Bitcoin Technology Industry Overview
| Study Period: | 2018 - 2028 |
| Fastest Growing Market: | North America |
| Largest Market: | North America |
| CAGR: | 9.1 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Bitcoin Technology Market Analysis
The bitcoin technology market registered a CAGR of 9.1% over the forecast period 2022 - 2027. Due to the zero risk of inflation, bitcoin has been trending over the years. The bitcoin system was developed with the primary purpose of being finite. Therefore, inflation's threat reaches almost zero without the possibility of issuing excess currency. This point benefits for both the seller and the buyer.
- Bitcoin payments have much lower transaction costs than purchases made with credit and debit cards. SMEs can benefit from this feature because they have a tight budget. Receiving bitcoins is free, and many wallets let users choose how much they want to pay in transaction fees. Higher fees may encourage a transaction to be confirmed more quickly.
- In 2008, the concept of bitcoin was first introduced, and as of April 2022, the market cap of bitcoin is around USD 821.13 billion (according to various exchanges). Blockchain estimates about 19 million bitcoins are in circulation as of April 4, 2022.
- A significant amount of bitcoin transactions were witnessed in the United States in 2021, as per Cambridge Centre for Alternative Finance. Additionally, the ascent of bitcoin was supported mainly by speculative investors. Such high volatility of bitcoins has continued to help institutional investors.
- Bitcoins may be taking another step towards mainstream adoption. For the first time, customers of some US banks will soon be able to purchase, hold and sell bitcoin through their current accounts, according to New York Digital Investments Group, NYDIG. Until now, bitcoin adopters relied on the app from the new generation of fintech players such as free trading brokerage Robinhood, payment giants PayPal and Square, or crypto-centric firms like Coinbase. On the other hand, banks have steered clear of bitcoin for retail customers, where only recently announced plans for allowing wealthy wealth management clients to wager on cryptocurrency.
- Growing interconnection between the existing financial system and a developing crypto ecosystem raises worries about spillover effects that may affect systemic stability. Although it now indicates differently, cryptocurrencies have long been a tool for diversification. The International Monetary Fund (IMF) published statistics earlier in 2022 showing a relationship between bitcoin and the S&P 500. This fuels worries about investor sentiment transferring from the stock market to cryptocurrency.
- Another developing difficulty with cryptocurrencies is how bitcoins have responded to global emergencies. Russia's attack on Ukraine has sparked huge global support, with bitcoin donations being poured to Ukrainians. It also prompted Russia's alleged use of bitcoin to bypass economic restrictions imposed by numerous countries around the world. This presents a novel problem for corporations in determining whether monies leaving their platforms are used for illegal conduct.
- Bitcoin and the companies dealing in blockchain are not directly impacted by the lockdown. Investors are looking for assets that could withstand the slowdown triggered by the COVID-19 lockdown imposed by governments. While some look at the safety of government bonds, others are taking recourse to gold.
Bitcoin Technology Industry Segments
Bitcoin is a consensus network that enables a new payment system and is entirely digital money. It is the first decentralized peer-to-peer payment network powered by its users with no central authority or intermediaries. Bitcoin can also be seen as the most prominent triple entry book-keeping system, which is now used in sectors like BFSI, E-Commerce, and Hospitality.
The Bitcoin Technology Market is segmented by Service (Exchanges, Remittance Services, Payment & Wallet), End-user Vertical (BFSI, E-Commerce, Media & Entertainment, Hospitality), and Geography.
The study considers the impact of the COVID-19 pandemic on the market to arrive at the growth rates of various segments.
| By Service | |
| Exchanges | |
| Remittance Services | |
| Payment & Wallet |
| By End-user Vertical | |
| BFSI | |
| E-Commerce | |
| Media & Entertainment | |
| Hospitality |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
Bitcoin Technology Market Trends
This section covers the major market trends shaping the Bitcoin Technology Market according to our research experts:
BFSI to Occupy the Largest Market Share
- The growing adoption of blockchain or distributed ledger technologies in the sector can help increase investment by the BFSI sector in bitcoins. For instance, by establishing the decentralized ledger for payments (e.g., bitcoin), banking solutions could facilitate faster payments at lower fees than traditional systems.
- Technology can also enhance security while borrowing money and provide lower interest rates by eliminating the need for gatekeepers in the loan and credit industry. Also, by replacing the hefty bills of lading process in the trade finance industry, the technology can provide more transparency, security, and trust among trade parties internationally.
- Facilitating payments is highly profitable for banks. From letters of credit to payments, cross-border transactions generated 40% of global payments transactional revenues in 2016. Therefore, banks can also leverage bitcoin payment services, like remittance services, to utilize these opportunities.
- Apparently, J.P. Morgan, in the first half of 2022, some 300 banks intend to introduce bitcoin trading through mobile apps. The NYDIG, a bitcoin financial services company that has already made some inroads into the banking industry, including a sub-custody agreement with United States Bank, is partnering with many of these banks. Not the first bank to enter the cryptocurrency market is Synovus Financial. The Oklahoma-based Vast Bank claims to be the first U.S. bank with a national charter to provide cryptocurrency through a mobile app.
- The first major bank to introduce cryptocurrencies to its wealth management clients was Morgan Stanley in 2021. For clients with at least USD 2 million in assets maintained with the bank, Morgan Stanley provided access to the three bitcoin funds.
