Bitcoin ATM operator Brandon Mintz predicts a surge in global Bitcoin ATM installations following the Bitcoin halving, as crypto FOMO typically intensifies during this time. The start of 2024 has already shown promising signs, with 1,469 crypto ATMs installed in the first three months alone. Mintz expects increased adoption of cryptocurrencies to drive more customers to Bitcoin ATMs, especially during the FOMO phase after the halving event. While the number of teller machines has increased recently, the number of ATM operators has actually decreased over the past 18 months, with some major casualties such as the bankruptcy of Coin Cloud.
Despite the decline of some major operators, Bitcoin Depot reported a 7% increase in revenues in the fourth quarter and full year of 2023. The company plans to install 900 ATM machines in the first quarter of 2024 and an additional 940 ATMs in convenience stores across 24 states in the US. Mintz believes that the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States will not negatively impact Bitcoin ATMs, as the customer base for each is different. ATM users primarily transact in cash, while ETFs are more suited to investors. Mintz suggests that increased adoption and price growth driven by ETFs could actually lead to more ATM usage as Bitcoin adoption continues to rise.
Bitcoin ATM scams are on the rise, with unsuspecting users losing substantial sums of money. Major Bitcoin teller machine manufacturer General Bytes experienced a security breach last year that led to $1.5 million worth of BTC stolen from a number of its operators. The hacker was able to upload their own Java application onto the company’s ATMs, allowing them to access funds on exchanges and hot wallets. In another incident, General Bytes reported a hack that resulted in the theft of deposited Bitcoins at ATMs, with around $16,000 stolen. These incidents highlight the importance of security measures for Bitcoin ATMs to protect user funds.
Mintz notes that historically, the uptick in Bitcoin adoption and ATM usage tends to occur after the halving event when the price of Bitcoin experiences significant growth. He believes it is still early in the cycle as the halving event approaches in late April. Mintz anticipates that the industry will continue to see growth in kiosk count as more customers are driven to Bitcoin ATMs during the FOMO phase and increased adoption of cryptocurrencies. Despite the recent decline in the number of ATM operators, Bitcoin Depot remains optimistic about the future of Bitcoin ATM installations and revenues.
The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States is not expected to negatively impact Bitcoin ATMs, according to Mintz. He views the ETF customer base as different from that of Bitcoin ATMs, with ATM users primarily transacting in cash. Mintz believes that the increased adoption and price growth driven by ETFs could actually lead to more ATM usage as Bitcoin adoption continues to rise. The company plans to install a significant number of new ATMs in the US, indicating their confidence in the potential for growth in the Bitcoin ATM market despite challenges such as scams and security breaches.
In conclusion, the Bitcoin ATM market is poised for growth following the Bitcoin halving event, with increased adoption and FOMO likely to drive more customers to Bitcoin ATMs. While security concerns such as scams and hacks remain prevalent, operators like Bitcoin Depot are focused on expanding their ATM network and revenue. The approval of spot Bitcoin ETFs in the US is seen as a positive development that could further boost Bitcoin adoption and ATM usage. Overall, the outlook for the Bitcoin ATM industry is optimistic, with continued growth expected in the coming months and years.
