Bitcoin ATM Startups Say They're Booming, Thanks in Part to Venezuela

The companies behind the world's bitcoin ATM networks say their market is alive and well.

Matias Goldenhörn, director of Latin America operations at the ATM operator Athena Bitcoin, told CoinDesk that such ATMs are "Becoming a real alternative to banks" for diverse users in emerging markets.

Coin ATM Radar estimates there are now 4,213 cryptocurrency ATM machines deployed worldwide, most of which strictly offer bitcoin, compared to roughly 471 machines worldwide in January 2015.

Jorge Farias, a Venezuelan expat and CEO of the Panama-based startup Cryptobuyer, told CoinDesk that demand for bitcoin ATMs to support cryptocurrencies like dash and flash is largely driven by sponsored educational initiatives in Latin America - some of which literally give away small amounts of crypto to prospective users in emerging markets like Venezuela, which is currently roiled by crippling financial and political insecurity.

That's why Farias is preparing to open Venezuela's first bitcoin ATM in Caracas in early February, which will include support for other cryptocurrencies as well.

"The bitcoin ATM industry is kind of coming into its own now. We can provide access to different cryptos with bitcoin as the settlement layer."

According to Goldenhörn, Athena Bitcoin earned $3 million in net profits in 2018, after installing 25 new machines in Latin America, in part because of the Venezuelan diaspora in Colombia and Argentina spreading awareness of how unbanked people can still use bitcoin ATM machines.

If Athena Bitcoin is able to raise a $7 million Series A round - for which the Chicago-based startup is currently fundraising - then Goldenhörn said the plan is to deploy up to 150 new bitcoin ATMs across Latin America in 2019.

We probably had only one bitcoin ATM until 2018. Now we have 20 machines in Israel."

Busy bitcoin ATM in Colombia image courtesy Athena Bitcoin.