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Global Surge in Bitcoin ATM Installations Expected
Brandon Mintz, CEO of Bitcoin ATM operator Bitcoin Depot, foresees a significant increase in Bitcoin ATM installations worldwide following the Bitcoin halving event. Mintz predicts that the post-halving period, known for heightened crypto FOMO, will drive a surge in demand for Bitcoin ATMs.
Recent Trends in Crypto ATM Installations
In 2023, there was a decline in crypto ATM installations, likely influenced by the bear market and the collapse of several crypto firms. However, the beginning of 2024 has shown positive signs, with 1,469 crypto ATMs installed in the first three months alone, compared to over 3,000 removed during the same period in 2023 according to data from CoinATMRadar.
Impact of FOMO on Bitcoin ATM Usage
Mintz expects the FOMO phase and the increasing adoption of cryptocurrencies to attract more customers to Bitcoin ATMs. He believes that the industry is poised for continued growth in kiosk count, especially as the halving event approaches.
Challenges and Opportunities in the Bitcoin ATM Market
Despite recent increases in ATM numbers, Mintz notes a decrease in the number of ATM operators over the past 18 months. The bankruptcy of major operator Coin Cloud and the impact of the collapse of crypto exchange FTX have contributed to this trend.
Future Outlook and Expansion Plans
Bitcoin Depot reported a 7% revenue increase in Q4 and full-year 2023. The company plans to install 900 ATMs in the first quarter of 2024 and an additional 940 ATMs in convenience stores across 24 states in the US.
Impact of Bitcoin ETFs on ATM Usage
Mintz believes that the approval of spot Bitcoin ETFs in the US will not negatively affect Bitcoin ATMs. He sees the ETF customer base as distinct from ATM users, who primarily transact in cash. The growth in ETF adoption could potentially lead to increased ATM usage as Bitcoin adoption rises.
Rise in Bitcoin ATM Scams
Bitcoin ATM scams are on the rise, with unsuspecting users losing significant amounts of money. Major ATM manufacturer General Bytes experienced security breaches resulting in substantial BTC theft. These incidents highlight the importance of security measures in the Bitcoin ATM industry.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
