Bitcoin ATMs Are the Backbone of Bitcoin's Physical Infrastructure

If the goal is financial inclusion, expanding real-world access to Bitcoin through ATMs and other physical entry points is not just a matter of convenience.

If the last year has taught us anything, it is that Bitcoin is at an inflection point. Once considered a niche investment, it has evolved over the past decade into a globally recognized financial asset among individuals, businesses, and institutions, a shift I’ve experienced firsthand as the COO of Bitcoin Depot.

Despite intense periods of volatility, 2024 marked several watershed moments for Bitcoin – from the SEC’s approval of spot Bitcoin ETFs and the completion of the quadrennial halving milestone to its record-breaking surge past $100,000 and beyond amid speculation over potential Federal Reserve interest rate cuts and rumored plans to designate it as a U.S. reserve asset.

With institutional interest at an all-time high and policymakers racing to establish clear regulatory frameworks, Bitcoin is expected to become more mainstream than it has ever been before. You may even own some yourself. But there’s a problem: Regulation, consumer interest, and institutional endorsement aren’t enough. While favorable policies and financial legitimacy are essential, they don’t solve all real-world barriers to adoption – especially for underbanked people or those who consider themselves less tech-savvy or outside the financial mainstream.

Additional tools may be necessary to reduce the gap between demand and accessibility. Along with digital solutions, it has become clear that physical infrastructure is key to making crypto genuinely accessible to all.

Increasing Popularity, Limited Access

Global crypto ownership is growing rapidly, with the number of users increasing by 33% since 2023, bringing the total to over 500 million people actively buying, holding, and transacting in digital currency. Bitcoin, in particular, stood out as the top-performing asset class of 2024, and by a significant margin compared to other investment options.

Among institutional investors, interest in crypto is also at an all-time high. Major players like Fidelity, BlackRock, and PayPal are integrating Bitcoin into their services, and everyday businesses are becoming more comfortable accepting Bitcoin as a legitimate form of payment.

Bitcoin appeals to a diverse range of users, spanning different age groups, demographics, income levels, and geographic regions. For some, it offers a way to diversify their portfolios or hedge against economic uncertainty. For others, it is a powerful financial inclusion tool, enabling cross-border payments and remittances.

Despite this widespread appeal and rapid adoption, many potential users still face challenges in accessing Bitcoin. The process can feel daunting and complex for those without experience with crypto exchanges, digital wallets, and private key management. Additionally, individuals without access to traditional banking services or who are unfamiliar with digital finance may struggle to navigate the space. These challenges prevent a substantial portion of the population from fully embracing Bitcoin as a viable option for financial inclusion.

Regulation Alone Isn’t Enough

Like its growing popularity, recent pro-crypto policy advancements are a step forward in Bitcoin’s path to mainstream adoption. Regulatory frameworks across the globe are evolving, with governments aiming to strike a balance between encouraging innovation and protecting consumers. For instance, the SEC’s approval of Bitcoin ETFs was a game changer, making it easier for investors to buy and sell Bitcoin, just as they would with stocks or mutual funds.

With a new pro-crypto administration in 2025, many are anticipating a shift toward more crypto-friendly policies. We’ve already seen the creation of an SEC-led task force to develop a more comprehensive regulatory framework for digital assets and an executive order emphasizing support for the growth and use of these technologies.

These regulatory changes are essential for providing legal clarity and protection, especially for institutional investors, and for easing some regulatory uncertainty around Bitcoin. However, they do not fully address the barriers faced by everyday users when trying to access Bitcoin. No matter how favorable the regulations are, Bitcoin adoption won’t scale if people don’t have a simple and familiar way to buy it. While some users are comfortable navigating exchanges, others need physical infrastructure, such as Bitcoin ATMs.

Physical Access to Bitcoin

Physical access points, particularly Bitcoin ATMs, are among the most overlooked yet essential components in making crypto accessible. With over 38,000 Bitcoin ATMs operating worldwide, these machines have significantly increased Bitcoin’s accessibility. Typically found in high-traffic locations such as convenience stores, malls, and grocery stores, Bitcoin ATMs have become a popular choice for individuals who prefer a straightforward method to purchase Bitcoin with cash without needing a bank account.

Bitcoin can feel intimidating for those less familiar with digital finance—such as individuals without access to traditional banking services or those with limited experience in cryptocurrency exchanges. Bitcoin ATMs allow individuals from various demographics, including underbanked populations, emerging markets, and remittance users, to enter the crypto space without requiring familiarity with digital wallets or online exchanges.

While the U.S. alone has over 30,000 of these machines, and international adoption is steadily increasing, consider that entire countries in emerging markets have fewer than 100. This disparity limits