Bitcoin ATMs have experienced their largest decline in history in March 2023, with more than 3,600 crypto ATMs going offline, according to data revealed by a Bitcoin ATM tracker. This comes after a net decrease in installations was witnessed in the past few months, which is a rare occurrence. The decline in installations of Bitcoin ATMs is an indication of the current bearish sentiment in the crypto sector. The decrease in the number of ATMs globally could lead to a reduction in the adoption of cryptocurrencies, and this could have an impact on the value of Bitcoin and other altcoins.
Despite the decline in installations, General Bytes, BitAccess, and Genesis Coin remain the leaders in physical crypto ATMs. However, General Bytes experienced security issues in mid-March, which resulted in the loss of customers’ funds. The company has promised to reimburse the losses incurred by its customers.
Another report on the nations with the highest Bitcoin ATM usage rates reveals the disparities that exist between countries hosting more crypto ATMs and those where the population is more inclined to embrace alternative financial solutions. The report analyzed the number of Bitcoin ATMs, cash payments, unbanked population, % of crypto ownership, and total population in 14 countries with different adoption rates.
The study showed that the level of crypto adoption depends on how the population is connected to cash payments and bank accounts. For instance, Mexico has a high population of people without access to bank accounts, but ranks second on the list with 46 Bitcoin ATMs. The adoption rate of crypto assets is also high, with 3.4% of the Mexican population owning them. On the other hand, the Nordic countries of Sweden, Denmark, and Finland, which have nearly 100% of their population connected to traditional banks, have a record 1% cash payment rate.
It suggests that countries with a high number of unbanked populations tend to have higher adoption rates of crypto assets. This is evident in South Africa, where 31% of the population is unbanked, and yet 21 crypto ATMs have been installed, with 10% of the population owning some form of cryptocurrency. In contrast, developed countries like Norway and Denmark have lower adoption rates.
The decline in Bitcoin ATMs installations and the increase in the number of removals compared to installations could have a significant impact on the crypto sector. The decline could result in reduced adoption rates of cryptocurrencies, which could affect their value. Moreover, it could make it harder for individuals to buy and sell cryptocurrencies, which could lead to a further decline in the sector.