Coinme CEO Neil Bergquist’s Projections for a Bitcoin ATM Market That Could Top $16 Billion Within the Next Decade

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As a seasoned researcher with a keen interest in the evolving digital finance landscape, I find myself increasingly fascinated by the surge of Bitcoin ATMs around the globe. Having closely followed the crypto market since 2014, I’ve witnessed firsthand the rollercoaster ride that this industry has been on.

In the past year alone, Coin ATM Radar reports that the number of cryptocurrency ATMs worldwide has surged by 17.8%, reaching a total of 38,279 machines. This growth spurt, following a challenging period that saw a net loss of 2,861 machines in 2023, signals a robust recovery and renewed interest in these physical gateways to the digital currency world. With 2,564 new cryptocurrency ATMs installed in 2024 so far, the industry is inching closer to its December 2022 peak of 39,541 machines.

Neil Bergquist, CEO of crypto exchange Coinme, sees this resurgence as just the beginning.

According to a recent article by Bergquist, it’s expected that the market for Bitcoin Automated Teller Machines will expand to reach an impressive $16.85 billion by the year 2033.

Bitcoin ATM Growth by the Numbers

In simple terms, more than 82% of all Bitcoin Automated Teller Machines (ATMs) are located in the United States, with Canada having only about 7.7%. This heavy concentration of Bitcoin ATMs in North America suggests a strong demand for easy-to-access cryptocurrency services in this region.

According to Bergquist, approximately 90% of the American population has a Coinme location nearby, which is about a 5-mile radius.

This degree of accessibility goes beyond what traditional banking systems offer in terms of geographical coverage.

Not only does the amount matter, but also where these Bitcoin ATMs are located. Instead of creating a brand-new network of machines, Coinme prioritizes integrating cryptocurrency functionality into preexisting Coinstar kiosks that people already recognize.

Crypto Automated Teller Machines (ATMs) are also popping up around the world now, and that includes Australia where their number has multiplied by almost seventeen times in just the past two years, reaching a total of 1,107 machines. If this trend continues, it won’t be long before Australia surpasses Europe‘s total of 1,584 crypto ATMs.

Since 2014, Neil Bergquist, who oversees the operations of one of the biggest cryptocurrency exchange networks in the U.S. at Coinme, has been surfing the crypto wave.

Originally, we were among the initial ten sites globally, but now we’ve effectively tackled the challenge of accessibility.

Expanding Use Cases

Bergquist contends that Bitcoin Automated Teller Machines (ATMs) play a pivotal role in facilitating entry of regular currency into the cryptocurrency market. These ATMs could provide financial services to individuals without access to conventional banks or those uncomfortable with traditional banking structures.

Various functions exist for these Automated Teller Machines (ATMs). According to Bergquist, they can be grouped into three main groups: remittances, payments, and investments. For remittances, Bitcoin ATMs could provide a quicker, less expensive option compared to conventional money transfer services. As per the World Bank’s latest report, the average fee for remittance transactions is approximately 6.35% of the sent amount.

Bergquist highlights that you can deposit your cash at a Coinme location, convert it into cryptocurrency, and then quickly and affordably transfer it to any destination, as an alternative to many current options.

The significance of this efficiency becomes especially clear when looking at the approximately $50 billion in cash remitted yearly from the U.S. to Latin America. Bitcoin Automated Teller Machines (ATMs) could serve as a digital conduit for these transactions, potentially transforming the way people transfer money internationally.

The case for payment systems, though still evolving, is picking up speed. A recent Deloitte survey of 2,000 top executives from U.S. consumer businesses revealed that a staggering 85% consider the obstacles in integrating cryptocurrencies as worth overcoming, anticipating their usage to increase. The greater their expectation for digital currency to become mainstream, the more they’re inclined to put resources into related infrastructure. Business leaders who foresaw a higher level of customer interest in digital currencies within the next year were also more likely to make these investments. Furthermore, 64% of merchants reported significant customer enthusiasm towards using digital currencies for transactions. They believe embracing digital currencies could broaden their consumer base, especially among younger demographics, improve customer service, and portray their brand as contemporary and relevant.

For those investors who view cryptocurrency as a means for storing value or protecting themselves from inflation, these ATMs provide a concrete method to access the crypto market. Purchasing Bitcoin with cash eliminates the complex and sometimes daunting process of establishing an account on a digital exchange platform.

But education remains a significant challenge, with many still not quite sure what crypto is, let alone how to use it. Coinme’s initiative, cryptoliteracy.org, aims to bridge this knowledge gap.

Each November, Bergquist shares, we release a study evaluating Americans’ fundamental understanding of cryptocurrency literacy. This assessment includes a foundational crypto literacy quiz, and unfortunately, many people fail it. However, our aim is to improve this situation. By providing more education about how cryptocurrencies address issues within our existing monetary system and financial service providers, we can make things better.

By the year 2033, it seems undeniable that Bitcoin ATMs will surpass an estimated $16.85 billion market value, indicating they’re not just a fleeting fad but potentially the start of a significant change in our financial interactions. These machines may serve as pioneers, linking the digital and physical realms of finance.

Bitcoin ATMs serve as local entry points for cryptocurrencies, allowing people to buy cryptocurrency conveniently during routine tasks like fueling up or grocery shopping. The sight of ‘Bitcoin Available Here’ piques curiosity about this emerging asset class and encourages people to explore crypto further. In a world where multiple digital currencies coexist, integrating physical and digital platforms will facilitate the exchange of crypto, making it smoother and easier to navigate the blockchain financial system.

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2024-11-09 16:14