2023 was a great year for crypto. Sadly, the same wasn't so true for crypto ATMs.
According to reports, the total number of these machines worldwide, decreased by more than 5,700, for the first time since their mainstream adoption in 2013.
Why did this happen despite the crypto market's recovery in 2023, and what is the impact? Let's find out.
Like cash ATMs, crypto ATMs let customers use cash or regular debit cards to buy and sell cryptocurrency from a physical machine.
They aren't as popular as internet-based exchanges, but many users view them as easy and accessible options for people who wish to escape the complexities of buying online.
By the end of 2022, over 39,000 cryptocurrency ATMs were operating in 97 countries and supporting over 70 cryptocurrencies, according to Coin ATM Radar. The US led the charge, possessing over 25,000 machines, followed by Austria, Germany, the UK, Canada, and the US.
However, things went very badly as of 2023.
The earlier upward trend in cryptocurrency ATMs took a sharp turn in 2023, with nearly 6,000 devices taken out of operation.
As a result, the number of cryptocurrency ATMs worldwide fell by about 15%, to around 33,600 at year's end.
The reasons behind this decline are not clear, but some possible factors include regulatory uncertainty, compliance costs, the sluggishness of the crypto market at the start of 2023, as well as technical issues.
There is also the issue of people robbing these ATMs like when seven individuals allegedly tried to steal a Bitcoin ATM in May 2023 at a smoke shop in Houston, Texas, per a report from ABC News.
This rash of crypto ATM robberies may have contributed to the overall decline in the number of crypto ATMs available worldwide
Crypto ATMs are unlikely to fizzle out, despite the difficulties of 2023.
Moreover, the crypto market itself is barely at its peak, and there is still a lot of room for development and innovation in the crypto ATM space.
For example,
The Coin ATM Radar also shows that the overall growth of crypto ATMs has been on the rise as of late as shown above.
Overall, ATM General Bytes appears to be taking the lead and is only a few more notches away from being overtaken by others like Bit Access and Genesis Coin, which are also in close competition with one another.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.