Global Cryptocurrency Market: Snapshot
Cryptocurrency is the type of the virtual currency that is used as a medium of exchange in numerous transactions. Transactions through cryptocurrency are much secured and control the creation of additional units. These transactions are observed and verify the transfer of the assets. These currencies use decentralized control as it was facing opposition to be centralized digital currency and central banking systems.
Advances in technological developments have led to the advent of novel virtual currency exchange methods. Cryptocurrency is one of them. Thus, the rapid growth of cryptocurrency as a convenient means of virtual currency exchange may bring tremendous growth prospects.
- The spiraling popularity of digital assets like Ethereum and Bitcoin has added significantly to the growth of the cryptocurrency market. Many countries and regions have adopted cryptocurrency as a legitimate means of currency exchange. Thus, this aspect may turn the tables of growth for the cryptocurrency market
- The rising awareness and popularity of cryptocurrency as a beneficial way of currency exchange is further expanding the growth landscape of the cryptocurrency market. In addition, no interest rates, exchange rates, or charges are applied for cryptocurrency exchange. This aspect brings tremendous growth opportunities for the cryptocurrency market.
- The COVID-19 outbreak is a mixed bag for the growth of the cryptocurrency market. The inclination of people toward digitalization increased the customer base of the cryptocurrency market to a great extent but the volatility of the market cannot be predicted.
- Initially, cryptocurrency crashed to a very small value in March 2020 but later regained growth extensively. Even if the prices of some cryptocurrencies like Bitcoins are high, they cannot be predicted to remain the same. Thus, high volatility surrounds the cryptocurrency market during the COVID-19 pandemic.
- The acceptance of various cryptocurrencies as a legitimate means of exchange by various countries in Europe makes it a prominent growth-contributing region. The presence of a large number of mining pools is further steering the growth of the cryptocurrency market to the peak.
- North America’s cryptocurrency market may also gain commendable growth due to the rising awareness among the people in the region. Asia Pacific is anticipated to grow rapidly during the forecast period.
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Cryptocurrencies are gaining recognition as there are no extra charges, interest rates or exchange rates of any of the countries and accepted as a way of international transaction. Through this transaction, both the time and money is saved. Also, reduces the chances of fraud. The aforesaid factors are fuelling the growth of the global cryptocurrencies market. In addition, the factors such as established technology policy with better transparency in the technology and the low ownership cost are fuelling the growth of the global cryptocurrency market. Additionally, owning Bitcoin is emerging as trend globally which is supporting growth of the global cryptocurrency market.
However, in the trending market, investment in these cryptocurrencies are always considered as high risk due to fluctuations in its prices. Also, it’s decentralize control and risks related to the jurisdictions cryptocurrency exchange which can be banned. These risks related to the cryptocurrencies are hampering growth of the global cryptocurrency market.
According to the report by TMR, the global market for cryptocurrency was valued at around US$0.5 bn in 2016 and is anticipated to expand at a CAGR of around 31.3% from 2017 to 2025 to attain value of US$6.7 bn by the end of forecast period.
Rise in Demand for Safer International Transactions to be Beneficial for Growth
On the basis of component, the global cryptocurrency market is segmented into hardware and software. The hardware segment is sub-segmented into FPGA, GPU, ASIC, wallet, and software segment is further segmented into mining platform, blockchain, coin wallet, and exchange. Of these, hardware segment is dominating the global market for cryptocurrency.
On the basis of type, the global cryptocurrency market is segmented into bitcoin, ethereum, ripple (XRP), litecoin, and dashcoin. Of these, Bitcoin is dominating the global market for cryptocurrencies. This growth is dominated by the benefits such as proof of stake (PoS), electronic cash, and smart contract technology. However, Ethereum segment is gaining substantial attention; thus, the segment is witnessing faster growth in the global market for cryptocurrency.
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High Acceptance from European Countries to Bolster Market Growth
On the basis of region, the global cryptocurrency market is segmented into North America, Europe, Asia Pacific, Latin America, and Rest of the World. Of these, Europe is dominating the global market for cryptocurrencies owing to higher acceptance from the countries such as Germany. Europe is projected to witness the higher adoption of cryptocurrency owing to presence of several mining pool. Growth in the North America is attributable to the higher adoption from the US. Additionally, the market is getting benefitted by the higher adoption from the countries from Asia Pacific such as Japan, Singapore, and China.
Key players operating in the cryptocurrency market include NVIDIA Corporation, Microsoft Corporation, and Intel Corporation. Earlier the Bitcoin was the only cryptocurrency, huge acceptance of Bitcoin encouraged other vendors to enter into the cryptocurrency market. Litecoin was the first cryptocurrency to gain significant acceptance from people. These companies operating in the market are collectively accounting for major shares of the global market for the cryptocurrency.