Bitcoin ATMs Interest Soars

The stock market has done exceptionally well in such an economic uncertain period since the COVID-19 pandemic began and even after a dip. The SPDR S&P 500 electronically traded funds (ETF), which is a good indicator for the stock market’s overall performance has seen a 32% increase in value year-over-year (YoY), and 39% since January 2020.

These returns are remarkable, but the performance and performance of Bitcoin have exceeded expectations. They even outperformed the S&P 500. Bitcoin’s value has risen by 5544% and 352% YoY since the start of 2020. These are significantly higher than the stock market or most other asset classes, as illustrated in Figure 1. Bitcoin’s value rose from $7,175 to $10,382, and then to $46,898.

Cash2Bitcoin, which provides physical locations from where Bitcoin can purchased in the form ATMs, has been helping new investors access this asset for the last 4 years. Investors of all levels have been able to reap the rewards of this asset’s growing popularity by having instant access to ATMs.

Figure 1: Price change of Bitcoin and SPY ETF between January 1, 2020, and September 7, 2021

Investors benefited during the pandemic

Because of its remarkable performance, Bitcoin investing has been a great reward for its supporters. Many short-, medium-, and long term investors have seen significant gains over the past two year. Figure 2 shows the returns on investments made during eight periods up to today, September 7, 2021. If a person bought Bitcoin nine months ago, and then sold it now, they would have made 145% profit. Similar to the above, if an individual purchased Bitcoin 18 months ago, and then sold it now, their profit would be 425%.

Figure 2: Profit made if Bitcoin were purchased 1-21 months ago and sold on September 7, 2021

Cash2Bitcoin: As Bitcoin Greatly Outperforms S&P 500, Bitcoin ATMs Gain in Popularity

Individuals who bought Bitcoin during any of the above periods saw gains of an average 267%, excluding the six-month period. The prices dropped approximately six months ago. This is why the return of -7% was achieved if the purchase was made then. However, the price has steadily risen and could reach its peak soon.

Bitcoin ATMs eases purchases

Bitcoin was already a part of institutional and retail investors’ portfolios long before the pandemic. The performance of Bitcoin over the past year and half has created a positive feedback loop. Its price shot up from $7,175 at its peak to just above $63,000, a price that it could easily reach again. With over 470 Bitcoin/crypto ATMs in the United States, Cash2Bitcoin has been a key facilitator of this increase. Cash2Bitcoin supports hundreds of independent operators with customer support, monitoring machines and buying and exchanging Bitcoin for them.

Cash2Bitcoin ATMs are much easier than traditional ATMs and require no technical knowledge. The individual can either deposit cash or print a QR code to have Bitcoin deposited directly to their virtual wallets. This has made it easier for retail investors of all socioeconomic classes to invest in this way. Cash2Bitcoin has all the details about how to purchase Bitcoin at these ATMs.

Cash2Bitcoin has expanded its reach and provides ATMs in the United States, as shown on the map below. Cash2Bitcoin’s ATMs can be found in every corner of the country, from small-town gas stations to corner shops in major cities like Dallas, Jacksonville and Detroit. Cash2Bitcoin has installed an exponential increase in ATMs every month, reflecting the rises in the prices of the currencies they offer and further increasing Bitcoin’s value.

Figure 3: Cash2Bitcoin’s ATM locations across the United States

Cash2Bitcoin: As Bitcoin Greatly Outperforms S&P 500, Bitcoin ATMs Gain in Popularity

Source: Cash2Bitcoin

Bitcoin ATM users increase

Cash2Bitcoin ATMs saw an increase in transactions during the pandemic. From just under 2000 transactions per month in January 2020, to 5,200 at its peak point in March 2021, and 4,100 in August 2021, the number of transactions at Cash2Bitcoin’s ATMs more than doubled. As shown in Figure 4, it is important to note that the rise in transactions per month was mirrored by an increase in unique customers per month. This indicates that the rise was supported by an expanding customer base, rather than a static but growing number of people.

