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Brandon Mintz, the CEO of Bitcoin (BTC) ATM operator Bitcoin Depot, forecasts a worldwide increase in Bitcoin ATM installations following the Bitcoin halving.
Mintz predicts that the aftermath of the halving, a time when crypto FOMO (fear of missing out) generally escalates, will boost the demand for Bitcoin ATMs.
In 2023, the number of crypto ATM installations saw its first annual decline in ten years, likely due to the bear market intensified by the downfall of several crypto companies.
Nevertheless, the beginning of 2024 has already displayed encouraging signs, with 1,469 crypto ATMs installed in the first three months alone, in contrast to the over 3,000 that were removed during the same timeframe in 2023, according to data from CoinATMRadar.
FOMO to Drive Users to Bitcoin ATMs
Mintz anticipates that the FOMO phase and the growing acceptance of cryptocurrencies will attract more users to Bitcoin ATMs.
“It’s looking really positive that the industry continues to see a lot of growth in kiosk count.”
However, he considers it still early in the cycle as the halving event, set for late April, approaches.
Historically, the increase in Bitcoin adoption and ATM usage tends to happen after the halving, when Bitcoin’s price sees substantial growth.
While the number of ATMs has risen recently, Mintz points out that the total number of ATM operators has actually declined over the past 18 months.
3 machines in a row at a local chain grocery.
I’m thinking Bitcoin ATM market may be saturated. pic.twitter.com/g4BWIxuHLr
— Neil ₿
(@RoninMiner) March 28, 2024
The bankruptcy of Coin Cloud, a significant operator with 5,000 ATMs, was one of the notable losses.
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Mintz links the decline to the collapse of the crypto exchange FTX in November 2022, which had a considerable effect on the crypto market.
Bitcoin Depot, in its fourth-quarter and full-year 2023 results, reported a 7% rise in revenues compared to the previous year.
The company plans to install 900 ATMs in the first quarter of 2024 and an additional 940 ATMs in convenience stores across 24 states in the United States.
Mintz believes that the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States will not adversely affect Bitcoin ATMs.
He perceives the ETF customer demographic as distinct from that of Bitcoin ATMs, with ATM users primarily engaging in cash transactions.
Mintz proposes that the heightened adoption and price appreciation driven by ETFs could potentially lead to increased ATM usage as Bitcoin adoption progresses.
Bitcoin ATM Hacks Become Prevalent
Bitcoin ATM scams are becoming more common, resulting in unsuspecting users losing significant amounts of money.
Last year, prominent Bitcoin ATM manufacturer General Bytes faced a security breach that resulted in $1.5 million worth of BTC being stolen from several of its crypto ATM operators.
At that time, General Bytes founder Karel Kyovsky stated that a hacker managed to upload their own Java application onto the company’s Bitcoin ATMs, enabling them to read and decrypt API keys to access funds on exchanges and hot wallets.
In August 2022, General Bytes also reported a hack that resulted in the theft of deposited Bitcoins at ATMs, leading to approximately $16,000 being stolen.
The post Bitcoin ATM Operator Expects Resurgence as FOMO Drives Bitcoin Price Higher appeared first on Cryptonews.
