The number of Bitcoin or Crypto ATMs dropped significantly this year

The number of Bitcoin ATMs, or crypto-ATMs, has plummeted this year. According to data compiled by BitcoinCasinos.com, more than 5,300 Bitcoin ATMs have been removed so far this year. The the total number fell to around 33,800 worldwide.

The year 2022 proved to be a challenging time for the cryptocurrency industry. Last year was characterized by a year-long bear market accompanied by geopolitical tensions and global inflation. This resulted in a dramatic decline in the installation of Bitcoin ATMs worldwide.

This report explores the reasons behind the bear market, geopolitical tensions and global inflation and how they affected the crypto industry. Especially the installation of Bitcoin ATMs.

Bearish narratives

“Bear market” is a term used to describe a period of falling asset prices. Usually in the stock or cryptocurrency market. In the crypto industry, a bear market is often characterized by a sharp drop in the value of cryptocurrencies. It can last for months or even years. In 2022, the crypto industry was hit by a year-long bear market that affected the growth and use of cryptocurrencies.

One of the reasons for the bear market was the crackdown on cryptocurrency trading and mining from several countries around the world. China, formerly a crypto mining hub, banned all cryptocurrency related activities, including trading and mining. This led to a massive drop in the price of cryptocurrencies. Especially Bitcoin, which influenced the installation of Bitcoin ATMs.

ATMs are disappearing

Investors and businesses became more cautious, leading to lower demand for crypto services, including the installation of Bitcoin ATMs. September 2022 was the first time total crypto ATMs saw a net decrease. However, 2023 marked a new low with a decrease in total crypto ATM installations in subsequent months.

With 3,627 crypto ATMs going down last month, as seen in the graph above. March 2023 will be the month with the sharpest monthly decline of crypto ATMs.

Geopolitical tensions also played a role in the bear market and the decline in Bitcoin ATM installations. The year 2022 was characterized by increased tensions between countries, especially the United States and China, which resulted in a trade war. This ripple effect on the global economy led to rising inflation worldwide. Inflation is the rate at which the general price level of goods and services increases, leading to a fall in the purchasing power of a currency.

Effects of inflation

The increase in inflation rates affected the crypto industry in several ways. First, by making it more expensive to operate crypto mining facilities, reducing the number of miners worldwide. Second, it damaged the purchasing power of investors, making it difficult to invest in cryptocurrencies, including the installation of ATMs. Finally, by making it more challenging for businesses to operate in the crypto industry amid increased operating costs.

As a result of the bear market and geopolitical tensions, the installation of Bitcoin ATMs worldwide slowed in 2022. Bitcoin ATMs allow users to buy or sell cryptocurrencies using cash or debit cards. They have become increasingly popular in recent years, often in countries where the use of cryptocurrencies is high. However, the bear market and geopolitical tensions affected the crypto industry’s growth, limiting the number of Bitcoin ATMs installed worldwide.

According to data BitcoinCasinos.com shared with BeInCrypto, more than 5,300 Bitcoin ATMs have been removed so far this year. The total number fell to around 33,800 worldwide.

Furthermore, the decline in the installation of Bitcoin ATMs was also due to increased regulatory scrutiny worldwide. Authorities and regulatory bodies became more concerned about using cryptocurrencies for illegal activities such as money laundering and terrorist financing. As a result, they introduced stricter rules for crypto-related activities, including the installation of Bitcoin ATMs. This made it more challenging for businesses to operate in the crypto industry, and reduced the number of Bitcoin ATMs installed worldwide.

The need for installations

Overall, countless factors led to a decline. Contrary to what some people assume, ATMs play a crucial role. Bitcoin ATMs can be important to people in the crypto world who are cut off from traditional banking, for several reasons:

1. Accessibility: These machines provide easy access to buying and selling cryptocurrencies, which is especially important for those who do not have access to traditional banking services. By using a Bitcoin ATM, people can quickly and easily buy or sell Bitcoin without the need for a bank account or other financial intermediaries.
2. Anonymity: Bitcoin ATMs can offer some degree of anonymity to users. Unlike traditional exchanges that require users to verify their identity, Bitcoin ATMs often allow users to buy or sell Bitcoin without providing personal information. This can be especially important for people who value privacy or who are concerned about their financial transactions being monitored.
3. Decentralization: Bitcoin ATMs provide a decentralized alternative to traditional financial systems. Since conventional financial institutions do not operate them, Bitcoin ATMs can allow people to participate in the crypto-economy outside of the traditional banking system.
4. Convenience: Bitcoin ATMs are usually available 24/7 and may be in convenient locations such as malls or convenience stores. This can make it easier to buy or sell Bitcoin on their schedule without visiting a physical exchange during business hours.

Overall, Bitcoin ATMs can provide an alternative for people in the crypto world who may have difficulty accessing conventional financial services.