Cryptocurrency is a type of digital currency (or virtual currency) that exists only on a computer network called the blockchain on the Internet. They are virtual currencies that scattered outside traditional banks but can still trade like other currencies. Bitcoin, in 2009, became the first decentralized encryption currency, multi-currency after this term refers to encrypt such designs. Since then, several similar cryptocurrencies have created and referred to as altcoins. Cryptocurrencies are dependent on a decentralized consensus mechanism, as opposed to financial banking systems that rely on a centralized regulatory system.
Cryptocurrencies other than Bitcoin, also known as altcoins, are partially generated by referring to Bitcoin’s ideas, principles, and source code. There are more than 800 cryptocurrencies, similar to Bitcoin. Unlike the centralized banking system, most cryptocurrencies are in a decentralized form and distributed computer system networks (also called nodes) running around the world.
Global Cryptocurrency Market estimated to grow with a momentous rate over the forecast period, 2020-2027. The rising need for secured and decentralized digital payments is responsible for the mounting demand of digital currencies are vital factors expected to drive the global cryptocurrency market in the future timeframe. Additionally, the benefits of cryptocurrency include low ownership cost, safer, and quicker transactions, thus augmenting the global cryptocurrency market in the upcoming periods. Moreover, the properties of cryptocurrency, like transparency, low ownership cost, and the technological advancement in the distributed ledger, will accelerate the global cryptocurrency market.
The rise in cross-border remittance transfer coupled with the surge in demand for the digital currencies projected to foster the global cryptocurrency market in the future time. Furthermore, the upsurge in demand for cryptocurrency from various industries such as financial services, consumer or industrial products, technology, healthcare, public sector, etc. anticipated to boost the global cryptocurrency market. The Cryptocurrencies aspire to be a new form of currency and promise to maintain the trust and stability of their value through the use of technology. It consists of three elements, such as a set of protocols for the transaction, distributed ledger storing the history of transactions, and participants of the network user.
In modern times, the tried, trusted, and resilient way to provide confidence in money is the independent central bank. The Independent central banks have largely achieved the goal of safeguarding society’s economic and political interest in a stable currency. Cryptocurrency uses encryption to verify transactions. The encryption aims to provide security and safety. Cryptocurrency gives advanced coding to storing and transmitting cryptocurrency data between wallets and to public ledgers.
The technological challenges in the digital peer-to-peer exchange are the double-spending problem. The cryptocurrencies have overcome the double-spending problem via decentralized record-keeping with a distributed ledger. The distributed ledger can call as a file. Through distributed ledger, peer-to-peer exchange of digital money is feasible, such as each user can directly check-in their copy of the ledger whether a transfer took place and that there was no attempt to double-spend.
Based on offering, the global cryptocurrency market bifurcated into Hardware, and Software. The Hardware segment anticipated to gain a significant share in the market by 2027, as used to validate the transactions made by users. The Hardware includes FPGA, GPU, ASIC, and Wallet.
The software segment will drive by its application to enables companies to utilize crypto assets through purchase and trading.
Based on the process, the global cryptocurrency market bifurcated into Mining and Transaction. The mining segment predicted to dominate as mining is the significant step in the generation, transmission, and validation of transactions of cryptocurrency.
Based on type, the global cryptocurrency market classified into Bitcoin, Etgereum (ETH), Bitcoin Cash, Ripple (XRP), Dashcoin, Litecoin (LTC) and others. The Bitcoin segment estimated to dominate due to benefits provided by bitcoin such as proof of stake (PoS), electronic cash, and smart contract technology. Bitcoin is a form of digital currency that allows performing transactions without the need for a central bank.
Etgereum (ETH) segment will grow by benefits such as elimination of possibilities of fraud, corruption and makes the network tamper-proof.
Based on application, the global cryptocurrency market categorized into Trading, Remittance, Payment, Media and Entertainment, Travel and Tourism, and Others. Payment segment expected to gain maximum revenue by 2027 owing to its benefits such as enhanced transactional security, protection from fraud, decentralized system, low fees, protection from consumer chargebacks, and quick international transfers.
The remittance segment will propel as cryptocurrency helps in the faster transaction and eliminating the intermediary’s fees.
Based on geography, the global Cryptocurrency market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. Europe estimated to occupy the lion’s market share by 2027 on account of higher acceptance from countries such as Germany, and these countries have higher adoption of cryptocurrency as a result of the presence of several mining vendors.
North America will drive by the growing awareness regarding cryptocurrency in developed countries like the USA, coupled with the rising adoption of cryptocurrency in various industries, including BFSI, government, retail, etc.
Companies such as Bitmain, NVIDIA Corporation, Xilinx, Intel, Advanced Micro Devices, Ripple Labs, Ethereum Foundation, Bitfury Group, Coinbase, BitGo, Microsoft Corporation, Intel Corporation, and Binance Holdings are the key players in the Global Cryptocurrency Market.