Monthly Archives: February 2020

Bitcoin Depot ATM

A Chat With CoinFlip About Bitcoin ATMs

In this interview held in December of 2019, you will hear Daniel and Dustin from one of the largest Bitcoin ATM Operators – CoinFlip talking about the business.

In the beginning, Daniel talks about the difficulties they had to overcome when they started. Apart from the regulations and obtaining the AML policy, which they learned that needs to be done on the example of Charlie Shrem, he states the cash flow as one of the unexpected drawbacks they faced. He explains that it takes a week for an armored car to pick up the money and two more days of processing, so it’s a nine-day lead time on the cash that they need so they could buy more bitcoin and keep the business expanding.

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Bitcoin ATM Operators Growth and Survival Statistics

Public opinion about bitcoin ATM business varies, but mostly it is split into two radical sides: either “machines are not used by anyone and hence operators don’t make any money”, or “the fees charged are usually so huge, probably operators do a lot of money”. Obviously, both extremes do not correspond to reality, as if it was not profitable, there would be not that many businesses doing this long term, on the other hand, the fee size is dictated by market and there are plenty of various costs and risks associated with this business.

In this post we analyze historical data available on the website about operators growth and closure of activities. We analyze activity of total 870 operators on the website, since October 2013, when the first publicly accessible ATM was installed, and up to the end of January 2020.

Number of crypto ATMs by operator
Number of ATMs per each operator over time

The chart above summarizes information, that is used as a source for analysis — number of ATMs installed by each operator on the 1st day of each calendar month.

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Bitcoin ATM Market Dynamics January 2020

The Year 2020 had a good start when it comes to the price of Bitcoin. The price at the beginning was $7,168 and continued to rise at a pretty stable rate. January ended with a price of $9,502, which is a 32.5% increase when compared to the beginning of the month.

The number of new machines continued to grow at a relatively stable rate, as the price of Bitcoin.

Period Start: 6377, Period End: 6705
Opened: 432, Closed: 104, Net Growth: + 328 (5.1%)

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