In the latest report released by MarketsandMarkets, the cryptocurrency market gears up to reach a value of $1.4 billion by 2024. It’s essential to note that this doesn’t refer to the total market capitalization of cryptocurrencies, which currently sits at around $200 billion. Instead, this points to the market’s active value.
The report highlights the growth that will come from the hardware market. Most prominently, mining hardware will continue to increase in sales, thanks to the growing number of miners who want to capitalize on the high potential ROI. There will also be considerable growth in remittances and e-commerce. The report also shows that small and medium enterprises stand to gain the most from Distributed Ledger Technologies.
One of the most significant market drivers is the transparency of digital assets and blockchain technology itself. Also, the high remittances in developing regions, fluctuations in monetary regulations, the high cost of cross-border remittances, and the increase in institutional investments will have a significant impact on the overall growth of the market.
Cryptocurrency trading is also expected to get busier in the coming years. Day traders continue to buy and sell digital coins according to a Bitcoin Profit review despite the steep decline in crypto prices. While the volatility in prices isn’t as wild as last year’s, many investors and traders remain positive. And as new coins enter the market, day traders will only become more active as they have more coins to buy and sell.
The report also mentions the biggest challenges to the growth of the cryptocurrency market. The biggest of which is regulatory uncertainty. This year, many countries have enforced stricter laws surrounding cryptocurrencies. Some countries have already banned cryptocurrency exchanges to cut public access to digital assets.
More importantly, though, is the steep learning curve involved in learning crypto. The layman cannot fully comprehend how a coin works by merely reading a whitepaper. An increasing number of cryptocurrency projects are now finding ways to explain what their tokens are, how they operate, and where they’re headed in the future to help potential investors understand their technology.
The scaling problem also remains at the center of discussion. Many skeptics continue to criticize cryptocurrencies, stating that there will never come a time when digital currencies will replace fiat money. Clearly, cryptocurrencies have the potential to break the norms, but there’s still a long way to go before people would regularly pay for goods and services using cryptocurrencies.
Another interesting finding is that cryptocurrencies offer the most benefit to developing economies. While several investors are busy trading coins for profit, many cryptocurrency projects focus on enhancing the lives of people in impoverished nations. For the unbanked populations of the world, cryptocurrency can prove to be a life-saver, allowing them to exchange value even without traditional banks in their area. Many digital coins are also specifically created to reduce cross-border payment fees. Ultimately, this provides access to global markets, boosts liquidity, and enhances the profitability of e-commerce businesses.
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