Fun

Crypto ATMs to resurge once Bitcoin ‘FOMO’ hits full swing, says CEO

News Feed - 2024-03-29 08:03:00

Jesse Coghlan47 minutes agoCrypto ATMs to resurge once Bitcoin ‘FOMO’ hits full swing, says CEOCrypto ATM installs declined in 2023, but a post-halving Bitcoin price growth spurt should see the space rebound, says Brandon Mintz.1999 Total views2 Total sharesListen to article 0:00InterviewOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin ATMs will likely see a global acceleration in installations after the Bitcoin halving, a period when crypto FOMO (fear of missing out) typically hits a fever pitch, according to the boss of a major Bitcoin ATM operator.


In 2023, crypto ATM installs had their first-ever yearly decline in a decade, owing to a bear market likely exacerbated by the collapse of several crypto firms.


However, Bitcoin Depot CEO Brandon Mintz notes that 2024 has already started with a bang, with 1,469 crypto ATMs installed in just the first three months, compared to the over 3,000 removed by around the same time in 2023, according to data from CoinATMRadar.


“It’s looking really positive that the industry continues to see a lot of growth in kiosk count,” Bitcoin Depot CEO Brandon Mintz told Cointelegraph.Over 400 ATMs have been installed between March 1 and March 27. Source: CoinATMRadar


Mintz is now tipping an industry-wide ATM rebound with Bitcoin (BTC) back in swing, which has already twice beaten its all-time high in March.


In past bull markets, Mintz noted that “later in the cycle, especially that period of FOMO that starts happening,” is when crypto adoption surges and, with it, brings more customers.“The adoption rate is really helpful because if more people are buying Bitcoin, then a portion of those are likely going to Bitcoin ATMs.”


That, however, typically comes later in the cycle and “it’s still pretty early,” according to Mintz.


“We aren’t even at the halving yet,” he said, mentioning the event slated for late April when Bitcoin’s mining rewards are cut 50%.


“In the past, more of the uptick we’ve seen has been after the halving,” he added. “After the halving is when the price skyrockets the most, and that’s when the FOMO phase starts.”


While the ATM count has recently climbed, Mintz claims over the past 18 months, the number of ATM operators has dropped. One of the largest was the 5,000 ATM-strong operator Coin Cloud, which went bankrupt in February 2023.


“A lot more of them were struggling and went out of business than was shown publicly,” he said.


The drop “happened pretty quickly” after crypto exchange FTX collapsed in November 2022 and took the crypto market with it, he added.


Bitcoin Depot’s fourth quarter and full 2023 results released on March 25 saw full-year revenues up 7% year-on-year to $689 million, though net income dropped 54% to $1.6 million.


It also bought 900 ATMs to install in the first quarter of 2024 and has plans for 940 ATMs to go live in convenience stores in 24 United States states.


According to CoinATMRadar, the Bitcoin ATM operator shares the market with a small number of other operators. The runner-up rival operator Coinflip has just over half that with over 4,200, while Bitstop is third with over 2,500.Spot Bitcoin ETFs are no bother


Of the 37,001 crypto ATMs in the world, the United States is home to nearly 83% of them, with over 30,600, per CoinATMRadar.


In January, the U.S. also approved spot Bitcoin exchange-traded funds (ETFs), which some have hailed as an adoption catalyst for institutions and retail punters looking to get into Bitcoin.


Mintz was unshaken by what impact the ETFs could have on Bitcoin ATMs. “We view it as a totally different customer base,” he said.


Related:Bitcoin ATM flaw could’ve given hackers ‘total control’


“A large portion of our customer base transacts primarily in cash or only in cash because they’re underbanked or unbanked,” he added.


On the other hand, Bitcoin ETF buyers are “more high-income individuals with brokerages and brokers.”


“[The] vast majority of all of our customers make less than $90,000 to $100,000 a year, so our customer base is not that likely to have a brokerage account or a broker and has not been likely to have just been sitting on the sidelines waiting for [an ETF] when it’s so easy to just buy through a Bitcoin ATM,” Mintz said.


Instead, he thinks the ETFs driving Bitcoin’s price higher could mean more ATM usage as Bitcoin adoption climbs.“If adoption increases, we think it likely translates to increased usage of Bitcoin ATMs. So in the grand scheme of things, I think it is way more helpful to us in our industry than it is in terms of impacting us in a negative way.”


Big Questions:How can Bitcoin payments stage a comeback?# Bitcoin# ATM# Business# CoinATMRadar# AdoptionAdd reaction

News Feed

Federal Reserve Considers Creating a Separate Entity for Cash Injections
Federal Reserve Considers Creating a Separate Entity for Cash Injections While American President Donald Trump wages war with Iran, the U.S. Federal Reserve has continued to inje
Savannah Fortis14 hours agoSouth Korea to pilot CBDC in one of these three cities, not SeoulSouth Korea pushes forward with its CBDC pilot and targets three potential test regions for issuing and distributing the digital
Binance and its detained US exec face more charges in Nigeria
Helen Partz11 hours agoBinance and its detained US exec face more charges in NigeriaAs Nigerian authorities levied more charges against Binance, the exchange issued a statement urging the regulators to let go of its U.S.
Mike Bloomberg’s 2020 Finance Policy Proposes Strict Bitcoin Regulations
Mike Bloomberg"s 2020 Finance Policy Proposes Strict Bitcoin Regulations The 2020 U.S. Presidential candidate Michael Bloomberg addressed the subject of cryptocurrencies and init
Spanish Crypto Exchange 2gether Won’t Reimburse All Stolen Funds From the 2020 Hack
Spanish Crypto Exchange 2gether Won"t Reimburse All Stolen Funds From the 2020 Hack Spanish cryptocurrency exchange 2gether has announced that it won’t com
Houston Rockets Partner With Bitcoin Company NYDIG in Sponsorship Deal
Houston Rockets Partner With Bitcoin Company NYDIG in Sponsorship Deal NBA basketball team the Houston Rockets has partnered with NYDIG, a leading bitcoin solutions provider, to be
Solana Forms Higher Low: Charging Toward Range Highs?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Founder of Bitmain Rival Held by Police Over Possible IP Dispute
Zuoxing Yang, founder and CEO of Shenzhen-based bitcoin miner maker MicroBT, is being held by local police to assist an investigation, CoinDesk has learned. The investigation is lik
XRP ETF At 83% Approval Odds—Is The SEC Losing Grip?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Macro Investor Dan Tapiero on Crypto Adoption: Emerging Economies Ahead of Developed States
Macro Investor Dan Tapiero on Crypto Adoption: Emerging Economies Ahead of Developed States Bitcoin and gold holder Dan Tapiero, says it is still early to talk o
NYDIG to Provide the New York Yankees With Bitcoin Payroll Services
NYDIG to Provide the New York Yankees With Bitcoin Payroll Services On July 14, 2022, the bitcoin company NYDIG, a subsidiary of Stone Ridge, announced that the firm inked a multi-
Prashant Jha11 hours agoFormer Celsius CEO Mashinsky seeks dismissal of FTC caseThe former Celsius CEO is currently out on bail facing multiple charges of criminal fraud and market manipulation from various U.S. regulato