Figure 4: Number of transactions and unique customers per month performed at all Cash2Bitcoin ATMs

Cash2Bitcoin: As Bitcoin Greatly Outperforms S&P 500, Bitcoin ATMs Gain in Popularity

Cash2Bitcoin rapidly expanded its operations to meet the increasing customer demand. Cash2Bitcoin had 100 Bitcoin ATMs as of January 1, 2020. By the time this paper is published, that number will have risen to more than 470. The rapid growth has resulted in a fairly consistent average monthly number of ATM transactions; however, this ratio will likely increase since internal analysis has revealed that even successful ATMs have slow starts when it comes to attracting users.

This paper is not able to provide details about the average monthly transaction per ATM due to the confidential nature of the data. This ratio may continue to rise or not, but a steady number of customers per month per ATM suggests that there is demand in untapped markets. Positive feedback loops have helped to increase this demand. Bitcoin’s price rises and attracts new investors. This creates more demand and raises prices even further. This loop is also common for other assets, and it is often seen in the stock markets. Sometimes, Bitcoin’s price has fallen and the demand has increased, but every time it has gone back to its previous high, it has surpassed the prior high. Cash2Bitcoin will continue expanding into new markets as long as there is demand. Figure 5 shows the Bitcoin price and the transactions made across all Cash2Bitcoin ATMs.

Figure 5: Weekly number of transactions at Cash2Bitcoin locations and weekly average price of Bitcoin

Cash2Bitcoin: As Bitcoin Greatly Outperforms S&P 500, Bitcoin ATMs Gain in Popularity

The numbers around the profits and investments

Figure 2 shows that many people who bought Bitcoin during the pandemic made profits of over 200%. The Table 1 shows examples of possible profits if Bitcoin was purchased on January 1, 2020 and then sold now.

Table 1: Potential profits if Bitcoin was purchased on January 1, 2020, and sold on September 7, 2021

Initial investment ($) Present value ($) Potential profit ($)
25 163 138
50 325 275
100 650 550
250 1,625 1,375
500 3,251 2,751
1,000 6,501 5,501
2,500 16,253 13,753
5,000 32,507 27,507
10,000 65,014 55,014

Note: “Present value” and “Potential profit” based on price of Bitcoin on Sept. 7, 2021

These profits, as well as the convenience of using physical locations, far outweigh the small ATM fees Cash2Bitcoin charges customers. These are convenience fees that allow you to bring Bitcoin purchases into the real world.

It is quite common to invest $5,000 or more in Bitcoin through ATMs. Cash2Bitcoin machines were used by approximately 10% to acquire Bitcoin. They purchased Bitcoins totaling $5,000 or more in the time period. Furthermore, 6% of those who purchased Bitcoin through Cash2Bitcoin’s machines bought a total amount of $10,000 or more in this period. Higher amounts of money may be attracted to ATMs by people who are more inclined to invest, because they have greater cash reserves and can quickly exchange it for an asset.

Future outlook and the impact of ATMs on your ability to invest in Bitcoin

Analysts attribute Bitcoin’s price rise to many factors. As inflation has increased with traditional currencies, investors have turned to Bitcoin and other assets that are not subject to increasing supply. This has caused the price of bitcoin to drop in value, especially during the pandemic. Bitcoin has a maximum supply limit of 21 million coins. Gold’s supply is also limited to what can actually be mined. Many companies, including Tesla, Newegg and Microsoft, have started to hold Bitcoin on their balances and/or accept it as a payment method. Some payment processors like Paypal have already announced plans or implemented them to allow payments between vendors and customers using Bitcoin.

Many expect Bitcoin’s price to rise and surpass its record $63,000. This is due to its increased adoption by large companies, increased use cases and the positive feedback loop discussed above. Cash2Bitcoin will keep installing ATMs throughout the country to meet demand. This will make it easier for retail investors like you to buy the currency.