Although bitcoin is doing great so far in the new year, bitcoin ATMs are no longer in such good shape. According to data provided by a platform that monitors the aisle of the market, the number of bitcoin ATMs has dropped dramatically.
Tough time for cryptocurrency ATMs
Bitcoin ATMs are an integral part of the public space. In addition to the utility value of being able to buy and sell Bitcoin, as well as many altcoins, their function is to remind the public of the existence of cryptocurrencies and the fact of their strong adoption. Unfortunately, while cryptocurrencies are doing great in 2023, Bitcoin ATMs are no longer. As Coin ATM Radar reports, exactly 412 devices disappeared from the network in less than 60 days.
Looking back, we can see that a similar event took place in September 2022, when Bitomats disappeared for the first time in history. Back then, the decrease was 396 units. This time, for the first time in history, it happens two months in a row.
Moreover, at the time of this writing, we can see that a new record decline of exactly 1,058 Bitcoin ATMs has already been recorded at the very beginning of March. Keep in mind, however, that this statistic is talking about the net value, which means that if new devices appear in their place, the rate could regress significantly.
What is happening to Bitcoin ATMs?
Initially, the decline in Bitomats was attributed primarily to geopolitical considerations. The loss of revenue for operators resulting from the ongoing bear market was also a significant concern. Especially since the cost of maintaining the devices remained flat. However, it turned out that some of the service providers decided to implement cheaper alternatives. Bitcoin Depot has emerged as the leader here. According to data provided by the service provider, it has converted 7,000 Bitcoin ATMs to BitAccess software. Thus, the previous operating costs, resulting from license fees, have decreased significantly. Previously, they amounted to about $3 million a year.
Are payment cards displacing Bitcoin ATMs?
The needs for using Bitcoin ATMs can vary. One of the key ones is the ability to withdraw the money earned on an investment, in order to make daily purchases. This feature may now be supplanted by another solution. All thanks to the popularization of payment cards, provided by exchanges. Many entities have already implemented such options. Among them are such platforms as Binance, Gemini, and Crypto.com. Their presence in the long term has the right to influence the slowing down of bitcoin ATM adoption.