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Is It True That Bitcoin ATMs Are So Wide-Spread?

04.02.2016 Биткоин-банкоматы так широко распространены 
Within a short time Bitcoin has risen to international fame. In the course of time there emerged a necessity of machines to trade cryptocurrency. The history of Bitcoin ATMs began in 2013. Robocoin became the pioneer in this field. The novelty was successfully demonstrated on October 28 in Vancouver. In a very short time the machine gained popularity among population of Canada.
 Shortly after, new Bitcoin ATM manufactures appeared in the market. As of now there are 540 machines.
 The geography of Bitcoin ATMs’ locations is rather interesting. Most of them (86%) are located in the USA and Europe; however, many machines are out of service.
  Optimistic forecast of Coin ATM Radar predicting quick increase in number of Bitcoin ATMs in 2015 failed. Apparent burst of activity was recorded only in January. The number of machines reached 540.
  What are the reasons behind the decline in Bitcoin ATM’s rate of expansion? Financial analysts noted several important factors:
  • High price of machines.
  • The need to determine successful placement locations.
  • The need to improve regulatory mechanisms.
  • Development of alternative services.
  • Competition for market shares between competitors.
Despite obvious difficulties, the increase in demand for such machines is expected. The major reason of rise of popularity is stabilization of the exchange rate of the popular cryptocurrency.
 The leader of the market segment is North America, where 57% of total amount of Bitcoin ATMs is located. 216 machines are located in the USA. A little less they are spread in Canada (96). Europe falls behind significantly. First machines have just recently appeared in ex-USSR countries, Latin America, Middle East and Asia (except Hong Kong, where 13 machines operate). The only Bitcoin ATM in Africa located in Johannesburg (SAR) has disappeared from the map.
  Almost 60% of ATMs operate one-way, only selling Bitcoins. The top list of manufacturers looks as follows:
  • Lamassu — 140.
  • Genesis Coin — 134.
  • BitAccess — 71.
  • General Bytes — 66.
Bitcoin ATMs manufactured by Robocoin are the most expensive. The price of these machines is up to $35,000. Surprising is a price range. For instance, the price of the cheapest machines Skyhook is only $1,000.
 It is expected the trend of Bitcoin ATMs’ functional enhancement. For example, a machine located in Chicago offers to purchase Litecoins as well. Some devices located in different countries sell dogecoins and blackcoins.
 The continuous growth of exchange machines’ commission (the average rate is 7.17%) doesn’t influence the popularity of cryptocurrencies. The number of people investing in virtual monetary units increases yearly.
 Bitcoin ATMs allow customers getting rid of a necessity to fill in applications. To buy cryptocurrency there is no need to indicate a personal bank account.
 The exchange of monetary units via Bitcoin ATMs is highly profitable business, advantages of which were quickly appreciated by many businessmen. Commercialization accelerated the process of machines’ distribution. Despite rather complicated establishment process, many machines were dismantled due to inexpediency of their operation.
 Reports concerning Bitcoin ATMs and their distribution are single-sided. There is no information about number of dismantled or non-operating machines. Only launching of new machines is in the limelight. De facto the number of operating ATMs is fewer than 540. Let’s cite a typical example. According to CoinFox, four out of five machines located in New England were suspended in November 2015.
 According to recent data, the number of operational machines is no more than 100. The conflict between official data and reality let CoinFox management conduct a large-scale survey. The research was carried out in countries and regions where Bitcoin ATMs are widely spread. 
There are 4 Bitcoin ATMs in Florida (USA), 2 - in Miami and 2 – in Orlando. Only two machines in Miami are operational. Few positive user reviews are not indicative of popularity.
 Texas leaves Florida behind on number of machines (9). Four machines located in Dallas and Fort Worth (two of them were placed in December) work properly. Others are out of service.  
There were nine machines in Italy. According to researches, their status at the moment is as follows:
  • One machine is out of service.
  • There is no any information about other three machines.
  • Five machines (located in different cities) continue servicing customers.
There were twelve Bitcoin ATMs placed in Japan. Three of them are out of service for a long time, status of others is indefinite. 
 The situation in Netherland is different. Four of seven ATMs work properly. Operational status of two machines is not clear; one ATM is broken and should be replaced in the nearest future. Two exchange machines (property of BitPay) are not available for outsiders.
 
 The highest number of faultless ATMs (around 67%) is registered in Japan. In the USA the quantity of ATMs is only 20%. According to researches, the official data concerning the major distribution of Bitcoin ATMs are contrary to the facts.