With cryptocurrency at the verge of making a breakthrough and continuously gaining popularity by adding users up to 50k on daily basis, the need to ease the process of trading has become necessary. It is a well-known fact that necessity is the mother of invention, so to keep the demand of the users and to make the crypto world reachable and efficient, Bitcoin ATM was introduced.
On October 29, 2013, a Robocoin machine opened in the Waves coffee shop in downtown Vancouver, Canada. This machine is known to be the world’s first publicly available Bitcoin ATM. A Bitcoin ATM is a kiosk that allows a person to exchange Bitcoin and cash. Some Bitcoin ATMs offer bi-directional functionality enabling both the purchase of Bitcoin as well as the sale of Bitcoin for cash. In some cases, Bitcoin ATM providers require users to have an existing account to transact on the machine.
According to the recent study conducted by business-to-business research firm MarketsandMarkets, the cryptocurrency ATM market will grow at a compound annual growth rate of 54.7% between 2018 and 2023. The bitcoin ATM market is forecast to expand at a CAGR of over 50% in a five-year period.
Currently, the number of bitcoin ATMs in the world is 3,650 from 3500 last month. On an average, approximately four ATMs are being installed daily. It is estimated that the cryptocurrency ATM market was worth $6.8 million last year but has since then grown to reach a figure of $16.3 million in 2018.
The study also determines that, compared to one-way ATMs, the two-way ATMs would enjoy a higher Compound Annual Growth Rate (CAGR). However, one-way ATMs currently dominate the market at 62.49% against a percentage of 37.51% for two-way ATMs. The user-friendliness of the display hardware is predicted to be responsible for its popularity. Also, for those looking to set up bitcoin ATMs, the display hardware comes with the added benefit of bringing cost savings since there is no need for keyboards and other extra hardware.
Globally, the largest market for cryptocurrency ATMs by 2023 will continue to be North America. At present, North America has 73.07% of the bitcoin ATMs in the world, with the United States being the clear leader. The survey attributed this to a regulatory environment that is relatively conducive for cryptocurrencies.
The reports from“Crypto ATM Market – Global Forecast to 2023” said,
“The US is expected to continue to dominate the crypto ATM market during the forecast period owing to the presence of a large number of crypto ATM hardware and software providers and favorable investment environment (without any legal barriers),”.
Adding to this “In 2017, the Government of Mexico declared bitcoin legal, and it would be regulated by the Fintech Law. In addition, Canada has recorded extensive start-up activity, especially for the cryptocurrency.”