According to the report on Crypto-currency Market -Big Players Focusing On Product Advancements For Business Expansion, the crypto-currency market value in 2019 was at $1.02 billion and by 2026 would be expected to rise to $1.5 billion.
These statistics are followed by a different report indicating the crypto-currency market size in 2021 stood at $1.6 billion and is expected to grow to $2.2 billion by 2026 at a CAGR of 7.1%.
The anticipated growth is attributed to the fast transaction services provided to the financial institutions in transaction. Crypto-currency transactions are highly transparent owing to the recording of all transaction on a distributed ledger.
Factors propelling growth
Various stakeholders and observers of the crypto-currency industry attribute different factors to the exponential growth. A key driving factor is the global recognition the industry has received internationally. Crypto-currency is not tied to any country's interest or exchange rates and this saves the market time and money. The chances of fraud when one is making transactions are at the bare minimum. These drive great demand for the market.
The crypto-currency low ownership cost and distributed ledger technology is also depicted as highly transparent and immutable. This has led to many individuals investing in crypto-currencies with the most favourable being Bitcoins. There are, however, concerns of crypto-currencies being high risk investments owing to the drastic fluctuations in its market value. Another area of concern is the case of proper regulation of crypto-currency transactions and thus the fear that crypto-currency exchange in some jurisdictions may be outlawed.
Competitive players
The crypto-currency market is diversified into seven key regions, including Eastern Europe, Western Europe, Asia Pacific, the Middle East, North America, Africa, and Latin America.
Europe is depicted as having the largest market share with the expectation of maintaining this position for the coming years. Many traders in Europe are seen to be increasingly adopting digital currency in addition to the significant number of mining pools.
The main concern for many interested users is access to legit digital currency platforms such as Bitcoin Prime. Key market players include Intel, Microsoft, NVIDIA, Ripple Labs, Advanced Micro Devices and Alpha Point Corporation.
The mining process to hold largest share in the crypto-currency market
According to ReportLinker, distributed ledger technology or transparency and venture capital investments are major drivers for the experienced growth. The mining process makes up the core process in generating, transmitting and validating of crypto-currency transactions. Through the mining process there is stability, security and safety of currency propagating between the payer and the receiver. This is opposed to the fiat currency where there is a centralised authority controlling and regulating transactions. Crypto-currencies operate from a decentralised and peer-to-peer system.
The sentiments of traders
According to Capital.com, institutional investors regard Bitcoin as a digital alternative to gold. This was after a comparison between Grayscale Bitcoin Trust investment inflows which have experienced a rise as opposed to gold EFT investment which have largely remained unchanged. The forecasts from the JP Morgan’s crypto market forecast the huge move towards crypto-currency owes to crypto-currency being a technologically advancing inflation shield.
A CoinDesk report indicates that retail investors’ interest is building up and with it comes new flows and investment patterns. Institutional investors are also seen as most likely to assign resources towards the investigation and learning of Bitcoin.
The open interest could also point towards an increasing leverage and this can be regarded as an indication of increasing trading activity. It also observed an increase in the small investors participating in the industry owing to the rise in Bitcoin addresses with most new entrants interested in buying to hold.
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