Bitcoin Depot just surpassed the deployment of 8,000 Bitcoin ATMs, a move that has seen the company significantly enhance its operational footprint. To the uninitiated, Bitcoin Depot is a leading BTM or crypto ATM operator with thousands of locations, making it one of the largest Bitcoin ATM networks in North America.
Bitcoin Depot’s achievement of exceeding 8,000 kiosk locations ahead of schedule adds to the company’s expansion into other regions, such as Australia and Puerto Rico, not to mention its strategic retail partnerships that have increased its reach. Additionally, Bitcoin Depot has adopted a Bitcoin treasury strategy that further aligns with the company’s commitment to crypto and decentralized finance.
With 13,000 locations worldwide, Bitcoin Depot’s achievement not only solidifies the company’s market dominance but also highlights the rapid growth of demand and access to BTC.
Bitcoin ATM Market Overview
There are currently over 38,000 Bitcoin ATMs worldwide, with the lion’s share located in the U.S. While most Bitcoin ATMs feature higher transaction fees ranging from 4% to 25%, the growth of Bitcoin ATMs (especially in the U.S.) signals an increased demand for convenient access to Bitcoin.
Last year saw a slight decline in installed Bitcoin ATMs, hitting a two-year low of 17% due to concerns about potential criminal use of the ATMs. However, despite the setback, Bitcoin ATMs are ubiquitous as they offer a convenient and safe alternative to buying Bitcoin and other cryptocurrencies.
Moreover, Bitcoin ATMs benefit retailers as there are varying regulatory measures for cryptocurrencies but few restrictions on Bitcoin ATMs. This makes it easier for ATM operators like Bitcoin Depot to set up new machines and expand their network.
While most Bitcoin ATMs feature higher transaction fees, they offer the convenience of zero KYC, thus allowing users to buy Bitcoin and crypto without providing their personal information.
How Do Bitcoin ATMs Work
Bitcoin ATMs are quite straightforward to use. To use one, simply locate a Bitcoin ATM through the use of an online map or app to find a nearby Bitcoin ATM. Most Bitcoin ATM operators offer a map or app to help you find an ATM near you.
While most machines vary, most will require you to offer a form of identification, such as a phone number or a scan of your I.D. Without identity verification, you can insert your fiat cash into the machine to convert it into Bitcoin.
Once the machine receives the payment, you will receive Bitcoin in your digital wallet, which can be accessed via a Q.R. code. Most Bitcoin ATMs offer more than just an ATM. Bitcoin Depot, for instance, also offers the B.D. Checkout app that lets you checkout by paying with Bitcoin at particular retailer outlets. This makes it easier for users to spend Bitcoin, even for day-to-day utilities such as groceries.
Companies Providing Bitcoin ATMs
Apart from Bitcoin Depot, other companies offering crypto and Bitcoin ATMs include outfits such as Coinstar, which is a global company that’s listed on the NASDAQ. Since its founding in 1991, Coinstar has established its influence in the United States and has accumulated funding of $200 million.
Some of the biggest competitors to Bitcoin Depot include Cardcoins with over 58,000 locations and Unbank World which boasts over 39,000 locations. Genesis Coin is also a notable player with a significant market share given that they supply machines to operators. If you want a Bitcoin ATM operator with low fees and a widespread network, check out CoinFlip.
Athena Bitcoin is also a huge player in the scene, boasting a fleet of ATMs that allow anyone to buy crypto securely within 90 seconds using either fiat money or debit and credit cards. Athena Bitcoin also offers over-the-counter trading services where institutional traders can buy and sell larger volumes of Bitcoin and other cryptocurrencies.
Other major competitors in the scene include Byte Federal, which was founded in 2016, Localcoin in 2016, and Bitcaccess, with its headquarters in Ottawa, Canada.
Pros of Bitcoin ATMs
Bitcoin ATMs offer several benefits such as accessibility and convenience. Most Bitcoin ATMs are located in convenient places such as gas stations and convenience stores thus making it easy for users to access them.
As Bitcoin ATMs allow anyone to make a purchase, they go a long way to enable financial inclusion of the unbanked. Bitcoin ATMs offer people a way to become their own bank as opposed to traditional bank accounts that are restricted to verified users.
Also, speed and ease of transactions are additional benefits of using Bitcoin ATMs. An ATM for Bitcoin or crypto transactions is more straightforward and speedy than buying through an exchange online.
Cons of Bitcoin ATMs
Easily the biggest con for consumers are the enormous fees that Bitcoin ATMs charge compared to online exchanges. Bitcoin ATMs are excellent for instantly purchasing crypto but you will be subjected to some of the highest fees in all of crypto.
While there is a boom of Bitcoin ATMs, some challenges that industry players face include costly maintenance. In some cases, Bitcoin ATMs get removed thus reducing the number of installed ATMs.
The lack of regulatory clarity has left most operators in limbo and unable to determine the legality of selling Bitcoin through ATMS. For instance, a recent crackdown by the U.K. government over unregistered crypto did not spare crypto ATMs, which were shut down over concerns of being used to launder money.
Also, while crypto ATMs are growing increasingly popular, some operators run the risk of going bankrupt as is the case with Coin Cloud ATM’s filing of Chapter 11 bankruptcy in the U.S.
Lastly, a lack of education among the masses is also a factor holding back the spread of Bitcoin ATMs. Bitcoin and crypto are now mainstream, but there is still a significant percentage of people who are unaware of the benefits of using Bitcoin ATMs, let alone the benefits of cryptocurrencies.
Conclusion
Bitcoin Depot’s achievement of deploying over 8,000 Bitcoin ATMs marks a significant milestone in the world of cryptocurrency.
This expansion not only highlights the company’s dedication but also reflects the growing acceptance and demand for Bitcoin. As users appreciate Bitcoin’s utility as a store of value amid an uncertain global economy, so does the number of Bitcoin ATMs, which continue to rise.
The growth of Bitcoin ATM operators such as Bitcoin Depot, Genesis Coin, and Coinstar has led more people to gain easy access to digital currencies, further integrating them into our everyday financial ecosystem.
