Bitcoin ATMs Saw Decline: Over 400 Machines Disappear In 2 Months

Mar. 2, 2023
Bitcoin ATMs Saw Decline:  Over 400 Machines Disappear In 2 Months

Crypto ATMs, like Bitcoin ATMs, a crucial infrastructure for the widespread adoption of cryptocurrencies, are experiencing a significant reduction this year. In the first two months of 2023, there has been a decrease of 412 net cryptocurrency ATMs installed globally.

Since 2014, there has been a steady rise in the total number of crypto ATMs. Providing millions of users worldwide with seamless crypto-fiat conversions. However, the bear market has had an immediate impact on its growth. Between December 2020 and January 2022, over 1,000 crypto and Bitcoin ATMs were installed monthly.

Source: Coin ATM Radar

In September 2022, something unprecedented occurred as there was a decrease in the overall number of crypto ATMs. Fast forward to 2023, and this trend has continued with two consecutive months seeing a drop in total crypto ATM installations, which is a new record low.

Bitcoin ATM Providers Turn To Cheaper Alternatives

The worldwide crypto ATM network experienced a reduction of 289 machines in January 2023, followed by another drop of 123 machines in February. At first, this decline was primarily linked to political tensions, diminished revenue, and an extended bear market.

However, service providers have been experimenting with more cost-effective solutions to manage their operations. As Nocents recently reported that Bitcoin Depot, a company that provides crypto ATMs, has recently made the switch to BitAccess software for all 7,000 of its physical machines.

This move has helped the company cut down on operational expenses associated with software licensing fees, which had previously been costing them $3 million every year.

Additionally, Bitcoin Depot’s Vice President of BTM Operations, Ason Sacco, explained the rationale behind the company’s transition to BitAccess software. By replacing the existing hard drive with preloaded BitAccess software, the company sought to take advantage of its benefits.

There has been a consistent downward trend in the installation of crypto ATMs worldwide over the last few months. BitAccess became a market leader in the first half of 2022. However, they have experienced a decline in total ATM installations since then.

Source: Coin ATM Radar

Guilherme Nazar, Binance Brazil’s general manager, stated that:

payments are one of the first and most obvious use cases for crypto, yet adoption has a lot of room to grow.

Mastercard, the payments giant, has partnered with Binance to launch a card for crypto payments in Latin America. At launch, the card offered up to 8% cashback in crypto on eligible purchases and zero fees on some ATM withdrawals.

Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.