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Learning & News => News related to Crypto => Topic started by: sirty143 on January 02, 2024, 10:27:35 AM

Title: Unprecedented Downturn: Over 5,700 Crypto ATMs Decommissioned in 2023, Marking F
Post by: sirty143 on January 02, 2024, 10:27:35 AM
Unprecedented Downturn: Over 5,700 Crypto ATMs Decommissioned in 2023, Marking First Annual Decline

(https://i.imgur.com/VqZZQsfm.jpg)

Crypto automated teller machines (ATMs) have experienced a decline this year, marking the first downturn since October 2013, with the total count dipping from 39,350 to the present 33,620. Approximately 5,730 cryptocurrency ATMs have been decommissioned... See more for yourself here (https://news.bitcoin.com/unprecedented-downturn-over-5700-crypto-atms-decommissioned-in-2023-marking-first-annual-decline/).

Your opinion is greatly appreciated.
Title: Re: Unprecedented Downturn: Over 5,700 Crypto ATMs Decommissioned in 2023, Marking F
Post by: bitbit97 on January 02, 2024, 10:44:19 AM
Imho that was expected. There are numerous reasons why there would be more decrease in number of crypto ATMs. Main reason would be fees. I havent checked every single ATM on Earth, but the one I have tested were charging around 10% fee. That is a lot. When I use credit card and mobile and get same result with 1-3% fee. Second reason - some of ATM  require KYC when doing exchange. It is not a detailed one, but some were asking for mobile number verification. That is already a huge step of deanonymization. Plus all those cameras around. Third reason (that might be individual) - ATM I've checked accept cash in exchange for BTC. People dont operate with cash much. People dont carry much cash daily.  Going to ATM, to exchange 20-100 EUR bill to BTC. I've got more interesting things to do in my free time :)
Title: Re: Unprecedented Downturn: Over 5,700 Crypto ATMs Decommissioned in 2023, Marking F
Post by: Zed0X on January 02, 2024, 01:16:09 PM
I was looking for the reason for the decommissioning but it wasn't specified in the article. Yeah, the service fee is probably the main reason but I still want to know is how many of the decommissioned ATMs were providing two-way service (allowing the buy and sell of BTC). I think they are more useful for cashing out in case a Bitcoiner desperately needs some cold cash.

Strategic location could be one. Maybe the closed BTMs (Bitcoin ATMs) were located in places where foot traffic isn't that good.
Title: Re: Unprecedented Downturn: Over 5,700 Crypto ATMs Decommissioned in 2023, Marking F
Post by: Fivestar4everMVP on January 02, 2024, 02:18:03 PM
Quote from: Zed0X on January 02, 2024, 01:16:09 PM
I was looking for the reason for the decommissioning but it wasn't specified in the article. Yeah, the service fee is probably the main reason but I still want to know is how many of the decommissioned ATMs were providing two-way service (allowing the buy and sell of BTC). I think they are more useful for cashing out in case a Bitcoiner desperately needs some cold cash.

Strategic location could be one. Maybe the closed BTMs (Bitcoin ATMs) were located in places where foot traffic isn't that good.
I don't think  it's all about strategic location, bitcoins ATMs comes with some really high fees to transact on it, whether you want to buy or sell bitcoin, you will have to pay a hefty charge, and looking at such fees, p2p becomes a better option for traders who wish to cash in on some of their bitcoin, so instead of having to pay high fees to bitcoin ATMs just to cash in a few dollars in bitcoin, it's become much more better to do that through p2p.

And also consider that p2p of today is no longer as it used to be in the old days, alot of have changed, with several high standard centralized exchanges offering p2p market to their users, transacting in p2p have become alot more easier and safer than it used to be.

So, for me, I think the reason for the decline in the number of functioning bitcoin ATMs around the world, is due to the fact that they have lost alot of users, people now prefer p2p instead of ATMs, so, I do not think it's about strategic positioning or whatever related to that.
Title: Re: Unprecedented Downturn: Over 5,700 Crypto ATMs Decommissioned in 2023, Marking F
Post by: babygun on January 03, 2024, 12:37:24 PM
Quote from: bitbit97 on January 02, 2024, 10:44:19 AM
Imho that was expected. There are numerous reasons why there would be more decrease in number of crypto ATMs. Main reason would be fees. I havent checked every single ATM on Earth, but the one I have tested were charging around 10% fee. That is a lot. When I use credit card and mobile and get same result with 1-3% fee. Second reason - some of ATM  require KYC when doing exchange. It is not a detailed one, but some were asking for mobile number verification. That is already a huge step of deanonymization. Plus all those cameras around. Third reason (that might be individual) - ATM I've checked accept cash in exchange for BTC. People dont operate with cash much. People dont carry much cash daily.  Going to ATM, to exchange 20-100 EUR bill to BTC. I've got more interesting things to do in my free time :)

I think the main reason is the fee, I was tempted to try one in the aiport of Amsterdam but the fee was 8% and that is just way too much. Don't know if I would need to have done some KYC checks as I stopped after I saw the fee lol.
Title: Re: Unprecedented Downturn: Over 5,700 Crypto ATMs Decommissioned in 2023, Marking F
Post by: Yamane_Keto on January 03, 2024, 01:59:05 PM
Quote from: Zed0X on January 02, 2024, 01:16:09 PM
I was looking for the reason for the decommissioning but it wasn't specified in the article.
I think the reason is hacker attacks, as the 0-day bug was exploited, which caused the loss of more than $1.5 million worth of bitcoin and the return of thousands of ATMs from Crypto ATM manufacturer General Bytes, in addition to many hacker attacks during this year.

https://therecord.media/crypto-atm-manufacturer-general-bytes-hacked

some bankruptcies due to debt accumulation, interest rates, and high operational costs may be other reasons.