Bitcoin ATM in Israel Shuts Down Due to Demand Overload
The bitcoin fever has hit Israel, but the global demand is crashing the infrastructure
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Israel’s first bitcoin ATM is located inside the Israeli Bitcoin Embassy, a Tel Aviv community center for the local bitcoin scene. The Embassy’s ATM is operated by currency exchange service Bits of Gold Ltd., which leases space in the same building. Less reliant on the cryptocurrency marketplace infrastructure, the service is still operating, though it has been shutting down periodically to process pending purchases due to high demand. Operating hours were also cut back, and the ATM now closes at 6 p.m. every day, though the center remains open to visitors.
The second ATM, opened in October and located in Dizengoff Street, has been closed for the past week due to the pressure on the global cryptocurrency infrastructure. The machine’s operator told Calcalist he hopes it will return to regular activity later today, or tomorrow at the latest.Global interest has caused major delays in most of the main cryptocurrency stock exchanges, such as Kraken or Coinbase, and in some cases, transactions are taking over 48 hours to process.