Growth of Bitcoin Adoption to Drive Expansion of Cryptocurrency Market
A cryptocurrency is a virtual or digital currency that can be used to buy goods and services, which implies there is no physical coin or bill used and all the transactions take place online. Running on blockchain technology it uses an online ledger with strong cryptography to ensure that online transactions are completely secure. Cryptocurrency has risen exponentially over the past few years. Inclination toward it as a digital asset, as an alternate capital, is driving the growth of cryptocurrency market. Although cryptocurrencies have been surrounded by a buzz because of their high potential, despite such fame, crypto assets are touted as the high-risk investment for millennials. However, those who have realised its potential to revolutionise the world will continue to fuel the expansion of cryptocurrency market.
One of the primary aspects driving cryptocurrency market expansion is increased digitisation across sectors. The primary drivers driving the development of the global cryptocurrency industry include an increase in the requirement for operational efficiency and transparency in financial payment systems, growth in remittance demand in emerging countries, an improvement in data security, and a rise in market value. An increase in cryptocurrency demand among banks and financial institutions and untapped potential in emerging economies are likely to present attractive opportunities for market expansion during the projection period.
Bitcoin is one of the world's most widely used and well-accepted digital currencies. Rising visibility, increased investment interest, and supportive rules contribute to the market's expansion. The increasing value of bitcoin currency and the ability to pay rewards for transactions are also driving up the market value of digital cash. Over 81 million individuals had generated unique Bitcoin wallets on Blockchain.com, a platform that allows anyone to buy Bitcoin, as of March 2022. This represents a 72 percent increase over the previous year and a 237 percent increase since 2018. The growing usage of bitcoins will propel the growth of global cryptocurrency market.
Another factor boosting the use of bitcoins is the allowance from various retail and payment services for payment in the form of bitcoins. The increasing rate of bitcoins will encourage users to buy bitcoins and various goods via bitcoins. In May 2021, PayPal unveiled a new service dubbed "Checkout with Crypto" in May, allowing users to make bitcoin purchases from millions of merchants. The service converts cryptocurrencies acquired via the merchant’s exchange to US dollars. Thus, initiatives from various payment merchants will increase bitcoin usage and drive the growth of cryptocurrency market.
Mining Process Maintains Dominance in Cryptocurrency Market
Mining will have the most significant part of the cryptocurrency business in the forecast period. Mining is an essential step in generating, transmitting, and confirming cryptocurrency transactions. It ensures the currency's steady, secure, and safe propagation from a payer to a receiver. Technology advancements to make cryptocurrency mining more viable by reducing power consumption while improving hash rates are projected to fuel segment expansion over the forecast period. The increasing use of cryptocurrencies for various applications and the accompanying increase in cryptocurrency mining, pushing cryptocurrency miners to form mining pools to pool their computing capabilities across a network, is also projected to expand the mining segment. The rising popularity of various cryptocurrencies, notably boosting demand for cryptocurrency-specific hardware, is also likely to play an essential role in driving segment expansion. Other aspects that auger well for crypto mining expansion during the projection period include continued digitalisation, the proliferation of smartphones, and an increasing internet penetration rate.
Widespread Acceptance Underpin North America’s Continued Dominance in Cryptocurrency Market
North America will hold the highest proportion of the global market in the forecast period because most of the region saw bitcoins as a means of exchange for tax purposes rather than cash. Even though the government does not legally regulate it, many industrialised countries continue to emphasise the use of digital money. The acceptance of digital payment by consumers, and retailers supports the expansion of cryptocurrency market here. The popularity of bitcoin mining, and the presence of the bulk of prominent firms in North America dominates the market. Cryptocurrency exchange rules in the United States declare that they are legal and fall under the regulatory jurisdiction of the Bank Secrecy Act (BSA), thus driving the market growth in the country. Bitcoin is owned by approximately 46 million Americans (almost 22 percent of the adult population). In May 2021, 51% of Americans had purchased cryptocurrencies for the first time within the previous year. The growing penetration of cryptocurrency in the nations will favour the progress of cryptocurrency market across the region.
APAC will expand at the fastest CAGR in terms of value during the forecast period. Several technical advancements, as well as the adoption of virtual currency for specific platforms in Japan and Taiwan, are expected to expand the Asia Pacific business considerably. Strategic collaborations and partnerships by important players also add to the Asia Pacific market. In January 2020, Z Corporation, Inc. and TaoTao, Inc. announced a collaboration with the financial service agency to extend the crypto market in Japan by confirming regulatory compliance. Similarly, despite the nationwide lockdown caused by the coronavirus outbreak, Malaysia's Securities Commission has legally enabled digital currency exchange operators to operate in the country. The impact of the COVID-19 epidemic is projected to provide opportunities for this sector to flourish in certain economies.
Global Cryptocurrency Market: Competitive Landscape
In March 2021, Visa Inc. processed cryptocurrency payments directly on the Ethereum Blockchain and planned to launch it as a new service payment method. The company's main objective is to accept cryptocurrency as a payment mechanism in finance. In January 2020, Binance.com purchased WazirX, a Mumbai-based Bitcoin exchange. Binance.com is focusing on extending its business portfolio in India with this acquisition. Binance.com has patented the Fiat Gateway platform, and WazirX's peer-to-peer (P2P) engine will be incorporated to simplify Binance.com digital currency trading with Tether or USDT purchases.
Few of the players in the cryptocurrency market include Bitmain (China), NVIDIA (US), Xilinx (US), Intel (US), Advanced Micro Devices (US), Ripple Labs (US), Ethereum Foundation (Switzerland), Bitfury Group (Netherlands), BitGo (US), Coinbase (US), Canaan Creative (China), Binance Holdings (China), Bitstamp (Luxemburg), Ifinex (Hong Kong), Ledger SAS (France), Xapo (Hong Kong), and Alcheminer (US).
Global Cryptocurrency Market is Segmented as Below:
Key Elements Included In The Study: Global Cryptocurrency Market:
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