The overall cryptocurrency market is projected to reach USD 1.40 billion by 2024, at a CAGR of 6.18% during 2019-2024.
Based on process, the cryptocurrency market has been segmented into mining and transaction. In the mining process, there is a greater requirement for hardware compared with the transaction process. Therefore, the market for hardware for mining process is larger than that for software. Furthermore, a miner can take part in this process with a small investment.
In addition, the major hardware vendors such as NVIDIA, Intel, and AMD have started offering mining hardware. Moreover, many start-ups such as Bitfury, GateHub (UK), and Bitmine provide application-specific hardware solutions for cryptocurrency mining. The booming venture capital market for cryptocurrency-based start-ups is driving the cryptocurrency market for the mining process.
In cryptocurrency, ASICs are gradually being preferred by miners. These ASIC machines mine at an extraordinary speed while consuming much less power than FPGA or GPU mining rigs. Several reputed companies, such as Bitmain, Avalon, and Innosilicon Technologies, offer highly efficient ASIC products. ASICs are cryptocurrency mining hardware created solely to solve cryptocurrency blocks. They have only minimal requirements for other computer applications. ASIC Bitcoin mining systems can solve Bitcoin blocks much quicker and use lesser electricity or power than other mining hardware, such as FPGAs.
The cryptocurrency market for mining has been further segmented into solo mining, pool mining, and cloud mining. Pool mining is the most cost-effective process and gives the opportunity to earn more than other processes. Therefore, the pool mining segment is likely to register growth at the highest CAGR during the forecast period.
The cryptocurrency market in APAC is expected to hold the largest market during the forecast period. APAC is notable for its high adoption of cryptocurrency. This is attributed to the low cost of electricity in China and early adoption of cryptocurrency in Japan. China is the largest market among all APAC countries. Owing to the low cost of electricity, ideal weather conditions, presence of big mining companies, such Bitmain, Canaan Creative CO., LTD, and Ebang Communication, and availability of venture capital funding, the market in APAC is expected to be the largest for cryptocurrency.
Cryptocurrency is used for various applications, such as trading, remittance, and payment. These applications drive the market for cryptocurrencies.
Cryptocurrency trading involves exchanging fiat currency with crypto, as well as exchanging, buying, and selling of cryptocurrencies. It endures a few similarities of foreign exchange (forex) wherein fiat currencies from across the world are traded 24 hours a day. The number of cryptocurrencies has increased exponentially; currently, there are more than 1,500 cryptocurrencies available. A few of these coins can only be acquired using major cryptocurrencies such as Bitcoin or Ethereum. To contribute to initial coin offerings (ICOs), one needs to perform trades or use a blockchain company's services.
Cryptocurrency has helped overcome a few key challenges related to interbank transaction and compliance-free cross-border remittance that financial systems had faced over the years. While interbank transactions often take days for clearance and settlements, cryptocurrency transactions can be accomplished within a much shorter time. Faster transaction and settlement can help consumers to transact more easily while eliminating the need for paying fees to intermediaries to streamline the processes. This can help banks save on labor-intensive procedures with their customers and exchanges.
A large number of players are investing in developing payment gateways and platform for the payment process of their currencies. When a customer makes a purchase using a cryptocurrency as payment, the transaction often goes through the payment gateway at a fixed exchange rate and automatically converts to traditionally recognized fiat currency so the merchant can avoid the volatility of the cryptocurrency markets. The payment through cryptocurrency has several advantages such as enhanced transactional security, protection from fraud, decentralized system, low fees, protection from consumer chargebacks, and quick international transfers.
Critical questions the report answers:
Where will all these developments take the industry in the mid and long term?
What are the upcoming industry applications for cryptocurrency?
Will the exchanges continue to explore new avenues for cryptocurrency?
The lack of awareness and technical understanding regarding cryptocurrency is a major factor restraining the growth of the market. End users in most verticals do not know about the benefits of cryptocurrency and also lack understanding of how it works. This restricts the investment by companies in cryptocurrency as it is decentralized and has an uncertain regulatory status. As cryptocurrency is not widely adopted by investors, public, and entrepreneurs, its potential for transforming transaction processes has not yet been realized. Cryptocurrency uses cryptographic algorithms running across a vast network of independent computers. Therefore, sound technical knowledge about the related technology is crucial to explore the benefits of cryptocurrency in use cases.
