The blockchain market is one of the biggest markets in the whole world. It has especially expanded and shown us its power last year in 2020 when in the middle of the severe pandemic, Bitcoin has jumped to the very impressive all-time high rate. Talking from the perspective of the previous year, the value of the BItcoin was $3.0 billion and is supposed to grow to $39.7 billion within a five year period only. This phenomenon is known as the Compound Annual Growth Rate (CAGR) and has an estimated rise of 63% before 2025.
The forecast for the impressive growth of the value of the cryptocurrency is not an imagination. It is rather the uniting of all the facts and features the cryptocurrency gathers. The factors such as increased interest in the cryptos, the simplified business process, and the demand for supply chain management applications that have integrated blockchain technology are the key drivers for the overall Bitcoin markets.
Blockchain Market
The private blockchain type segment to be the largest contributor to the blockchain market growth during the forecast period. The private blockchain type is estimated to hold the largest market size in 2020. This type of blockchain is a shared database or ledger that is secured by traditional security techniques, similar to the limited user rights. Most usually, the security of the fund is provided by the blockchain private key, which is very anonymous and secret information, only known to several organizations in total.
A private blockchain is a category of blockchain technology, where the permission is kept centralized and all under the regulation of a single organization. The permissions can also be limited to the users, according to the organization’s policy. The private blockchain, which had the biggest share of the 2020 blockchain market is the perfect synthesis for the business use cases.
The massive rise of the SME segment was noticed at a higher rate in the blockchain market during the forecast period. The SME segment is even going to grow at a higher CAGR, due to the need for steaming the business process cost-effectively across the whole segment. While blockchain technology has definitely evolved a lot, its adoption is still in the experimental phase. Though, the adoption rate is experiencing some of the biggest changes and should even experience more as they reduce the infrastructure cost as well as increase transparency.
Some of the biggest and the most important areas with the Bitcoin and generally blockchain adoption processes are finances and gambling. While finances are definitely one of the biggest cases, you can actually consider when holding a drastic share in the market, the gambling industry is no less important. According to the reports the financial, especially the banking segment has the biggest share in the overall market size.
Within the forecasted period, the share and the importance of the banking and the financial share are expected to increase even more. The massive adoption process began when there was a significant change in the procession and operation of the financial services such as secure and safe transactions for customers. Blockchain implementation has definitely positively affected the customer experience.
High compatibility with the financial services industry ecosystem, the rise in cryptocurrencies and the Initial Coin Offering, rapid transactions, safety and security, the cut of the ownership cost, are just a few factors contributing to the massive implementation of blockchain technology and cryptos in the financial industry.
On the other hand, there is the gambling industry, which is also one of the biggest contributors to the popularisation of cryptocurrencies. 2020 was an especially important year for crypto lovers. Whenever most of the venues have been closed and the online industry was booming, most of the online casinos took the decision to support Bitcoin and other cryptos. This was perhaps one of the best decisions, as the Bitcoin casino and the online casino supporting the cryptos occupy now the biggest share of the market. The implementation of the Bitcoin and cryptos in the market has contributed a lot to the player’s experience as well. Offering a BTC bonus without deposit is one of the best options that online casinos use to attract more players. With this being a relatively new approach, casinos try to be fully oriented on customers and offer them the newest and the most cost-efficient options to play with. Besides, there is the transparency and the anonymity of the transactions, which is another important aspect when it comes to gambling online.
The Bitcoin distribution over the regions
Among the regions which have contributed to the popularity of Bitcoin and blockchain technology, North America can be named as one of the leaders. It holds one of the largest market sizes in the blockchain market and shall definitely become a certain leader within the forecasted period. The leadership and the current state of North America are determined by the early adoption of Bitcoin and new technologies by the local organizations and companies. Most of them have recognized the potential for the customer experience in the early stages and have started the adoption process in order to produce the proper business applications.
While we are talking about the regions and the countries, it is very important to consider the shares and the portions of the companies in the global Bitcoin markets. Those companies, which currently contribute the most to the popularity of the Bitcoin and blockchain technology implementation are the following: Microsoft, SAP, Intel, Oracle, BlockPoint, Applied Blockchain, NTT Data, iXLedger, Startis, and more.
Most of those companies have been working with Bitcoin and blockchain technology for years now, though the report says that their shares have especially increased in 2020. This was also determined by the rapid increase in the price of Bitcoin by the end of the last year. Moreover, the shares of companies such as Tesla and Facebook have also increased. Tesla became one of the biggest supporters of the cryptos, while Facebook even came up with its own cryptocurrency, which did not necessarily meet the expectations, though was a valid addition to the global crypto market.
The recent changes
There has been a number of changes in the market for the past one year period. The changes are due to the current global state as well. When the world is experiencing a global economic crisis, cryptos became even more popular and turned out to be a safer asset than any other currency. Thus, many invested in crypto assets, while the companies announced their support for the crypto payment methods.
To highlight some of the biggest changes and development in this industry, let’s briefly recall some of the major events of 2020. Back in February 2020, the Microsoft Lotion was launched and for now, can be used with extreme ease on any platform. The blockchain technology was utilized and upgraded so that the developers can now write programming languages with the ordinary platforms on the CFD languages.
The distribution of the cryptos by components would look like the two leading shares, which is the platform itself and services. If we alight the distribution by the provider, we shall notice that the application providers are the first, the middleware follow, with the culmination of infrastructure providers. As for the type of companies leading in accordance to the type of the companies, it should be topped by the private sector.
As for the application areas, some of the leading ones as mentioned above are the financial and the gambling industries, followed by the manufacturing, media, retail, and e-commerce industries. And last but not the least the distribution by the region, dominated by North America, followed by Canada, the UK, Germany, France, China, and Singapore. The rest of the countries are also working on developing the field in the most efficient way.
Source: Read Full Article