A Bitcoin ATM is quite similar to your typical bank ATM. The only significant difference is that a Bitcoin ATM deals with crypto and is directly connected to a BTC Blockchain instead of a bank server.
Most of the available Bitcoin ATMs are bidirectional. Hence, you can buy and sell Bitcoin instantly, all with the help of your crypto wallet.
According to BanklessTimes.com (BATMs) have increased substantially, with the top three Bitcoin ATM manufacturers controlling 76% of installations worldwide.
The site's crypto analyst, Alice Leetham, comments:
The dominance of top manufacturers is a positive sign for the overall crypto market. ATMs will ease the transfer and overall exchange of crypto, promoting crypto companies and relieving crypto owners. The rise in ATMs will ultimately serve as a catalyst in bringing in more crypto users as transactions are easier and faster.
BanklessTimes Crypto analyst, Alice Leetham
The Overall Crypto ATM Market
The Bitcoin ATM market is expected to reach a wholesome $5,451 million by 2030, with a CAGR of about 62.5%.
So far, the leading Bitcoin ATM manufacturer is General Bytes, which controls nearly 31% of ATM installations out of all 46 leading manufacturers. Genesis coin follows closely at 22.9% and BitAccess at 21.8%.
Based in the Czech Republic, General Bytes has continuously led the Bitcoin ATM manufacturing team, currently having ATMs in over 10,000 locations and nearly 17000 ATMs sold globally.
In terms of coverage, Genesis Coin follows General Bytes, having ATMs in nearly 7300 locations and Bit Access in over 6700 places.
Generally, The U.S. is leading in the number of ATM installations, taking over 90 % of the global share. Big players in the U.S. include Coinflip, Bitcoin Depot, and Coin Cloud.
Bitcoin Depot is the leading manufacturer in the U.S., holding over 25.4% of all Bitcoin ATMs in the U.S. The company is planning to grow bigger and increase its reach with the recent special purpose acquisition deal worth over $ 885 million.
Pros of Bitcoin ATMs
The huge advantage of Bitcoin ATMs is that anyone can buy or sell crypto assets without necessarily having a bank account. Besides, the process is instant, and you can easily exchange your Bitcoin at reduced rates.
They are designed nearly like the typical bank ATMs, so if you've done your ATM transactions before, you're already familiar with the process.
Besides, the increase in ATMs will make it easier to trade in crypto.
Bitcoin ATMs don't require sharing your personal information, enabling you to maintain your privacy and keep your assets. However, some require you to scan your I.D. during your transactions, but nothing more than that.
ATMs are potential hit sites for scammers. Since multiple transactions are done daily, a successful heist would mean having millions of dollars in your pocket, making them a primary target for scammers and hackers.
About $1.5 million was recently stolen from General Bytes when its cloud service was hacked, breaching several servers and accounts.
The company took precautions and made audits patching up the vulnerabilities. However, similar pulls were seen in 2021 and 2022, showing how targeted these machines are.
The increase in ATMs is a testament to the undeniable growth in the crypto industry. With more ATMs coming up, we can expect more people to adopt crypto and trade in digital assets.