US reigning the Bitcoin ATM industry
- July 26, 2017
Bitcoin ATM industry is growing in demand all over the globe, and many new BTM kiosks are coming up in popular cities. Recently we studied some of the projected trends of Bitcoin ATM around the globe; some results are quite interesting. Though Bitcoin currency is used in many parts around the globe, the United States is dominating the Bitcoin ATM market singlehandedly. As per the reports, more than 50 percent of BTM market share is in the United States, and this shows the popularity of Bitcoin in this part of the world. This is not the end, in coming days this trend is just going to increase!
Recent Data
As of June 2017, there are 1238 Bitcoin ATMs in 55 countries from 200 operators, interestingly around 627 are located in the United States. The second most Bitcoin ATM machines are found in Canada with around 150 BTMs, followed by the United Kingdom. Since the inception of Bitcoin ATM, United States is dominating, and with a passing year more and more BTM machines are seen coming up around the country. United States of America market will be dominating with more increase in Bitcoin ATM machines in days to come.
Why are operators choosing the US?
The growth trend of BTM industry in this part of the globe is certainly one thing that will grab your attention. There are definite reasons why operators are selecting the United States for their venture. We tried to catch up with some of the market experts and operators from different places. Most are seen agreeing to the fact that BTM industry is appearing much faster than what one assumed, as time is passing by many new records are broken. Where from this growth is coming?
The United States is dominating the Bitcoin ATM market with almost 73 percent of machines globally, and in the past 2 years, the share has grown considerably. Most of the new installations are taking in different parts of the country and it is successful enough in getting the attention of Bitcoin users. What’s more helping the cause is many existing operators around the country are enlarging their network of Bitcoin ATM machines. Many new operators are also coming up in the scene. At present, the United States dominates the Bitcoin ATM market with almost 55 percent of all machines around the globe, and this clearly shows the dominance.
Bitcoin ATM installation in the past few years
2014
- North America: 51.22 %
- Europe: 29.57 %
- Asia: 11.59 %
- Oceania: 6.10 %
- South America: 1.22 %
- Africa: 0.30 %
2015
- North America: 56.80 %
- Europe: 28.60 %
- Asia: 8.88 %
- Oceania: 4.93 %
- South America: 0.59 %
- Africa: 0.20 %
2016
- North America: 73.21 %
- Europe: 20.38 %
- Asia: 4.16 %
- Oceania: 1.81 %
- South America: 0.32 %
- Africa: 0.11 %
Privacy Concerns
There are numerous Bitcoin exchanges available in the market, but most users are seen fond of Bitcoin ATM machines. Many unique features coming up with BTM machines which are making it popular and easy to use. All popular Bitcoin ATM manufacturers from around the world have different identification features implemented such as phone registration using SMS, ID scanning, fingerprint sensor etc. The most important question is whether all operators are using these features or not. The reality is that it depends mostly on the geographic area and regulation of that place. Hugely depends on the ATM operator risk tolerances too.
There are Bitcoin ATM machines installed in many places around the country, and each has its limit and verification processes implemented in some or other form. This is a legal requirement and not following this can result in fines or even jail trail. However there are many machines around the country where you can buy this digital currency without registration, but with time this number will definitely come down as regulation matures. There are many instances where customers are using sunglasses, hoods and supplying burn phone numbers to carry out transactions.
Why use Bitcoin ATM machines?
There are many reasons why people from around the globe use Bitcoin ATM machines, and it is not solely because of privacy issues. The truth is obtaining Bitcoin via Bitcoin ATM machine is much easier than any other exchange, mostly for new users. Bitcoin users don’t have to register and wait for approval; also they can operate with cash. Many users don’t have bank accounts, and for them, Bitcoin ATM is the best option. Growing number of Bitcoin ATM machines around the globe is mostly because of this ease, and the number will keep increasing every year.
BTMs Worldwide
North America is seen to have more number of BTMs than any other region despite having strong fiat currencies. There are several reasons why so many BTMs are deployed for this reason instead of places where they may be needed more. Here are some of the reasons:
- Price is one important point. An average can only buy machines around $3,000 to $7,000 which is huge in developing countries compared to developed ones. In developed countries, wealth level is much higher.
- There are many criminal activities in some parts. Several instances of machines being damaged or stolen in the United States. This figure will be much higher in developing countries, and hence there will be much higher risks of running Bitcoin ATM machines.
- The demand of Bitcoin ATM machines in South America is less. There are many machines in Mexico which were not economically profitable, and in a certain point of time, it was closed down.
- The regulation also plays an important role. In some part, there are stricter rules or regulations which may be a reason why not many operators are eager to add more machines to their network.
- Financial level penetration is another important aspect. When you are into Bitcoin ATM business, you need to create a complete cycle where customers provide Bitcoin to cash conversions, and as an operator, you need to organize cash to Bitcoin exchanges. If it is tough on your part to get full access to these services, it is really tough to organize such businesses. Truly speaking it is very tough to find any banking partner in the United States who will provide access to an account. The success of Bitcoin ATM business is hugely connected with cash brought regularly and deposited to an account. For financial institutions, it is definitely a high-risk profile.
There are few countries which are banning Bitcoin ATMs, and it is mostly because these countries banned cryptocurrencies or Bitcoins in general.
For instance, it is really tough to find Bitcoin ATM machines in India or Russia. It is not about the ban but the fact that there are strict requirements and regulations. We discovered that in Germany you need to have bank level license from BaFin to operate Bitcoin ATM machines. Such strict rules and regulations make it practically impossible to run Bitcoin ATM machines there. Though there were few Bitcoin ATM machines installed, but later on, because of regulation, it was closed in many places.
What are your views about Bitcoin ATM market? Share your views in the comments section below.