Key players in the market include Bitmain (China), NVIDIA (US), Xilinx (US), Intel (US), Advanced Micro Devices (US), Ripple Labs (US), Ethereum Foundation (Switzerland), Bitfury Group (Netherlands), Coinbase (US), BitGo (US), and Binance Holdings (China).
These players are increasingly undertaking partnerships and collaborations, and product launches to develop and introduce new products in the market.
Key Topics Covered:
1 Introduction 1.1 Study Objectives 1.2 Definition 1.3 Scope of the Study 1.4 Currency 1.5 Limitations 1.6 Stakeholders
2 Research Methodology 2.1 Research Data 2.2 Market Size Estimation 2.3 Market Breakdown and Data Triangulation 2.4 Research Assumptions
3 Executive Summary
4 Premium Insights 4.1 Attractive Opportunities in Cryptocurrency Market 4.2 Cryptocurrency Market for Payment, By Type 4.3 Cryptocurrency Market for Mining, By Type 4.4 Cryptocurrency Market in APAC, By Application and Country 4.5 Cryptocurrency Market, By Geography
5 Market Overview 5.1 Introduction 5.2 Market Dynamics 5.2.1 Drivers 184.108.40.206 Transparency of Distributed Ledger Technology 220.127.116.11 High Remittances in Developing Countries 18.104.22.168 High Cost of Cross-Border Remittance 22.214.171.124 Fluctuations in Monetary Regulations 126.96.36.199 Growth in Venture Capital Investments 5.2.2 Restraints 188.8.131.52 Uncertain Regulatory Status 184.108.40.206 Lack of Awareness and Technical Understanding Regarding Cryptocurrency 5.2.3 Opportunities 220.127.116.11 Significant Growth Opportunities in Emerging and Developed Markets 18.104.22.168 Acceptance of Cryptocurrency Across Various Industries 5.2.4 Challenges 22.214.171.124 Concern Regarding Security, Privacy, and Control 126.96.36.199 Technical Challenges Pertaining to Scalability 5.3 Value Chain Analysis of Cryptocurrency Market 5.4 Key Trends in Cryptocurrency Market 5.4.1 Ransomware Case Study 188.8.131.52 Technology Behind Ransomware 184.108.40.206 Encryption 220.127.116.11 Advent of Cryptocurrencies 18.104.22.168 Impact of Ransomware Attack 22.214.171.124 Decline of Ransomware 5.4.2 Rise in Cryptocurrency Mining Malware 5.4.3 Initial Coin Offering (Ico) 5.4.4 Cryptography in Cryptocurrency 5.4.5 Cryptocurrency Prices (In USD) 5.4.6 Hardfork in Cryptocurrencies 5.4.7 Security Token Offering 5.5 Regulation of Cryptocurrency
6 Cryptocurrency Market, By Offering 6.1 Introduction 6.2 Hardware 6.2.1 Asic 126.96.36.199 Asics to Dominate the Cryptocurrency Hardware Market During the Forecast Period 6.2.2 Gpu 188.8.131.52 Demand for Gpus Expected to Decrease for Cryptocurrency Mining During the Forecast Period 6.2.3 FPGA 184.108.40.206 FPGA Expected to Grow at A Steady Rate in Cryptocurrency Hardware Market 6.2.4 Wallet 220.127.116.11 Better Security Expected to Drive the Cryptocurrency Hardware Wallet Market During the Forecast Period 6.3 Software 6.3.1 Mining Platform 18.104.22.168 Growth in Adoption of Cryptocurrency Expected to Drive the Market for Mining Platform 6.3.2 Coin Wallet 22.214.171.124 Mobile Wallet Expected to Drive Cryptocurrency Software Wallet Market 6.3.3 Exchange 126.96.36.199 Exchange to Account for the Largest Share of Cryptocurrency Software Market During the Forecast Period
