Introduction to Cryptocurrency
Cryptocurrency is the digital asset that uses encryption to generate and transfer funds in the form of units of currency without any central administration. The system uses a decentralized distributed ledger technology for establishing standards and governance around the fund transfer and other transactions. This banking system provides the user with low cost and efficient method of payment that minimizes the need for third party verification and processing time. Additionally, this system offers more economic cross-border transaction solutions by reducing the cost associated with trade and documentation processes. It is expected that the crypto currency banking market will result in reduced traditional market security instabilities.
Market Size and Forecast
The global Cryptocurrency banking market is anticipated to record a significant growth over the forecast period i.e. 2019-2027 owing to increasing adoption of crypto currency for transactions. There are around hundreds of crypto currencies being traded in the market on the basis of a shared public ledger between participants without any central authority. The market is segmented by services, by key industry sectors, by application and by crypto currency. The key industry sector segment is further segmented into wallet, exchanges, payments and mining, out of which, the exchanges segment is anticipated to hold the leading share in the market on the account of their function to provide liquidity, a market place for trading and price discovery along with their service of selling and buying cryptocurrencies and digital assets from national currencies and other crypto currencies. The wallets segment is anticipated to witness significant growth during the forecast period on the back of the ability to securely send, receive and store the cryptocurrency by using cryptographic keys management. The variety in the wallets ranging from open source to closed and small to large wallets is expected to drive the market growth. However, it is predicted that with time, the line between the wallets and exchanges segment will blur, leading to emergence of a universal platform. On the basis of cryptocurrency, the market is segmented into bitcoin, ether, dash, monero, ripple, litecoin and others, out of which the bitcoin segment is anticipated to have leading share in the market during the forecast period. Dash and Monero combined are expected to witness significant market growth on the back of attacks on etherum ecosystem. Bitcoin is supported by wallets, exchanges and payment services as a result of which it holds a major market share.
Growth Drivers
Ease of Access and Awareness
The ease of access and buying cryptocurrency is estimated to drive the market growth. The customer is just required to download wallet, add money and scan with the phone to earn a bitcoins. There are numerous methods to buy the currency, for instance, online exchanges such as Coinbase and Kraken provide such services. The increasing technological familiarity and efforts of different groups in order to make the general public familiar about the new technology is anticipated to drive the market growth.
Initial Coin Offering Purchase Machines and Geopolitical Stability to Drive the Market Growth
The initial coin offering is one of the driving forces for global cryptocurrency banking market in which the company issues a token or cryptocurrency against the service provided. The cryptocurrency is expected to have an edge over the local volatile currency and geopolitical risks. In some cases, for instance, businesses with developing counties have resulted in complexity, uncertainty and unreliable transactions. The crypto currency is anticipated to provide wall against these hazards of unpredictable market place.
Restraints
Challenges and Risk Factors to Backlash the Market Growth
The recent cases of fraud and IT security have been weighed as the highest challenge various companies face. The sudden increase in the market prices has resulted in increasing criminal cases and cyber-attacks leading to loss of numerous customer funds and data breach. In some cases it has been observed that the losses were so high that the exchanges were closed and the customers never received refund. The companies face the challenge of maintaining a good relationship with the banking institute and money transfer operators since the high cost and the regulatory compliance system pose a big challenge for the crypto currency payment providers. Additionally, the tax imposed on mining profits and tight regulations on cryptocurrency mining adoption coupled with problems faced by payment rails in converting cryptocurrency to the national currency are factor expected to restrain the market growth during the forecast period.
Market Segmentation
Our-in depth analysis of the global cryptocurrency banking market includes the following segments:
By Key Industry Sectors
- Exchange
- Payments
- Wallets
- Mining
By Services
- L0an & Credits
- Payments
- Clearance & Settlement System
- Fundraising
- Securities
- Trade Finance
By Cryptocurrency
- Bitcoin
- Ether
- Dash
- Monero
- Ripple
- Litecoin
- Others
By Application
- Trading
- Payment
- Remittance
By Region
On the basis of regional analysis, the cryptocurrency banking market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in Asia-Pacific is expected to have leading share during the forecast period owing to the presence of key market players in the region coupled with the technical development and internet revolution. The employment rates in this industry is high in this region which is further estimated to increase the market growth. The market in Europe is predicted to witness significant growth on the back of numerous technological advances in the region coupled with the high usage of wallets. Further, the market in North America is anticipated to hold a significant market share on the back of growing usage of wallets by the population.
The global crypto currency banking market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
- Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis.
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis
Top Featured Companies Dominating the Market
- BiTex
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Armory
- Coinbase
- Coolbitx
- Xapo
- Solidi
- Safello
- Volabit
