Bitcoin, crypto-ATMs, and why they might be worth over a billion in 2028

Bitcoin, crypto-ATMs, and why they might be worth over a billion in 2028

The ease with which cryptocurrency ATMs allow users to buy and exchange digital assets has been one of the driving forces behind the surge in their adoption over the past year. It reportedly saw the installation of around 20,000 additional ATMs worldwide, and the trend is expected to continue growing, according to recent research.

The combined value of cryptocurrency ATMs worldwide hit $75.01 million in 2021, according to a recent report by Grand View Research. It further found that this is expected to expand at a compound annual growth rate (CAGR) of 59.2% from 2022 to 2028, by which time it will be valued at around $1.88 billion.

The ATM sector, much like the larger crypto-industry, is dominated by the leading digital asset Bitcoin, as it accounted for over 30% of the total revenue collected by ATMs in 2021. Interestingly, the report found that the increase in demand for BTC ATMs was driven by “the growing acceptance of Bitcoin as a payment method worldwide.”

Indeed, several large-scale retailers have embraced Bitcoin or other cryptocurrencies as a payment method in the recent past, including the likes of Walmart and AMC Cinemas. Moreover, support from traditional payment channels such as Paypal has also contributed toward this trend.

Other factors aiding the growth of crypto-ATMs also include their acceptance by governments such as El Salvador. The country installed over 200 crypto-ATMs after accepting Bitcoin as a legal tender last year. Additionally, efforts being pursued by ATM companies to mitigate cyber-attack risks have also added to their outlook as safe crypto-exchange platforms, the report said.

It also forecasted that the sector is currently dominated by the restaurant and hospitality sector, accounting for a revenue share of over 33%. However, it would be overtaken by the commercial spaces segment going forward.

A trend for the same can already be seen emerging, as the leading ATM manufacturer NCR Corporation acquired crypto ATM provider LibertyX earlier this week. This move has enabled its customers to buy and sell crypto assets on its more than 750,000 ATMs and digital touchpoints across 140 countries.

Similar recent developments have also pointed towards the expansion of crypto-ATMs beyond North America. This includes the installation of Uruguay’s first crypto-ATM earlier this month, with the same fully funded by the country’s government.

This is the most recent addition to Latin America’s growing crypto-ecosystem, as the region represents only 0.2% of global BTC ATM installations. Santo Blockchain is aiming to accelerate this growth further, as it has planned to purchase 300 BTC ATMs over the year and install them across the continent. The first recipient of 50 ATMs would be Panama, it was announced this week, with Costa Rica and Columbia next in line.

FTC warns of scam involving cryptocurrency ATM—and a QR code

The Federal Trade Commission (FTC) has issued a warning about a new cryptocurrency scam that involves QR codes.

The FTC says scammers are using impersonators to trick people into giving them money in transactions involving QR codes and cryptocurrency ATMs.

Scammers have increasingly turned to cryptocurrency in recent years, perhaps because it’s more difficult to track and transferable between currencies.

🆕 #ScamAlert: There’s a new spin on scammers asking people to pay with #cryptocurrency. It involves an impersonator, a QR code & a trip to a store (directed by a scammer on the phone) to send your 💰 to them through a cryptocurrency ATM. Learn more: https://t.co/xZ7uM31ycg — FTC (@FTC) January 10, 2022

Last summer, the Daily Dot reported that the esports powerhouse FaZe Clan was accused of being caught up in a “pump and dump” scheme involving crypto. Earlier this week, CNBC reported that securities regulators say cryptocurrency and other digital asset scams are the biggest threat to investors “by far.”

The FTC says targets of the latest scam may receive a call from someone claiming to be law enforcement, the government, or your utility company. The caller could also pretend to be an online romantic interest or someone saying you’ve won the lottery or another prize.

As with any scam, the caller eventually asks you for money. Those who seem amenable will be directed to a store or other business that has a crypto ATM. The scammer will remain on the phone throughout, the FTC says.

Once you reach the ATM, the scammer directs you to buy crypto. Then they send you a QR code with their address embedded in it, the FTC reports. You’re instructed to scan the code so that the money transfers to them.

“But then your money is gone,” the FTC says.

In its warning, the FTC stresses that “no one” from law enforcement, the government, a utility, or a prize committee will ask for payment via cryptocurrency.

“If someone does, it’s a scam, every time,” the agency said.

If you receive a call, email, text, or social media message—especially from a stranger—asking for advance payment for something via crypto or otherwise, it’s a scam.

The FTC asks people to report suspicious activity of this nature at reportfraud.ftc.gov.

Spain Eyeing on Becoming the Crypto ATM Hub

Spain is attempting to establish itself as a cryptocurrency powerhouse in Europe, and recent developments demonstrate that it is feasible.

This year, Spain will install 100 Bitcoin ATMs.

