As cryptocurrencies are gaining popularity and becoming widely adopted, it is predicted that the Bitcoin ATM market will skyrocket within five years.
Today more and more people are joining the rows of cryptocurrency users, more and more companies are offering payment options that presuppose transactions with cryptos and, in general, using of cryptocurrencies is becoming easier and more convenient.
Given these factors, the business-to-business research firm MarketsandMarkets has conducted a study devoted to the cryptocurrency ATM market. According to the obtained results, it is believed that the market will show a compound annual growth rate (CAGR ) of 54.7% within the next 5-year period.
While at the moment the Bitcoin ATM market values $16.3 million (in 2017, this indicator was $6.8 million), experts expect it to achieve$145 million in value by 2023.
Currently, there are 3 650 Bitcoin ATMs in the world, while early last month there were 3 500 of them. Taking into consideration these figures, we can make a conclusion that every day approximately four new Bitcoin ATMs are installed somewhere on the Earth which also means that the market value is growing actively.
According to the study conducted by MarketsandMarkets, two-way ATMs, that let users trade and purchase cryptocurrencies from a single device, will be more demanded and will score a higher a CAGR in comparison with one-way ATMs.
Nevertheless, it’s worth mentioning that at the current moment one-way ATMs are much more widely spread and hold a market share of 62.49% while two-way ATMs occupy the remaining 37.51%.
As for ATM types, it is expected that the display segment of the Bitcoin ATM market will turn out to be the most popular and demanded one over time. Now, there are two more types of ATMs that include QR Scanner and ATM Printer types. Researchers believe that display ATM units will dominate the market due to their user-friendliness. Moreover, these ATMs do not need any extra devices or peripherals to operate which helps to reduce expenses for retailers.
The report also revealed that North America is an absolute leader in the Bitcoin ATM sector as it owns the greatest market share of 73% and it is believed that the continent will continue to hold the leading positions within 5 years.
At the moment, the largest number of Bitcoin ATMs is installed in the United States. Currently, there are 2 201 ATMs in the U.S. The second place in this list is occupied by Canada. The report reads:
“The US is expected to continue to dominate the crypto ATM market during the forecast period owing to the presence of a large number of crypto ATM hardware and software providers and favorable investment environment (without any legal barriers),” the report titled. In 2017, the Government of Mexico declared bitcoin legal, and it would be regulated by the Fintech Law. In addition, Canada has recorded extensive start-up activity, especially for cryptocurrency.”
The third biggest Bitcoin ATM market is Austria (with 196 ATMs), it is followed by the United Kingdom (176 locations), Russia (79 locations), and Spain (63 locations).
The majority of these ATMs give their users an opportunity to work with Bitcoin while only 56.7% of these machines can offer support for altcoins.
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