Decrease in Bitcoin ATM Installations Worldwide
After a decade of steady growth, the number of Bitcoin ATMs installed worldwide has decreased. Coin ATM Radar reported a reduction to 33,628 ATMs as of January 1, 2024, down from 37,827 on January 1, 2023, representing an 11.1% decrease.
Decline in the United States
The most significant decline in Bitcoin ATMs occurred in the United States, with a 15.4% reduction in its ATM count. Despite this, the U.S. still hosts 82% of the world’s crypto ATMs.
Performance of Manufacturers
The decline can be partly attributed to specific manufacturers. BitAccess saw a 26% decrease in its net installations, while General Bytes and Genesis Coin continued to grow their Bitcoin ATM installations throughout the year.
Growth and Demand in Specific Markets
Bitcoin Depot expanded to its 28th U.S. state and reported a 3% year-on-year revenue increase in Q3 2023, indicating continued demand for cryptocurrency ATMs in specific markets. The European Union also saw a slight increase in the number of crypto ATMs, along with countries like Canada, Australia, Spain, and Poland.
Ease of Access and Convenience
Bitcoin ATMs are popular among the underbanked or unbanked due to their ease of access. Despite higher fees compared to online exchanges, BTMs offer immediate conversion of physical cash to digital currency, facilitating peer-to-peer transactions and cross-border payments.
Challenges and Market Consolidation
The industry faces challenges such as scams, money laundering, and regulatory compliance. Larger companies are acquiring smaller operators as part of the market consolidation, driven by the difficulties in maintaining regulatory compliance.
Hot Take: Bitcoin ATM Installations Experience First Decrease in a Decade
The number of Bitcoin ATMs installed worldwide has experienced a notable decrease for the first time in a decade. This decline can be attributed to various factors, including changes in manufacturer installations and market consolidation. However, specific markets and regions continue to show growth and demand for cryptocurrency ATMs. Despite challenges such as scams and regulatory compliance, Bitcoin ATMs remain popular among certain segments of users due to their convenience and accessibility. It will be interesting to see how the industry evolves and adapts to these changing dynamics in the coming years.
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