Without a doubt, cryptocurrency is here to stay; the market is growing steadily, it may not be as fast as most crypto enthusiasts anticipate, but there is noticeable growth.
As of June 24, 2021, the cryptocurrency market cap stands at 670.44 billion US dollars. Before this, crypto peaked on 5 April 2021 when the market cap exceeded 2 trillion US dollars.
The market once had peak trading volumes around $3 billion per day.
These figures are pretty impressive for a relatively young market (12 years old). Crypto has indeed come a long way, with a lot of ups and downs, twists and turns. The big question on everyone’s lips is what does the future hold?
Future of the Crypto Market
New research carried out by Global Market Insights, Inc. Projects that the Cryptocurrency Market size is set to exceed 1.8 billion US dollars by 2027.
Several factors are poised to influence the growth of cryptocurrency over the said period, factors like rising in the overall adoption of crypto, increased investment, new enterprises operating in the blockchain.
Legally, there is a back and forth between governments when it comes to accepting Bitcoin, China, Nigeria, and India all taking a hostile stand; this is expected to change as governments around the world are looking for a new way to regulate blockchain framework in other to tackle vices like money laundering. So expect a boost in cryptocurrency and other digital currencies.
Another factor expected to push up cryptocurrency market growth is the growing popularity and the role it plays across different sectors; expect to see cryptocurrency being used in the Healthcare sector, education, travel, and more.
The market is projected to grow at a CAGR of over 10% between now and 2027; this growth will be influenced by crypto’s diverse use cases and the different industries.
This diverse use case can be seen in the move by Kessler Enterprise, Inc. partnership with BitPay; this partnership is aimed at boosting the acceptance of cryptocurrencies like Bitcoin and Dogecoin in the hospitality industry.
Improved blockchain technology, its diverse use case, and growing penetration is boosting the market growth.
We are seeing more managed money and, to an extent, institutional money entering the [crypto] space. Anecdotally speaking, I know of many people who are working at hedge funds or other investment managers who are trading cryptocurrency personally; the question is, when do people start doing it with their firms and funds?
– Olaf Carlson-Wee
Olaf Carlson-Wee’s claim shows that we already have many people interested in cryptocurrency, and once this factor comes to play, we will witness a growth in blockchain market size.
Based on research carried out by The World Economic Forum, there is going to be a growth and acceptance of blockchain in the global economy; it is expected that by 2027, about 10% of the world’s GDP is going to be stored on blockchain technology. With these numbers the cryptocurrency market is currently doing, trading on platforms like bitcoin-code.io is a major increase in it’s pace.
Cryptocurrency and Technology
The concept of blockchain, as stipulated by Satuchi Nakamoto in the first-ever whitepaper, was to decentralize transactions monitoring.
Without a central authority, transactions made by users are validated by other users (miners).
The mining process involves creating hash codes to encrypt the transactions. The entire transaction process requires high computing power. The first protocol proof of work was centered on mining power, this discouraged mining. With subsequent protocols mining became easier making crypto more attractive.
China currently leads the way with about 70% of the world’s Bitcoin mining pool; this means most Bitcoins come from China probably because of its affordable electricity and most mining equipment are produced there.