For everyone investing in or simply watching Bitcoin, this year was an experienced rollercoaster. In December, more than 23,000 dollars were replaced by the world’s most valuable virtual money. At the beginning of the United States, when Covid-19 was confronted, Bitcoin traded less than $ 4,000. For owners and sellers, this is a spectacular source of profits and losses. This exciting market display, tinted with jealousy and dizziness, for those on the frontlines (like me).
Despite the massive price volatility – which was generally upward – of bitcoin, 2020 was also a relatively mature year for a currency that had circulated for only a decade. You can visit btcrevolution.io, for more information.
A Market Overview
Between 2021 and 2026, the Bitcoin technology market grew at an annual growth rate of 8.3%. The data on transaction volume shows Bitcoin’s real size and nature. In 2018, USD 273 million was valued to enter the worldwide bitcoin technology business. Because of the lack of inflation risks, the popularity of Bitcoin has increased throughout the years. With a single objective: to be finite, the bitcoin system was designed. Therefore, the threat of inflation is lowered to almost nil without the option of printing extra currency. For both the vendor and the buyer, this is a win-win situation.
- The charges for Bitcoin transactions are far cheaper than those related to purchases of credit or debit cards. For SMEs operating on shoestring budgets, this capability is beneficial. Bitcoins are not available, and many wallets enable the user to set the amount charged for expenses. Increased charges can lead to a quicker confirmation of a transaction.
- The Bitcoin concept steadily becomes more open to commercial payments. Recently, Ico’s data in October 2019 indicates that around 155,558 companies accepted Bitcoins worldwide in 2019, with the country with the largest number and 314 Bitcoins companies.
- In 2019, Starbucks demonstrated its plans to incorporate the new payment solution for cryptocurrency Bakkt. Likewise, the US-based Quinn Emanuel started taking Bitcoin in 2019.
- Furthermore, regulation was important for the broad acceptance of Bitcoin. The form of prepaid payment is considered to be Bitcoin.
- Hackers, however, used Bitcoins’ anonymity, as demonstrated by a recent 2018 instance in which victims of ransomware were asked to pay in Bitcoins.
Important Trends in the Market
BFSI to Capture the Majority of the Market
- Bitcoins are faster, cheaper, safer, and less volatile than domestic currency in many countries. In addition to its usage for paying for a wide range of products and services worldwide and on the Internet, it may be used to store values in these countries.
- Bitcoin’s usefulness is that a central authority eliminates the requirement to confirm, clear, and resolve financial transactions. Bitcoin looks like an innovation with the potential to revolutionize capital markets and other financial services fundamentally.
- By considerably cutting transaction costs, Bitcoin can save banks billions of dollars of cash.
- Bantotal from Uruguay, for instance, joined with cryptocurrency exchange BitMEX in Augustober 2019 to facilitate cross-border payments over a Bitcoin blockchain through the supply of basic banking services to over 60 financial institutions in 14 different countries. Ohio is also the first country to accept Bitcoin tax payments processed by BitPay’s network.
- Financial institutions also indicated an interest in producing crypto-monetary financial products. Bitcoin futures enable investors to buy a Bitcoin amount for today’s prices in the future.
North America Will Experience the Fastest Growth
- North America is one of the fastest-growing mining sites for Bitcoin, and Bitcoin service providers are also booming. For example, in June 2019, Binance, the world’s largest volume-based crisis exchange, indicated it would launch a US division.
- Bitcoin is growing public awareness. Newegg, the leading tech-driven e-retailers in North America, said that it would soon be possible to buy using bitcoin from consumers in Canada. This method will enhance the demand for bitcoin by consumers.
- In June 2019, Plouton Mining claimed it wants to create North America’s largest solar-powered mining operation, allowing anybody to participate sustainably and cheaply in an emerging Bitcoin economy.
- As of 2018, the Coin ATM Radar shows that the USA (3229 sites), followed by Canada, has the most Bitcoin ATMs (687 sites). This table shows how bitcoin is bought and sold in North America.
Competitive Environment
- The market in Bitcoin is fragmented, with companies that offer bitcoin-linked business operations growing in the previous five years. The majority of online dealers are now beginning to benefit from the confidentiality and efficiency of bitcoin payments, enabling them to save overhead expenses compared to transactions involving credit or debit cards.
- June 2019 – Facebook has introduced its new Libra encryption currency, enabling users to shop and send money to others with no costs – online or in local exchanges, such as food stores.
- March 2019 – Venezuela has launched a crypt transfer service that allows consumers to use either Litecoin or Bitcoin to transmit money. The major regulator introduced the scheme on crypto-currency of Venezuela, the Superintendence of crypto-assets, and associated activities.
- The Digital Garage and Tokyo Tanshi Joint Undertaking were established by Blockstream and the Japanese Heavyweights Finance Industry in January 2019. It is dedicated to developing Bitcoin solutions for Japan’s institutional market and to blockchain-based solutions.
