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Cryptocurrency is a digital currency that operates as a medium of exchange using cryptography to secure transactions and to control the creation of additional currency units. The use of cryptocurrencies allows for secure and anonymous transactions that operate independently of a central bank. Cryptocurrencies leverage blockchain technology to enable transactions to be immediately validated without the need for a central clearing authority. Blockchain technology creates an indelible digital ledger that can track the ownership and transfer of crypto assets. This has significant advantages over traditional currency as it reduces transaction settlement times and lowers fees.
The global Cryptocurrency Market is estimated to be valued at US$ 37.09 Bn in 2024 and is expected to exhibit a CAGR of 14.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the primary trends in the cryptocurrency market is its rising adoption as a legitimate payment option. Several major retailers and service providers have begun accepting cryptocurrencies as a means of payment. This includes Microsoft, AT&T, Overstock, Expedia, Shopify, and Nordstrom among others. As awareness regarding cryptocurrencies grows and their value appreciation attracts more users, their medium of exchange use cases will continue to rise over the coming years. Another key trend is the growing institutional investment in cryptocurrencies. Large investment houses, hedge funds, and even Fortune 500 companies have started investing in digital currencies, driven primarily by their rising valuation. This institutional money flow is expected to further mainstream cryptocurrencies and bolster confidence in their long-term viability.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the initial capital required to set up cryptocurrency mining hardware and infrastructure is high. However, threat may increase with advancement of technology.
Bargaining power of buyers: The bargaining power of buyers is low as the buyers have limited control over cryptocurrency prices in the global market. Furthermore, switching costs for the buyers are negligible.
Bargaining power of suppliers: The bargaining power of suppliers is also low as hardware manufacturing is dominated by a few major players globally. Suppliers have limited control over prices and technological change.
Threat of new substitutes: Threat of substitutes is high with new cryptocurrencies and blockchain applications emerging regularly. Existing cryptocurrencies also face competition from each other.
Competitive rivalry: Competition in the industry is high given the large number of cryptocurrencies available.
Key Takeaways
The global cryptocurrency market is expected to witness high growth over the forecast period. The market size is projected to reach US$ 37.09 Bn by 2024, expanding at a CAGR of 14%.
Regional analysis – North America dominates the global cryptocurrency market currently, followed by Europe and Asia Pacific. The USA, China, and Japan contribute significantly to market growth led by high adoption of Blockchain technology and presence of major cryptocurrency companies in these regions.
Key players – Key players operating in the cryptocurrency market are Bitmain Technologies Ltd. (Beijing, China), Xilinx (USA), Intel (USA), Advanced Micro Devices (USA), Ripple Labs Inc. (USA), Ethereum Foundation (Switzerland), Bitfury Group Limited (United Arab Emirates), Coinbase (USA) and others. These players are investing heavily in R&D to develop efficient mining solutions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