Bitnovo, a renowned Spanish bitcoin payment platform, has teamed with Eurocoin, Europe’s biggest electronic component provider. The collaboration will result in the installation of 100 cryptocurrency ATMs across the country by the end of the year.

With 199 Bitcoin ATMs now accessible in the country, Spain is the leading country in Europe in terms of Bitcoin ATMs. In 2022, 100 more Bitcoin ATMs will be installed, bringing the total to over 300.

The relationship with Bitnovo, according to Eurocoin CEO Fernando Dumont, is a deliberate step into the cryptocurrency market. He stated that he believes cryptocurrency will coexist with regular payment methods.

Spain intends to become Europe’s leading bitcoin country. Following the internet shutdown in Kazakhstan earlier this year, which impacted Bitcoin’s mining hash rate, Mara Muoz, a Deputy for the Spanish Ciudadanos political party, suggested a law to make Spain a crypto mining hub.

However, no discussion of the bill has taken place in the Spanish parliament since then.

In terms of total Bitcoin ATMs, Europe lags behind North America.

North America has the most Bitcoin ATMs in the world. There are already over 36,000 Bitcoin ATMs worldwide. North America, on the other hand, accounts for 94.9 percent of the total number of Bitcoin ATMs worldwide (the United States has 30,835 and Canada has 2,266).

How does a crypto ATM work?

To manage transactions, Bitcoin ATMs and other crypto ATMs employ an internet-based cryptocurrency gateway. In the case of a Bitcoin ATM, customers deposit cash, and the machine turns the cash into cryptocurrency and delivers the funds to your Bitcoin wallet, from where you send and receive all of your Bitcoin funds.

Bitcoin ATMs are one of the most secure ways to purchase, send, or trade Bitcoin. For starters, quick transactions shield you from the volatility of Bitcoin. Second, passwords and two-factor authentication secure your account from unauthorized access. Here are the security precautions that operators and users take to keep their funds safe.

Europe accounts for 4%, with the rest of the world accounting for the remaining 1%. Spain leads the way in Europe with 199 Bitcoin ATMs, followed by Switzerland with 142. Asia, Africa, and South America lag considerably behind the rest of the world.

Thank you for reading my article. I hope you found it useful and interesting. Stay tuned for more information regarding tech, cryptocurrency, and other latest, interesting news.

Cryptocurrency is suddenly everywhere — except in the cash register

The push is starting from a modest place. Bitcoin transactions on Cash App have grown over the past two years, the company has said. But fees from crypto transactions made up less than 4 percent of the company’s gross profit in its third quarter. And the volume of bitcoin transactions on the platform fell by roughly half from the first quarter of the year to the third — a decline that Wolfe Research analyst Darrin Peller attributed to consumers feeling less flush after spending or investing stimulus cash. Bitcoin “has been very slow to be adopted by consumers,” Peller said.

NCR Acquires LibertyX and Integrates Crypto Services Into 750K ATMs Globally

Bitcoin and cryptocurrencies are one step closer to mainstream adoption as NCR Corporation, a leading manufacturer of automated teller machines (ATMs), has enabled customers to buy and sell crypto assets on its more than 750k ATMs and digital touchpoints across 140 countries.

NCR Acquires Crypto Firm LibertyX

The development comes after NCR announced the acquisition of ATM network company and cryptocurrency software provider LibertyX for an undisclosed amount. NCR initially outlined plans to acquire LibertyX last August.

The crypto software provider already has existing partnerships with independent ATM operators. This includes Cardtronics, which owns and manages ATMs in the United States at locations like supermarkets, pharmacies, and convenience stores.

Since LibertyX digital asset solution currently runs on ATMs, kiosks, and point-of-sale (POS) systems, NCR will utilize its capabilities to provide enhanced crypto solutions to customers through its physical and digital platforms.

The solution is available to restaurants, retailers, and banks through NCR’s digital wallet and mobile applications. Clients will be able to purchase and sell digital currencies, accept crypto payments, and conduct cross-border remittances.

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Speaking on the acquisition, Don Layden, EVP & President, Payments & Network, NCR Corporation, said:

“The completion of this transaction enhances our ability to provide digital currency solutions and capabilities that help run our customers’ businesses. We are pleased to welcome LibertyX and its outstanding team to NCR.”

Crypto Adoption

Meanwhile, as cryptocurrencies continue to gain relevance, mainstream companies are getting involved and pushing adoption by making it easier for users to access, invest, and spend digital assets every day.

In August 2021, digital currency broker Voyager Digital Ltd acquired crypto payment platform Coinify for $84 million as part of its strategic plans to make such assets accessible globally.

Similarly, fintech giant Square made it easy for Afterpay’s 3.6 million customers to purchase bitcoin after acquiring the leading “buy now, pay later” (BNPL) platform for a whopping $29 billion in August 2021.

Featured Image Courtesy of NCR