Hidden in the corners of food shops, filling stations and transit hubs, crypto ATMs are part of the "critical infrastructure sector" still authorized to operate in the context of the current pandemic. And some are thriving.
Despite decrees that limit people to a minimum, some bitcoin ATM operators are reporting an increase in transactions, while others are taking advantage of this interval to expand their networks.
For all those intimidated by having a digital wallet, private keys and QR codes, bitcoin ATMs (sometimes called BTMs) provide a convenient ramp to these "safe haven" resources.
ATM Bitcoin's network expands with new physical locations ...
Marc Grens, co-founder of DigitalMint, a Bitcoin ATM operator, reported that around 95% of DigitalMint machines are located inside or outside essential businesses and are still accessible to the public.
While the company experienced a "slight drop" in overall volumes, Grens said: "We are still driving a substantial amount of traffic to new and existing customers, even during the blockade."
Likewise, LibertyX, which was granted a "BitLicense" to operate in New York last year, has finally begun to expand its positions in the state. "We went from zero to several hundred ATMs in just over a month," said CEO and co-founder Chris Yim.
LibertyX does not own the actual physical machines, but does license software to non-bank bank branches produced by Genmega and Hyosung or managed by Payment Alliance International, which in turn are managed by private owners across the country.
At some point LibertyX software will be installed by default on new machines, but for now, ATM operators must manually update their software to support crypto transactions.
Transaction volume through LibertyX's 3000 ATM network decreased by about 20% in March, although exchanges actually increased on platforms such as Bitcoin system. "We are almost back to where we were pre-COVID."
... and there are those who record an increase in the volume of transactions
Unlike LibertyX and DigitalMint, a recent market operator is reporting an increase in the volume of transactions, despite the reduction in its ATM network. Coinsquare said that about 350 of its 800 total ATMs are currently inaccessible.
According to CEO Cole Diamond, the average transaction size in the past seven days has increased by 167% compared to the average transaction in 2019. While the average transaction size for the entire month has increased by 158% from last year's average .
"Although the country may be closed, our lives and financial responsibilities cannot be put on hold," said Grens. "Fortunately for our customers, Bitcoin also never waits."
