DUBLIN – The remarkable rise of the cryptocurrency sector and the increasing adoption of digital assets continue to attract investors looking for ways to join the digital asset ecosystem. Therefore, cryptocurrency ATMs are emerging as one of the perfect entry points in the digital currency space based on the number of new installations globally.
Data acquired by cryptocurrency trading simulator Crypto Parrot indicates that as of April 6, 2021, the total number of cryptocurrency ATMs globally stood at 17,827. Based on the daily installation rate, projections suggest that at least 1.6 cryptocurrency ATMs are installed every hour or at least 38.4 ATMs per day, according to data provided by Coinatmradar.com.
The growth means that as of June 2021, the number of crypto ATMs globally is expected to exceed 20,000, to represent a growth of 12.27% from the April 6 figure. The projected increase in digital asset ATMs reflects the increasing maturity of the digital currency market that aims for mainstream adoption. As more investors come on board, cryptocurrency ATMs act as crucial gateways into the crypto space for beginners.
Demand for cryptocurrencies reflects sector’s growth
In 2021 specifically, the cryptocurrency sector has skyrocketed, with institutional investors acting as a catalyst. Institutions like Tesla, PayPal, and Mastercard are making advances in the industry by either investing in bitcoin or allowing digital assets processing through their platforms.
In the end, there are high expectations that such institutions will contribute to mainstream adoption leading to a surge in prices of digital assets. Therefore, ATMs will keep enabling new users to make their first steps into the cryptocurrency space.
The increasing role of cryptocurrencies as forms of payment also plays a crucial role in the projected ATM’s growth. Cryptocurrencies power contactless payments that continue to gain prominence amid the coronavirus pandemic. This lays the ground for setting up ATMs, with many entities and businesses increasingly allowing cryptocurrency payment. The ability to support payments will contribute to diversification in installing ATMs with convenience stores and even coffee shops having several machines.
Furthermore, as more investors come on board, they can opt for ATMs since they offer simplicity and convenience, especially for individuals who don’t want to use online exchanges in acquiring digital assets. Most exchanges are categorized with rigorous Know-Your-Customer checks and verifications that can discourage some people.
The fact that crypto ATMs growth is a direct result of the sector’s surge in market value is also reflected in the penetration of machines supporting bitcoin. According to our previous research, over the last five years, bitcoin ATM penetration per person has grown 15 fold between February 2017 and February 2021.
Specific regions to lead in crypto ATMs growth
Although the growth of cryptocurrency ATMs is worldwide, specific regions are expected to lead the way. For example, regions with high cryptocurrency demand and supportive environments like the United States will potentially keep leading the pack. In general, developed countries alongside crypto-friendly regulations will keep leading in the innovation of crypto ATM hardware. Furthermore, jurisdictions that consider cryptocurrencies like bitcoin-friendly will continue to accelerate the installation of ATMs.
On the flip side, the regulatory uncertainty, lack of awareness, and technical understanding of cryptocurrencies might restrict crypto ATMs’ growth. Simultaneously, despite most manufacturers making advances, concerns about these relatively new ATMs’ security and privacy might hamper growth.
Courtesy Of CryptoParrot.