Bitcoin Forum

The crypto automated trading machine (ATM) market will grow to $114.5 million by 2023, according a report published Sept. 4 on ResearchandMarkets.com.

Researchers expect the cryptocurrency ATM market to grow from $16.3 million in 2018 to $144.5 million by 2023, citing a compound annual growth rate (CAGR) of 54.7 percent from 2018 to 2023.

According to the study, significant growth during the forecast period will be from two-way ATMs, which let customers change digital currency into fiat and vise-versa using a single machine. The study says that the machines’ functionality is the key driver of two-way crypto ATMs’ popularity among users.

The authors of the report highlight rapidly expanding capabilities in developed countries like the U.S., Germany, and Japan, and the increasing rate of crypto adoption as prime growth factors in the crypto ATM market.

The North American crypto ATM market will purportedly hold the largest share of the crypto market by 2023. The presence of a large number of crypto ATM hardware and software providers, as well as a favorable investment environment will facilitate the dominant position of the U.S. in the market.

At the same time, the study also identifies regulatory uncertainty, in addition to lack of awareness and technical understanding of cryptocurrencies as factors that can limit the growth of the crypto ATM market. 

Targeting mainstream adoption, Ontario-based Bitcoin (BTC) and Ethereum (ETH)  ATM manufacturer LocalCoinATM installed a batch of ETH ATMs in three different locations in Canada, including Toronto, Brampton and Etobicoke in 2017. That year South Korean ATM manufacturer Hyosung officially integrated BTC into its international ATM models.

While the crypto ATM market is projected to grow over the next five years, traditional ATM manufacturers consider digital currencies a threat to their business. In March, the world’s largest ATM operator Cardtronics pinpointed cryptocurrencies among the major risks to their business in an annual report. Consumer behavior analysis reportedly showed a significant shift in preferred payment methods, with more customers now choosing electronic forms of payment over traditional physical banknotes, leading to a decline in the use of ATMs.

Source: https://cointelegraph.com/news/report-crypto-atm-market-expected-to-grow-to-1445-million-by-2023

If the author is basing his prediction on the German market, his prediction
is completely ridiculous. If you want to install a Bitcoin ATM in Germany, you need a permission
from a regulatory body called "BaFin". Getting this permission is such a hassle
for any aspiring Bitcoin start-up that there are exactly zero Bitcoin ATMs
in the whole country. I don´t see this changing anytime soon. Therefore I
highly doubt that Bitcoin ATMs in Germany will grow as much as much
the author claims.

Totally agree with Topic Starter. Few days ago tried Bitcoin ATM in Poland for the first time in my life. For sure, spreading of bitcoin ATM will help crypto mass adoption.

Do you think that paying premium fees will influence people to used them more? NO. I guess if you have no other options people will go to ATM or perhaps just to get a feel of it. As I have said in the previous thread about Bitcoin ATM, the only advantage I see is that it less riskier as compare to meeting a totally stranger in a place to trade P2P.

There is a lot of regulation going on in the market, and I do not think these machines will be far from it, so I expect some documents will be requested before you buy/sell.
The only advantage of these machines is the possibility of buying anonymously which will end in the future, so I do not expect this market to grow.
Also, paying a lot of fees will make people less interested.

It's a niche product at this stage, which explains why the fees are pretty high. As these ATMs generate more consistent volumes, the fees will decline significantly and that will stimulate even more usage.

I however don't believe the fees will ever fall below 2% since there will always be operational and licensing costs. Depending on the state or country, licensing in some cases can exceed the $100,000 mark annually.

There is so much involved just to keep these ATMs running legally and cost wise, that I personally wouldn't want to get involved in this industry if I was ever offered the opportunity to do so.

It's positive and very possible to achieve this expected for crypto grow ATM market in the year 2023, 5 year form now are have enough time to wrking out this project by the every crypto ethusiasm to support this eproject for crypto ATM but need to be ready their have many struggles need to face to achieve the approval for the crypto AtM.

I wouldn't really correlate the amount of bitcoin ATMs or the volume of bitcoin ATM transactions with actual adoption of BTC.

So even though it's nice to have Bitcoin ATMs around both as a practical and promotional tool, their growth isn't necessary for bitcoin's adoption. Besides, as we move more and more digital even with fiat currencies, it's likely that physical bitcoin ATMs will just become a novelty after a while as online exchanges are just way more practical use, and have better rates overall.

Also, it will be interesting to see how countries will respond to these ATMs with regulations, whether IDs will be strictly needed for each purchase. We've already seen Russia seize some bitcoin ATMs. Other countries may restrict access to them as well.

I´m not sure if a significant decline in fees
is even possible. After all most Bitcoin ATMs are simply
forwarding the orders to a Bitcoin exchange and therefore
have to be more expensive than the exchanges by definition.

Besides, there are often costs for licenses and for the location,
which adds a few percentage points to the rate, too. In rare circumstances where
the operator owns the place where the ATM is located anyway it might be possible,
but otherwise I don´t think the Bitcoin ATM fees will decline much if
they decline at all.