- Despite bitcoin's dramatic price swings and the increasing governmental crackdown, large financial institutions have invested and expanded their operations. One of the first large Wall Street banks, Bank of New York Mellon, stated in February 2021 that it would keep, transfer, and issue bitcoin for asset management clients.
- The launch will take place later this year, in 2022. Customers will be able to store bitcoin and ether, the two most significant cryptocurrencies, in BNY Mellon crypto wallets built in collaboration with crypto infrastructure provider Fireblocks.
- Moreover, In January 2022, El Salvador’s government announced they would send Congress about twenty bills covering financial markets and investment in securities to provide a legal foundation for issuing bitcoin bonds. The government was drawing up legislation to create a framework to cover corresponding market regulation and issuance of the securities in crypto assets after the Central American country said in November 2021 that it would issue bitcoin bonds.
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North America to Witness the Highest Growth
- North America is one of the most rapidly growing regions regarding bitcoin mining, and vendors offering bitcoin services are also expanding in this region. For instance, Celsius, a global cryptocurrency yield-earning platform, announced investments of over $200 million in mining equipment and positions in Core Scientific, a customizable infrastructure and software solutions for Blockchain networks. These investments serve to scale Celsius' existing interests to make it one of the largest U.S. investors in the Bitcoin mining industry.
- In April 2022, Prime Blockchain Inc., an infrastructure provider for blockchain technology, announced a definitive Business Combination Agreement with 10X Capital Venture Acquisition Corp. II to advance its focus on the blockchain ecosystem. Such instances will accelerate the growth of the bitcoin technology market in the study period.
- Various companies in the market are investing in blockchain technology firms to facilitate the development of bitcoin technology in North America. For instance, In May 2021, Mogo Inc., a digital payments and financial technology company, announced the purchase of approximately 146 Ether (ETH) at an average price of USD 2,780. Ethereum is an open-source, blockchain-based, decentralized software platform that uses its own cryptocurrency, Ether.
- As the awareness of bitcoin is increasing, the government in the region is taking the initiative to promote the usage of bitcoin technology. For instance, in March 2022, the Canadian government allowed its citizens to use Bitcoin (BTC) as legal money in the country. It will help boost the bitcoin technology in North America in the future.
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Bitcoin Technology Market Competitor Analysis
The bitcoin market is fragmented, with emerging startups coming up in recent years which are offering commercial activities related to bitcoin. In the current scenario, most online merchants have started enjoying the anonymity and efficiency of bitcoin payments, which allows them to cut overhead costs compared to credit or debit card transactions.
- April 2022 - Blockstream construction has begun on a new solar-powered bitcoin mining facility. The 3.8 Megawatt (MW) Tesla Solar PV array and 12 megawatt-hours (MWh) Tesla Megapack will power the open-source, solar-powered bitcoin mining facility at a Blockstream Mining site in the United States. This significant development supports the previously announced project between Blockstream and Block Inc.
Bitcoin Technology Market Top Players
Blockstream Corporation Inc.
Coinbase Inc.
Coinify ApS
Bitstamp Ltd
Unocoin Technologies Pvt Limited
*Disclaimer: Major Players sorted in no particular order
Bitcoin Technology Market Recent Developments
- September 2022 - Fidelity has introduced the option to invest up to 20% in Bitcoin for the US 401 (k) retirement investment plan. The financial services firm says bitcoin represents a long-term investment in future blockchain technology. This investment prospect will become available by mid-2022 to 23,000 employers that employ Fidelity to administer their retirement accounts.
- August 2022 - Kenanga Investment Bank announced its collaboration with Ant Group to launch cryptocurrency-based applications. The app will change the way wealth management takes place in Malaysia by integrating financial services such as stock trading, digital investment management, cryptocurrency trading, digital wallet, and foreign currency, among others, into a single platform.
Bitcoin Technology Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Decentralized and Borderless Payment System
4.4 Market Restraints
4.4.1 Highly Volatile Currency
4.5 Industry Attractiveness - Porter's Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Exchanges
5.1.2 Remittance Services
5.1.3 Payment & Wallet
5.2 By End-user Vertical
5.2.1 BFSI
5.2.2 E-Commerce
5.2.3 Media & Entertainment
5.2.4 Hospitality
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Blockstream Corporation Inc.
6.1.2 Coinbase Inc.
6.1.3 Coinify ApS
6.1.4 Unocoin Technologies Pvt Limited
6.1.5 Bitstamp Ltd.
6.1.6 itBit Trust Company LLC
6.1.7 Blockchain Luxembourg SA
6.1.8 Kraken (Payward Inc.)
6.1.9 BitPay Inc.
6.1.10 Plutus Financial Inc. (ABRA)
*List Not Exhaustive7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Bitcoin Technology Market Research FAQs
What is the study period of this market?
The Bitcoin Technology Market is studied from 2018 - 2028.
What is the growth rate of Bitcoin Technology Market?
The Bitcoin Technology Market is growing at a CAGR of 9.1% over the next 5 years.
Which region has highest growth rate in Bitcoin Technology Market?
North America is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Bitcoin Technology Market?
North America holds highest share in 2021.
Who are the key players in Bitcoin Technology Market?
Blockstream Corporation Inc., Coinbase Inc., Coinify ApS, Bitstamp Ltd, Unocoin Technologies Pvt Limited are the major companies operating in Bitcoin Technology Market.
Bitcoin Technology Industry Report
Statistics for the 2023 Bitcoin Technology market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Bitcoin Technology analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
