In the past year alone, Coin ATM Radar reports that the number of cryptocurrency ATMs worldwide has surged by 17.8%, reaching a total of 38,279 machines. This growth spurt, following a challenging period that saw a net loss of 2,861 machines in 2023, signals a robust recovery and renewed interest in these physical gateways to the digital currency world. With 2,564 new cryptocurrency ATMs installed in 2024 so far, the industry is inching closer to its December 2022 peak of 39,541 machines.
Neil Bergquist, CEO of crypto exchange Coinme, sees this resurgence as just the beginning.
"The bitcoin ATM market is projected to grow to $16.85 billion by 2033," Bergquist noted in a recent article.
Bitcoin ATM Growth by the Numbers
The U.S. dominates the global bitcoin ATM landscape, hosting over 82% of all machines worldwide. Canada comes in a distant second at 7.7%. This concentration in North America underscores the region's appetite for accessible cryptocurrency services.
"There is a Coinme location within roughly 5 miles for 90% of the American population,” says Bergquist.
This level of accessibility surpasses even traditional banking networks in terms of physical presence.
But it's not just about quantity. The strategic placement of these bitcoin ATMs is equally important, and Coinme has focused on crypto-enabling familiar and existing kiosks run by Coinstar rather than building out a network of new machines.
The rise of crypto ATMs is also starting to spread internationally. Australia, for instance, has seen the number of machines increase nearly seventeenfold to 1,107 over the past two years. At this rate, Australia is poised to overtake Europe's total of 1,584 crypto ATMs in the near future.
Bergquist, whose company Coinme operates one of the largest crypto cash exchange networks in the U.S., has been riding this wave since 2014.
"When we got started, we were one of the first 10 locations in the world," he recalls. "Now we've solved the access problem.”
Expanding Use Cases
Bergquist argues that bitcoin ATMs serve as crucial on-ramps for fiat currency to enter the crypto ecosystem. They have the potential to offer financial services to the unbanked and those wary of traditional banking systems.
The uses for these ATMs are diverse. Bergquist identifies three primary categories: remittances, payments, and investment. For remittances, bitcoin ATMs can offer a faster, cheaper alternative to traditional money transfer services. The World Bank recently reported that the median remittance fee is 6.35% of the amount sent.
"You can put that cash into a Coinme location, get crypto and send that anywhere faster and cheaper than a lot of existing solutions," Bergquist points out.
This efficiency is particularly relevant when considering the $50 billion in cash sent annually from the United States to Latin America. Bitcoin ATMs provide a digital bridge for these transactions, potentially revolutionizing how people send money across borders.
The payment use case, while still developing, is gaining traction. A recent Deloitte survey of 2,000 senior executives at U.S. consumer businesses found that 85% see the challenges of adopting cryptocurrencies as worthwhile, expecting their use to grow. The more they anticipated digital currency becoming common, the more they were willing to invest in related infrastructure. Leaders who predicted higher customer interest in digital currency over the next year were also more likely to invest. Additionally, 64% of merchants noted significant customer interest in using digital currencies for payments. They believe accepting digital currencies could expand their customer base, particularly with younger consumers, enhance customer service, and position their brand as modern and relevant.
And for investors interested in crypto as a store of value or hedge against inflation, these ATMs offer a tangible entry point into the crypto market. The ability to purchase bitcoin with cash bypasses the often intimidating process of setting up an online exchange account.
But education remains a significant challenge, with many still not quite sure what crypto is, let alone how to use it. Coinme's initiative, cryptoliteracy.org, aims to bridge this knowledge gap.
"Every November we publish a survey assessing Americans' basic knowledge of crypto literacy," Bergquist explains. "We have a basic crypto literacy test and unfortunately a lot of people can't pass it. We’d like to change that. The more we can educate people on how crypto is solving problems that exist with our current monetary system and financial service providers, the better.”
As we approach the projected $16.85 billion market value in 2033, it's clear that bitcoin ATMs are more than just a passing trend. They could represent the early stages of a fundamental shift in how we interact with money, bridging the gap between digital and physical finance.
“Bitcoin ATMs are neighborhood crypto access points,” said Bergquist. “People can purchase crypto while filling a gas tank or shopping for food. The sign 'Bitcoin Sold Here' invites curiosity about this new asset class and elicits interest in learning more about crypto. "In a multicurrency digital currency world, physical and digital channels will be combined to cash in and out of crypto, enabling a seamless experience and removing barriers to a blockchain-based financial system.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
