How The COVID-19 Pandemic Is Accelerating The Bitcoin ATM Boom
With so many businesses facing significant losses over the last several months due to the COVID-19 pandemic, companies that manage or handle cryptocurrencies, especially Bitcoin, have, in contrast, seen steady growth. As social distancing appears to be the “new normal,” the world is witnessing a resurgence of physical kiosks and other automated services. While Bitcoin ATMs and point-of-sale services were already on the rise in terms of usage rates and profitability, the pandemic seems to have further spurred on that growth.
The Effects of the Pandemic on Bitcoin ATMs
The majority of Bitcoin ATMs housed within essential businesses like convenience stores, grocery chains, and financial service centers have remained open throughout shelter in place orders. Companies that offer Bitcoin ATMs and teller services like DigitalMint have seen continued growth and steady machine usage. In fact, despite a small minority of locations temporarily reducing hours due to concerns surrounding the pandemic, point-of-sale providers like DigitalMint have still been able to launch dozens of new Bitcoin ATMs even during these unprecedented times.
Although Bitcoin ATM providers saw an initial decline in transactions at the onset of COVID-19, data suggests substantial increases in Bitcoin transaction frequency and size throughout the pandemic. Even during these challenging economic times, and maybe even as a result of such economic uncertainties, data proves that cryptocurrencies, especially Bitcoin, are essential, in their own right, as vital payment systems.
Of course, all this is not to say that the pandemic has not altered Bitcoin ATMs in any significant way. For instance, cleaning and sanitizing physical kiosks is much more frequent and stringent following recommended safety guidelines to limit the spread of COVID-19. Bitcoin ATM providers must continuously communicate with location partners to ensure proper safety procedures are being followed consistently. Despite this new focus on stricter cleanliness, Bitcoin ATM usage rates remain high.
Why Bitcoin ATMs Are Faring So Well
There are three primary reasons for this acceleration of the Bitcoin ATM boom during the COVID-19 pandemic:
- Social Distancing Makes Automated Servicing More Desirable – Since safety guidance recommends social distancing and limited social interaction, engagement with machines instead of people is preferred, in some cases. With ATMs sanitized and disinfected regularly—and no actual human interaction taking place, the risk of germ exposure is greatly reduced.
- Market Volatility Has Helped Increase Demand for, and Value of, Bitcoin – With the pandemic creating major economic uncertainty and strife, the stock market has seen much unpredictability, encouraging many investors to seek alternative investment options like Bitcoin.
- Traditional Financial Institutions Were Not as Prepared or Responsive During the Pandemic – Many traditional banks reduced their operating hours, limited their customer service offerings, presented customers with excessive wait times for service, and imposed restrictive withdrawal limits. At the same time, Bitcoin and cryptocurrency point-of-sale providers gave their customers a true “business-as-usual” experience since they were not nearly as affected, if at all.
Takeaway: Impressive Post-Pandemic Projections for the Future of Bitcoin ATMs
Bitcoin ATMs have shown resilience by navigating a global hardship. In many cases, their growth has exceeded expectations for success, which has further solidified their position in a strong industry. The effects of the pandemic on Bitcoin ATMs have hastened their growth in the market, emphasizing their dynamic nature and inherent ability to adapt. Eventually, even more businesses will get involved with this industry. Overall, the Bitcoin ATM market will not slow down anytime soon – no matter what adversity they will face.