7 Cryptocurrency Market, By Process 7.1 Introduction 7.2 Mining 7.2.1 Solo Mining 188.8.131.52 Increasing Demand for High Computing Power has Led to Decline of Solo Mining 7.2.2 Pool Mining 184.108.40.206 Pool Mining Expected to Account for the Largest Share of Cryptocurrency Mining Market During the Forecast Period 7.2.3 Cloud Mining 220.127.116.11 Higher Profits Expected Drive Cloud Mining Market During the Forecast Period 7.3 Transaction 7.3.1 Exchange 18.104.22.168 Exchange to Dominate the Cryptocurrency Transaction Market During the Forecast Period 7.3.2 Wallet 22.214.171.124 Increase in Adoption of Cryptocurrencies Expected to Drive Cryptocurrency Wallet Market
8 Cryptocurrency Market, By Type 8.1 Introduction 8.2 Bitcoin 8.2.1 Bitcoin Accounted for the Largest Market Size of Cryptocurrency Market in 2018 8.3 Etgereum (ETH) 8.3.1 Support for Smart Contract Expected to Drive the Market for Ethereum 8.4 Bitcoin Cash 8.4.1 Larger Block Size Expected to Drive the Market for Bitcoin Cash 8.5 Ripple (XRP) 8.5.1 Scalability, Efficiency and Low Cost Expected to Drive the Market for Ripple 8.6 Dashcoin 8.6.1 Features Such as Privtae Transactions, Instant Trasactions and Decentralized Governance to Drive the Market for Dash 8.7 Litecoin (LTC) 8.7.1 Faster Transaction as Compared to Other Major Cryptocurrencies Expected to Drive the Market for Litecoin 8.8 Others
9 Cryptocurrency Market, By Application 9.1 Introduction 9.2 Trading 9.2.1 Trading to Lead Cryptocurrency Market Between 2018 and 2024 9.3 Remittance 9.3.1 Compliance-Free and Low Fees Expected to Be the Major Drivers for the Growth of Remittance in Cryptocurrency Market 9.4 Payment 9.4.1 Peer-To-Peer Payment 126.96.36.199 Peer-To-Peer Payment Expected to Grow at Highest CAGR During the Forecast Period 9.4.2 Ecommerce and Retail 188.8.131.52 Growth in Number of Ecommerce Companies Accepting Cryptocurrencies as Mode of Payment to Drive the Market 9.4.3 Media and Entertainment 184.108.40.206 Casinos Expected to Drive Cryptocurrency Market for Media and Entertainment 9.4.4 Travel and Tourism 220.127.116.11 The Idea of Traveling With One Global Currency Expected to Drive the Cryptocurrency Market in Travel and Tourism 9.4.5 Others
10 Geographic Analysis 10.1 Introduction 10.2 North America 10.2.1 US 10.2.1.1 US Accounted for the Largest Share of Cryptocurrency Market in North America 10.2.2 Canada 10.2.2.1 Government's Decision to Allow the Use of Cryptocurrency Expected to Drive the Market in Canada 10.2.3 Mexico 10.2.3.1 Cryptocurrency Being Considered Legal for Eletronic Transactions is Expected to Drive the Market in Mexico 10.3 Europe 10.3.1 Germany 10.3.1.1 Favorable Government Regulations Towards Cryptocurrency is Expected to Drive the Market in Germany 10.3.2 France 10.3.2.1 Reduction in Taxes on Cryptocurrency is Expected to Drive the Market in France 10.3.3 UK 10.3.3.1 Legal Cryptocurrency Exchange Expected to Drive the Market in the UK 10.3.4 East Europe 10.3.4.1 Companies Moving to East Europe for Mining and Exchange are the Major Factors Driving the Cryptocurrency Market in East Europe. 10.3.5 Rest of Europe 10.3.5.1 Rest of Europe Expected to Lead the Cryptocurrency Market in Europe During the Forecast Period 10.4 APAC 10.4.1 China 10.4.1.1 China Accounted for the Largets Market Size in Cryptocurrency Mining in APAC 10.4.2 Japan 10.4.2.1 Government's Recognition of Exchanges as Legal is Expected to Drive the Cryptocurrency Market in Japan 10.4.3 South Korea 10.4.3.1 Favorable Government Regulations Towards Cryptocurrency Expected to Drive the Market in South Korea 10.4.4 Rest of APAC 10.5 RoW 10.5.1 South America 10.5.2 Middle East and Africa