The Market Research Report Search Engine (MRRSE) has released a new study regarding the crypto market. The Global Cryptocurrency Market gives insights on the growth of the market but also forecasts for a period between 2017-2025.
Under the Porter’s five forces analysis section, a brief analysis of the level of competition within the cryptocurrency industry is given and business strategy is provided in order to determine the competitive attractiveness and intensity of the cryptocurrency market, says the presentation of the research.
The report goes in-depth on subjects like trends, opportunities, and restraints. The study shows that the market is driven at the moment by fast and secure transactions, low payment fees (remittance) and the growth of venture capital investments.
According to the report, the traditional banking system is overloaded by regulation and compliances, a factor that makes the international transactions more costly. The average fees for sending money across borders with conventional companies like Western Union or Money Gram are at between 7 to 10 percent.
The Software vs. Hardware on the Crypto Market
Based on the fact that the traditional system is starting to become very expensive, the study in forecasting that the cryptocurrency market will grow to $6,702 million by 2025.
The analysis shows that the market is divided into two sectors, hardware and software. The hardware class is composed of GPUs ASICs and Wallets while the software is comprised of exchanges, blockchains, mining platforms, and soft wallets.
While the blockchain has been here for a while and the software evolution has skyrocketed along with it, since 2016 the hardware sector started to win some ground, and it is expected to gain dominance in the next years.
The Crypto Market Types
The study is also dividing the cryptocurrencies. By selecting the most popular cryptocurrencies and the ones with the most prominent market coverage Bitcoin, ehtereum, ripple, litecoin, dash, and others, are indicated as the most promising. However, the analysis is showing that the bitcoin sector will still have the highest market share due to the mass adoption in applications and industry verticals.
Furthermore, after bitcoin, ethereum will see the biggest growth due to its smart contracts and consensus (PoS).
The Global Distribution
According to the paper, in 2016 Europe had the highest revenue resulting from cryptocurrencies. Germany was the most significant contributor from Europe, and the authors are suggesting that the region will show incredible growth in the next seven years. Besides that, Europe is dominant in the Mining Pools sector which will create an opportunity for cryptocurrency adoption by retailers which will ultimately impact the European economy.
On the other side of the planet, in North America, the big players are USA and Canada. The forecast is suggesting that in the future the US will become an essential actor in the initial coin offering (ICO) sector.
The study states that eventually, countries like China, Singapore, and Japan will drive the Asia Pacific crypto market. While Saudi Arabia and the United Arab Emirates and South Africa will be the highest generators of revenue from the Middle East and Africa (MEA).
Regarding South America, the study shows that in multiple countries the crypto market is driven by inflation and political and non-political problems.