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Bitcoin ATM installation is dragging down the BTC economy amid rising tensions about losing its market dominance
Bitcoin skyrocketed more than 65% within the 12 months of 2021. With the growing adoption of Bitcoin and other digital assets, the infrastructure to use digital currencies also improved. Alongside the growing adoption of cryptocurrencies, the momentum behind the installation of crypto and Bitcoin ATMs also grew exponentially. In fact, according to reports crypto ATM installations witnessed a spike of 71.73%. The United States recorded a regular installation of 48 ATMs per day! Crypto ATMs can be accessed across 75 sovereign nations and are powered by almost 42 producers from all over the world. The year 2021 was actually a milestone for the cryptocurrency market when Bitcoin was adopted as the legal tender for the first time by El Salvador! The crypto peaked enormously after this incidence taking the entire crypto market to topple the US$3 trillion mark. According to reports, the use of Bitcoin ATMs surged globally by more than 100% since 2020. But as 2022 arrived, the glory of Bitcoin fell and Bitcoin ATM installations fell drastically. And this phenomenon is eventually leading to the decline of the Bitcoin economy, as per experts. And amid the falling market dominance of the BTC token, it is quite crucial for Bitcoin developers to make sure that BTC does not suffer any more losses, including the installation of ATMs.
Theoretically, a Bitcoin ATM is an internet-connected kiosk that enables crypto customers to buy Bitcoins using fiat currencies. Bitcoin ATMs are not the same as regular ATM machines that allow bank customers to physically withdraw cash from their bank accounts. Bitcoin ATMs are essentially blockchain-based transactions which send by the BTC tokens to the users’ digital wallet, generally by a QR code. The beginning of 2021 recorded an influx of 14,000 Bitcoin ATMs. These numbers grew drastically towards the end of 2021 when crypto experts recorded about 34,000 installations. But since the beginning of 2022, Bitcoin suffered tragic losses. By the end of April 2022, the crypto was standing at a market value that stood below US$39,000. For a crypto as popular and influential as Bitcoin, this phenomenon is quite heartbreaking. Besides this, April 2022 marked the fourth consecutive month for the stagnation of the BTC ATMs.
Why should investors be worried?
Bitcoin ATMs serve an important purpose for the Bitcoin economy since it helps users physically retrieve or deposit holdings against the corresponding cash reserves. And ever since the gross change in Bitcoin ATMs has maintained a downward trajectory, the net economy of the crypto has also started to shrink, giving investors major nightmares about the crypto’s future prospects. The explosive growth of crypto ATMs last year resulted in the direct adoption of Bitcoin and other cryptocurrencies from institutional investors. So currently, Bitcoin developers would need to support the crypto with the community and also propose alternative methods to make BTC a worthy investment again!