During July 2017 bitcoin price fluctuated a lot. In the beginning of the month it fell to less than $2000 per BTC, but then quickly gained back and month closed at roughly $2700 per BTC, which was higher than the price of end of June 2017.
During April 2017 bitcoin continued to increase in price, and reached ATH ~$1400 by the end of the month.
Such price increase definitely led to hype in bitcoin demand. As bitcoin ATMs are one of the easiest ways to purchase bitcoins, usage of bitcoin machines also reportedly increased. To some extent it led to growth of number of bitcoin ATMs installed. The following statistics illustrate changed bitcoin machines number during April 2017:
Period Start: 1113, Period End: 1156
Open: 63, Closed: 20, Net Growth: +43 (+3.9%)
Bitcoin ATM industry is relatively new, however, it develops very dynamically. There are many new players entering the market, at the same time there is definitely a trend of some major participants increasing their machine networks size. In this article we evaluate how high is the concentration in bitcoin ATM industry w.r.t. manufacturers and operators. For assessment we look at top 3 countries with highest number of bitcoin ATMs installed: United States of America, Canada and United Kingdom.
For the purpose of this article three types of indexes are used:
Concentration ratio 3 (CR3) – market share controlled by top 3 manufacturers or operators;
Concentration ratio 5 (CR5) – market share controlled by top 5 manufacturers or operators;
Herfindahl index – is a concentration index, which is calculated as a sum of squared market shares, and gives more weight to the situation with dominance of a single or small group of companies.
Bitcoin ATMs are spreading quite fast since the end of 2015 and beginning of 2016. Although the most useful application of bitcoin machines could be in the developing countries where financial inclusion is low, the majority of bitcoin ATMs are still appearing in developed countries.
Quick look at bitcoin ATM aggregated stats shows that 63% of all bitcoin machines are in North America and 25% are in Europe. Taking into account 5% in Oceania (mostly Australia) means almost 95% of all machines are in developed countries. There are several reasons for this. Costs for bitcoin ATMs might be quite high for average businessmen in developing country with respect to risk of operating and running it. Also return on investment required can be achieved only in locations with relatively large user base and steady bitcoin usage (mostly in developed countries as of now), which results in transaction volume for such machines.
Leading country within the developed countries list with respect to bitcoin ATM adoption is the United States. As of the end of March 2016 it has roughly 280 bitcoin ATMs installed across the country, which comprises ~45% of all installations worldwide.
Bitcoin ATM industry matures and it is now more than 2 years passed after the first bitcoin ATM installation. Let’s look at what were the most prominent events and trends in bitcoin ATM sphere during 2015 year.
Although there was a slower growth compared to the previous 2014 year it was still a significant increase in number of bitcoin ATM installations. Number of bitcoin ATMs worldwide grew from 330 to 536 bitcoin machines.
The speed of bitcoin ATM installations increased at the very end of the year (jump on the chart in December 2015). Important that new installaitons number was approximately similar to 2014 year, however, in 2015 we see a closure of more machines as well as more reshuffling happens (new locations for old machines). For comparison, in 2014 there were 43 locations delisted from the site, while in 2015 the number of closed locations increased to 183. Continue reading →