The installation of Bitcoin (BTC) ATMs marked a new comeback as June 2022 saw a reversal of a five-month downward trajectory for the first time this year.
Global ATM installations worldwide have steadily declined throughout the year, with May recording the lowest number of ATM installations at 205. However, in June, more than 882 ATMs were installed in just the first ten days.
As you can see from the chart above, the drop in May 2022 reached levels last seen three years ago in 2019. Over the past two years, in 2020 and 2021, the number of Bitcoin ATMs has grown steadily thanks to more favorable regulatory conditions amid a favorable market, with many cryptocurrencies hitting their all-time highs instantaneously.
In addition, the use of bitcoin as legal tender in El Salvador contributed to a sharp increase in the number of installations of cryptocurrency ATMs last year. China, which has put a blanket on cryptocurrency trading and mining, has also contributed to a temporary slowdown in global ATM installations. Surprisingly, despite regulatory hurdles, China has emerged as the second largest Bitcoin mining hub despite the cryptocurrency ban.
The peak of installations of crypto ATMs occurred in 2021, and in December 1971 ATMs were installed in a month. However, until June 2022, those numbers fell by 89.75% by May, followed by a rapid recovery the following month.
According According to the Coin ATM Radar scale, based on data collected over the past two months, on average around 23 crypto ATMs are installed daily around the world.
The data also confirms that there are currently 38,000 active ATMs installed worldwide. Crypto ATMs serve an important purpose for bitcoin and the crypto economy, allowing users and investors to exchange their fiat currencies for bitcoin and vice versa.
Of the total, the US accounts for 87.9% of the entire crypto ATM network, i.e. 33,403 ATMs. Notable producers that lead this space in terms of market share are Genesis Coin (40.9%), General Bytes (21.6%), BitAccess (16.1%), Coinsource (5.4%) and Bitstop. (4.8%).
While ATM transactions do not contribute to the overall liquidity of the Bitcoin network, they do help investors purchase crypto assets in exchange for fiat currencies. As a result, the presence of local ATMs with crypto-currencies contributes to the spread of crypto-currencies.
Similarly, El Salvador has witnessed a surge in tourism by adopting bitcoin as legal tender. According to reports, tourism in El Salvador has grown by 30% since the introduction of the Bitcoin Law.
The fall in the price of bitcoin does not affect El Salvador: “It’s time to buy more,” MP Dania Gonzalez says.
In a recent discussion with Cryptooshala, Dania Gonzalez, an MP for the Republic of El Salvador, recently revealed the country’s plan to buy more bitcoin amid falling prices.
“What Naib Bukele did was buy bitcoin and make a profit at a certain strategic moment,” Gonzalez said.
González also pointed out that El Salvador’s President Nayib Bukele’s strategy has already proven effective in terms of socio-economic impact, citing two businesses – a veterinary hospital and a public school – made possible by a calculated investment in BTC.
Credit : cointelegraph.com