Published: Mar, 2018
The global cryptocurrency market is in incipient stage of development, finds Transparency Market Research (TMR). The global market share is led by Bitcoin, attributed to widespread acceptance of the cryptocurrency in the payment system. Albeit, Litecoin as a cryptocurrency will gain immense traction over the forecast period, driven by the surge in popularity among users in recent years. Some of the other components rising in prominence world over are Ethereum, Ripple, and Namecoin. Investors world over are divided as to which digital currency will surge ahead and gain dominance in the global market. On the other hand, as the wide potential of blockchain technology is leveraged to develop innovative financial products, more users will adopt these cryptocurrencies. This will indeed the raise the ante in the global financial industry.
Prominent players operating in the global cryptocurrency market include BTL Group Ltd., BitGo, Xilinx Inc., Advanced Micro Devices, Inc., Alphapoint Corporation, BitFury Group Limited, NVIDIA Corporation, Microsoft Corporation, and Intel Corporation.
The global cryptocurrency market stood at US$574.3 million and is projected to surge to a worth US$6,702.1 million by the end of 2025. The global market is projected to rise at a phenomenal CAGR of 31.3% in between the assessment period of 2017 and 2025.
The major components of cryptocurrency comprise hardware and software. Of the two, the hardware segment accounts for the major market share in 2016 and is expected to continue to hold its sway throughout the assessment period. Regionally, Europe led by Germany contributed the higher share of revenue in the global market in 2016. North America is also expected to be a potentially lucrative market. The growth of these regional markets can be attributed primarily by the vastly rising adoption of cryptocurrencies among users and the presence of remarkable cryptocurrency mining pools.
Popularity of Cryptocurrencies to ride on Intensifying Need for Secure and Decentralized Payment System
World over, the popularity of different cryptocurrencies rides on the wave of transformations in payment systems underpinned by the disruptive potential of blockchain technology. The surge in demand for digital currencies is fueled by the need for decentralized and secure digital payment system. The market gathered steam after Bitcoin, a decentralized ledger powered by blockchain across a peer-to-peer network, started to emerge as a disruptive force in value-exchange mechanisms.
The lack of control by any governing body or organization and the absence of any third-party intermediary have served as robust propositions for its immense popularity among users and investors alike. The features of anonymity of these digital payment systems and the amazingly high speed with which transactions can be carried out account for the staggering rise in demand for cryptocurrencies. Moreover, the potentially high security provided by cryptography for these virtual currency transactions make them tamper-proof, increasing trust between the entities involved in transactions.
Cybersecurity Breaches and Lack of Widespread Acceptability Glaring Constraints
However, the various characteristics of cryptocurrencies also make them vulnerable to misuse. The marked lack of regulatory control over transactions has hindered the widespread adoption. The extreme price volatility and the rising number of cybersecurity breaches, particularly with respect to initial coin offering (ICO), leading to potential loss of dollars are concerns expected to keep many investors at arm's length.
Furthermore, the intricate underlying technology for cryptocurrencies and the lack of value for average users at large are notable factors impeding the growth of the market. However spiraling information spreading the awareness about the benefits of specific cryptocurrencies for common man will help expand the horizon of the market. Incessant advances in value-exchange mechanisms brought by players will help develop innovative digital assets built on the top of blockchain.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Cryptocurrency Market (Component - Hardware (FPGA, GPU, ASIC, and Wallet), Software (Mining Platform, Blockchain, Coin Wallet, Exchange); Type - Bitcoin, Ethereum, Ripple (XRP), Litecoin, and Dashcoin) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017–2025.”
The global cryptocurrency market is segmented based on:
- Mining Platform
- Coin Wallet
- Ripple (XRP)
- North America
- The U.S.
- Rest of North America
- The U.K.
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America
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