Transparency Market Research observes that the global cryptocurrency market is still in its nascent phase. Presently, Bitcoin dominates the global market due its high acceptance. However, Litecoin is poised to gain traction during the forecast period of 2017 and 2025. The other leading vendors in the global market are Namecoin, Ripple, and Ethereum. The growing awareness about the power of blockchain technology is expected to work in favor of these companies in the near future. Noted investors in the global market say it is difficult to pin point which currency would emerge as a leader. However, increasing usage of technology and widening scope of investments is surely set to intensify the competition amongst global players. Despite this ambiguity, the fact remains clear that these companies are ready to give the banking systems of the world a run for their money in the forthcoming years.
According to the research report, the global cryptocurrency market is expected to be worth US$6,702.1 mn by the end of 2025. During the forecast period of 2017 and 2025, the global market is estimated to surge at a CAGR of 31.3%. On the basis of components, the hardware market is projected to exhibit a CAGR of 30.4% during the forecast period. Geographically, North America and Europe both expected to show a steady growth rate in the global market due to greater awareness about cryptocurrencies.
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Convenience of Exchanges Lures Big Organizations toward Cryptocurrencies
The demand for cryptocurrencies has been on the rise as it has developed as a convenient medium of currency exchange. The lack of centralized governing bodies for cryptocurrencies has made it simpler form of digital currency amongst several investment enthusiasts. Cryptocurrencies are encrypted codes that be easily transferred through computers or smartphones in electronic formats. Thus, it completely eliminates the need for card or cash to enable transactions. The convenience of making these transactions that are devoid of any regulatory authorities and additional payments have favored the global cryptocurrency market growth in the past few years.
Bitcoin is currently leading the global market and has considerably revolutionized the way digital transactions are being carried out. Analysts anticipate that cryptocurrency market is likely to grow by leaps and bounds in the forthcoming years. Introduction of many more currencies such as Ethereum, Ripple, and Litecoin are also projected boost the overall market in the near future. The global market has been high on speculation about return on investment that cryptocurrencies can yield. Thus, there has been a high adoption of cryptocurrencies as a new mode of payment amongst big organizations. The report states that blockchain platform will be popularly used in the near future as it is a simpler way of recording and tracking transactions in a given distributed ledger.
Lack of Regulation to Create Distrust amongst Investors
On the flip side, the global cryptocurrency market faces of major challenges. The lack of supervision or regulations governing the transactions of the cryptocurrency market have made it lucrative for illegal activities. There is a high chance that cryptocurrencies might be by and for terrorist organizations. Furthermore, its negligible utility to the common man has resulted in its limited usage. The fact that cryptocurrencies only exist in the virtual world makes these susceptible to cyberattacks, thereby exposing a high investment a potential loss. All of these factors are expected to hamper the growth of the global cryptocurrency market during the forecast period.