Companies that produce Bitcoin ATMs report that their business is in good health. This is largely due to increasing demand in Latin America. This is despite ongoing fluctuations in crypto markets.
Emerging markets are increasingly turning to cryptocurrencies like bitcoin. That’s because they are becoming more widely-used as an alternative to fiat currency amidst challenging economic conditions.
Despite fluctuating cryptocurrency prices, consumer demand is remaining strong. ATMs are currently available in a growing number of physical locations across South America and elsewhere. The companies behind these machines are subsequently reporting strong and ongoing growth.
Matias Goldenhörn, director of Latin American operations at ATM firm Athena Bitcoin, says price fluctuations have had little impact on demand for bitcoin from ATMs.
“The machines have proven resilient to the price fluctuations.”
In February, crypto firm CryptoBuyer will subsequently launch its first bitcoin ATM in Venezuela. Its bid will help serve those displaced by the current economic and political turmoil in the country.
While the machine is already operational, it remains in lockdown for security reasons. Venezuelan founder Jorge Farias says that the machine will remain closed to the public until the current turbulence settles down.
Bitcoin ATMs provide a physical alternative to transacting on web based exchanges. They also play a significant role in bringing cryptocurrency to a wider consumer audience. Particularly in emerging economies, where unstable financial systems means the demand for cryptocurrencies like bitcoin is continuing to grow.
Venezuela is in the midst of crippling hyperinflation, with a recent currency revaluation doing little to dampen rampant price rises. As a result, a growing number of citizens have been turning to cryptocurrency. Or fleeing the country altogether in a bid to escape the unrest.
ATMs are primarily used to buy cryptocurrencies in mature economies like the US. In emerging markets, however, there is increasing demand for withdrawals from cryptocurrency to fiat, a closer alternative to regular ATMs.
Emerging and developing economies have long been considered prime use cases for bitcoin and other cryptocurrencies, allowing citizens and businesses to transact outside of often immature and corrupt domestic financial systems.
There are plans to install more ATMs in Venezuela and throughout South America. Therefore, millions more people will soon have access to the benefits of cryptocurrencies like bitcoin.