Brandon Mintz, the CEO of Bitcoin Depot, a prominent Bitcoin ATM operator, foresees a worldwide upsurge in Bitcoin ATM deployments post the Bitcoin halving event.
Mintz predicts that the phase subsequent to the halving, a time typically characterized by heightened crypto FOMO (fear of missing out), will spur a heightened demand for Bitcoin ATMs.
In 2023, the crypto ATM sector witnessed its inaugural yearly decrease in installations in over a decade, likely attributed to the bearish market compounded by the collapse of several crypto enterprises.
Nevertheless, the onset of 2024 has already exhibited promising indications, with 1,469 crypto ATMs installed solely in the initial three months, in contrast to over 3,000 units removed during the corresponding period in 2023, as per CoinATMRadar data.
FOMO to Drive Users to Bitcoin ATMs
Mintz is optimistic that the FOMO phase and the burgeoning adoption of cryptocurrencies will attract more customers to Bitcoin teller machines.
“It’s looking really positive that the industry continues to see a lot of growth in kiosk count,” he remarked.
However, Mintz believes it’s still early in the cycle as the impending halving event, slated for late April, approaches. Historically, the surge in Bitcoin adoption and ATM usage tends to occur post-halving, coinciding with significant growth in Bitcoin’s price.
Despite the recent increase in the number of teller machines, Mintz highlights a concerning trend: over the past 18 months, the number of ATM operators has dwindled. The bankruptcy of Coin Cloud, a major operator boasting 5,000 ATMs, stands out as one of the noteworthy casualties.
Mintz attributes the decline to the collapse of the crypto exchange FTX in November 2022, which had a significant impact on the crypto market.
In its fourth-quarter and full-year 2023 results, Bitcoin Depot reported a 7% increase in revenues compared to the previous year.
The company has ambitious plans to install 900 teller machines in the first quarter of 2024, followed by an additional 940 ATMs in convenience stores across 24 states in the United States.
Mintz remains confident that the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States will not negatively impact Bitcoin ATMs. He perceives the ETF customer base as distinct from that of Bitcoin ATMs, with ATM users primarily transacting in cash.
Moreover, Mintz suggests that the increased adoption and price growth driven by ETFs could actually lead to more ATM usage as Bitcoin adoption continues to soar.
Bitcoin ATM Hacks Become Prevalent
Bitcoin ATM scams are on the rise, resulting in unsuspecting users losing substantial sums of money.
Last year, a major Bitcoin teller machine manufacturer, General Bytes, fell victim to a security breach, resulting in $1.5 million worth of BTC being stolen from several of its crypto teller machine operators.
During the incident, General Bytes founder Karel Kyovsky revealed that a hacker managed to upload their own Java application onto the company’s Bitcoin ATMs. This allowed them to read and decrypt API keys, granting access to funds on exchanges and hot wallets.
In August 2022, General Bytes also reported another hack, resulting in the theft of deposited Bitcoins at ATMs, totaling around $16,000.
