cryptopolitan.com
- Bitcoin ATM installations slowed down in early 2022
- Regulation could be a possible cause of the slowdown
- The rate of Bitcoin ATMs installation is likely to surge with more crypto adoption.
The rate of Bitcoin ATM installations has generally decreased from levels seen in the past years, according to information provided by Coin ATM Radar. On the other hand, the current shift is anticipated to change this year.
Bitcoin ATM installation rate drops in 2022
A total of 1,817 crypto ATMs were installed worldwide throughout January and February 2022. However, in the same period last year, 2,435 crypto ATMs were put in operation, representing a 25% decline when compared. This could be an early sign that the demand for crypto ATMs is waning, and people turn to other alternatives to process crypto transactions. It’s still too early to tell for sure.
One possibility is that Bitcoin ATM operators feel the pressure of regulatory uncertainty. Several global authorities, including the US Government Accountability Office (GAO), has disclosed plans to tighten regulation on crypto ATMs while noting that these machines are being used for illegal transactions.
It will be interesting to see how the trend for ATM installations changes in the coming years. If regulation tightens in some countries, the ATM installations will likely continue to slow down. However, if the law becomes more Bitcoin-friendly, we could see a resurgence in Bitcoin ATM installations.
Bitcoin dominates in global crypto ATM
Despite this slowdown, about 36,069 crypto ATMs have been installed worldwide, and Bitcoin is still the dominant cryptocurrency in the transactions. Bitcoin ATM installations account for 59% of all crypto ATM installations. Between January and February 2020, Bitcoin Cash, Litecoin, and Ethereum were the top three coins concerning installations. However, this has changed in early 2022, with Bitcoin Cash falling to fourth place, replaced by Dash. Dash now occupies second place behind Bitcoin with 18% of installations, followed by Litecoin (16%), Bitcoin Cash (10%), and Ethereum has (8%).
Despite the current trend, there is still hope that Bitcoin ATM installations will reverse as we approach the end of the year, as the crypto market continues to gain more adoption.