The global network of Bitcoin ATMs has hit a snag after a remarkable ten-month period of continuous expansion.
This decline, while significant, has raised questions about the future of Bitcoin ATMs, particularly concerning the impact of shutdowns within the United States.
The United States, along with Canada, holds a dominant position in the ATM market, representing 91.4% of the total network.
However, in May 2024, over 300 Bitcoin ATMs were deactivated in the US alone, raising eyebrows. According to reports, the reasons behind these shutdowns remain unclear, leaving industry experts puzzled about potential regulatory or compliance issues.
Currently, there are 37,618 Bitcoin ATMs located worldwide. The majority of these, totaling 31,089, are situated in the United States, followed by 2,911 in Canada, and 1,624 in Europe.
The repercussions of the US shutdowns extend beyond American soil. Canada, a significant player in the Bitcoin ATM market, also reported a small number of ATM deactivations. This suggests a potential ripple effect, where the health of the US market influences the global landscape of these ATMs.
Industry experts are closely monitoring the situation, trying to understand the reasons behind the US shutdowns and assessing their long-term impact.
A spokesperson from Bitcoin Depot, the largest ATM operator in the US, commented on the situation:
“Based on our own user surveys, a majority of our users use our products and services for non-speculative purposes, including money transfers, international remittances, and online purchases, among others.”
Notably, in 2024, Bitcoin Depot reported consistent profits. According to its annual 10-K filing on April 15, revenue wasn’t historically tied to bitcoin’s price.
Negative consequences such as decreased market confidence and regulatory scrutiny could have played a part in the recent decline. Despite the setbacks in the US, the global BTC teller machines market continues to grow.
Investments in countries like Australia and Europe have helped offset the decline, showcasing resilience in the face of challenges. Australia now boasts the third-largest network of active Bitcoin ATMs, behind only the US and Canada.
Interestingly, Poland stands out against the backdrop of this global scenario. Despite the decline in the US and elsewhere, Poland ranks fifth in terms of installed Bitcoin ATMs.
The country’s proactive approach to adopting digital currency technologies positions it favorably within the global Bitcoin ATM landscape.
