The Rise and Fall (and Rise Again) of Bitcoin ATMs
Bitcoin ATMs are one of the ways people can easily exchange their fiat currency for cryptocurrency. Although there are online crypto exchanges that allow for the same transaction, Bitcoin ATMs provide a physical gateway for investors. In this article, we will discuss the recent trends in the number of Bitcoin ATMs and what they could mean for the future of cryptocurrency.
Bitcoin ATMs in a Historic Downtrend
In 2020, the number of Bitcoin ATMs only increased by 4,272, compared to the 20,300 new devices installed during the booming bull market in 2021. This poor performance in Bitcoin ATMs was a clear reflection of the bearish Bitcoin market. In September of 2022, there was a net decrease in the number of Bitcoin ATMs, marking the first time in Bitcoin’s history for such an event to occur.
During the first four months of 2023, the number of Bitcoin ATMs decreased by 5,850, according to CoinATMRadar data. March of the same year saw the largest net change ever with a decrease of 3,627 machines.
Back in the Old Rhythm?
However, the trend of decreasing Bitcoin ATMs came to an end in recent months when the total number of machines increased again for the first time since December of the previous year. The end of the month saw 1,397 more machines than at the start, marking a convincing increase since January. While it is too early to say whether this will completely leave the declining trend behind, it is a step in the right direction.
The Future of Bitcoin ATMs
The decline and then the recent increase in the number of Bitcoin ATMs can paint a picture of the current state of the cryptocurrency market. The first sign of the decline of Bitcoin ATMs was seen in 2020 when the bearish Bitcoin market left investors hesitant and uncertain. However, with the recent increase in installations, 2023 could see a positive trend in Bitcoin investment.
The future of Bitcoin ATMs and the cryptocurrency market as a whole depend on several factors. Government regulation and participation in the cryptocurrency market will likely play a significant role in determining the future growth or decline of Bitcoin ATMs. Additionally, the adoption and integration of Bitcoin as a form of payment in daily transactions could also decide the future of Bitcoin ATMs.
The number of Bitcoin ATMs had been in a historic downtrend since 2020 until recently when there was a convincing increase in the number of installed machines. While it is too early to say whether this will fix the declining trend, it is a step in the right direction for Bitcoin ATMs. The future of Bitcoin ATMs and cryptocurrency, in general, depend on several factors, including government regulation and adoption as a form of payment.