CRYPTOCURRENCY ATM MARKET ANALYSIS

Cryptocurrency ATM Market: Medium of exchange that utilizes cryptography for secure transactions and control additional currency unit creation

Cryptocurrency ATMs are the easiest means to buy cryptocurrencies, which also support selling of the digital currencies. Owing to their capability to support multiple forms of cryptocurrencies and ability to support any national currencies across the globe, these machines have gained significant traction over the past few years. Prominent growth factor fueling demand is the proliferation of these digital assets or currencies, across the globe and growing acceptance of these decentralized means of transactions

High demand for digital currencies is expected to drive the cryptocurrency market growth

Cryptocurrencies are driven by several advantages over the conventional currencies such as the limited supply, growing number of investors, growing user confidence, growing mining complexity, and substantial support by the media. In October 2013, Robocoin machine was introduced as the world’s first publicly available bitcoin machine to improve the transaction ability. The machine witnessed 348 transactions, in its first eight days of installation with an average transaction value of USD 273. In its first installation, the (ROI) reported was less than a month.

Rising ROI Along With the Capability of the Two-Way Transactions are Expected to Fuel the Overall Industry Growth during the Forecast Period

Rapid increase in the number of ATMs every year has forced the ROI to set back, however, it is largely dependent on the location of deployment of the Bitcoin Automated Teller Machines (BTMs). According to Coherent Market Insights, on an average the most populated or urban areas have the highest number of transactions, that help in generating complete ROI within spans of less than a year, even if the number of visitors per day is around 1-2. According to Coherent Market Insights analysis, the average number of new installations are expected to increase past 14 per day by 2025 driving the volume growth at over 44.6% CAGR over the forecast period. Moreover, according to Coin ATM Radar, the total number of deployments reached to around 1730, as of October 27, 2017, due to high ROI and increasing popularity of the digital currencies. Also, Coin ATM Radar estimated 4.43 Bitcoin ATMs installations per day in the last seven days in October 2017.

The global cryptocurrency ATM market is estimated to be valued at US$ 13.99 million in 2017 and is expected to witness a CAGR at 45.8% during the forecast period (2017 – 2025).

Figure 1. Global Cryptocurrency ATM Market, North America Trends

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Source: Coherent Market Insights Analysis (2017)

Substantial increase in costs legal costs are expected to be the major hindrance in the cryptocurrency ATM market growth

Compliance to the existing distinct regulatory requirements from county to country, these are among the most underestimated expenses which also contribute to significant difficulty for the users in deployment. Basic level of registration and compliance requirements require an upfront amount of US$ 5,000 and the same amount annually to maintain the operations. For businesses running multiple machines, the cost include an upfront compliance requirements of over US$ 15,000 with around to US$ 10k to maintain the operations. Additional costs also include hiring a dedicated compliance officer, whose salary can be estimated in the range of US$ 50k to 100k annually. Moreover, there are bigger companies which have reported higher expenses for these compliances and maintenance of operations. Moreover, acceptance of the technology and regional government is expected to be among the prominent other factors that will continue to hinder the industry growth through the forecast period.

North America dominated the global cryptocurrency ATM market share by volume in 2016 accounting for 73.21% of the global industry in 2016

Due to high concentration of deployments in U.S. and North America, North America has remained the most dominating region in terms of both value and volume over the last few years, is expected to dominate the industry share through the forecast period. North America was followed by Europe, Asia Pacific, Latin America and Africa.

Top industry participants in the cryptocurrency ATM market in order of their volume share are Genesis Coin, General Bytes, Lamassu, Bit Access, Covault, BitXatm, BTC facil, Skyhook, and LocalBitcoins.