructure, we’re able to allow the partner or the token project to really pick and choose the user experience that they want to provide,” Bergquist explains. “Some just want to distribute the token as a reward and then allow people to sell it and redeem it for cash. So they might just use custody and APIs from Coinme. Or maybe they want people to be able to buy it, or they want people to be able to swap it.”
Targeting Underserved Demographics
Bergquist’s strategy deliberately focuses on populations that traditional crypto exchanges have struggled to reach. 6.2% of underbanked U.S. households used cryptocurrency in 2023, compared to 4.8% of fully banked households, indicating that cash-to-crypto services address genuine market demand.
Coinme’s network positioning reflects this focus. The company operates in grocery stores, pharmacies, and retail locations where cash transactions remain common. Through its partners, there is a Coinme location within five miles for more than 90% of the American population.
The recent crypto literacy survey commissioned by Coinme revealed 98.6% of respondents who self-reported a ‘great deal’ of knowledge owned cryptocurrency, compared to 32% with limited understanding. This data supports Bergquist’s emphasis on simplifying the onboarding process to bridge knowledge gaps.
Competing Against Complexity, Not Competitors
Rather than directly competing with major cryptocurrency exchanges, Coinme positions itself as complementary infrastructure. “We’re a platform that provides crypto infrastructure,” says Coinme CEO Neil Bergquist. “That infrastructure is the ability to create an account and conduct know your customer compliance, to enable customers to use a debit card or cash to buy or sell digital currencies, and to custody digital currencies or send them to a customer’s wallet of their choice.”
Traditional exchanges excel at serving crypto-native users but struggle with onboarding newcomers. Research indicates that the capability to conduct everyday payments with a crypto wallet is the most important feature of a crypto wallet to over half (54.69%) of users, indicating a growing demand for a more practical and accessible crypto experience.
Coinme’s approach addresses this gap by abstracting technical complexity for its partners while maintaining regulatory compliance. The company operates in 48 states, enabling partners to launch crypto services without navigating licensing requirements themselves.
Demographic Shifts Drive Adoption
Bergquist’s timing appears aligned with generational preferences. Recent research indicates that 28% of investors aged 21 to 43 see greater growth potential in crypto and digital assets, compared to just 4% of those 44 and older.
These younger consumers expect digital-first experiences but often lack traditional banking relationships that other crypto services require. Coinme’s cash-based model serves this demographic while providing a pathway to more sophisticated crypto services as users gain comfort with digital assets.
The company’s transaction data supports this thesis. Coinme has surpassed a milestone of $1 billion in retail sales, marking 10 years since their launch of the first licensed Bitcoin ATM in the world, indicating sustained demand for accessible crypto onramps.
The infrastructure play positions Coinme to benefit from broader crypto adoption without requiring direct consumer acquisition. As businesses across industries seek to integrate digital asset capabilities, Bergquist’s API-driven approach could capture value from the expanding crypto economy while maintaining focus on user experience simplification that has defined the company’s first decade.
