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Research and Markets.com has brought a report on the Cryptocurrency market which highlights the factors contributing to the growth of the industry at a CAGR of 7.1% from 2021 to 2026.
The pandemic has left vulnerable to almost everyone the world over. But one such industry that has seen a huge surge is the cryptocurrency market. As per Research and Markets.com, the global cryptocurrency market is expected to grow from $1.6billion in 2021 to $2.2billion by 2026. It is expected to flourish at a CAGR of 7.1%.
It means that two factors contribute to the growth of the crypto market. They are transparency or distributed ledger technology and growth in venture capital investments.
Hardware considered being the largest contributor.
It is estimated that the hardware industry is the largest contributor to the growth of the cryptocurrency market in 2021. It holds the largest size.
The concept of cryptocurrency is different from its peers. The miners approve the transactions of other users when the monitoring of transactions is decentralized. To validate the transactions, high computing power is required. Hence, the hash codes are created to encrypt the transactions.
The miners require distinctly powerful and efficient hardware to generate the hash codes. For the new blocks, miners have to get as many hash codes as possible. The rewards are given to the miners for mining. The hardware sector within the crypto market has been divided on the idea of processors into GPUs, CPUs (Central Processing Units), FPGAs, and ASICs.
Mining the other contributor for the growth of the crypto market in 2021
The mining process is another contributor that holds an exceptional place in the cryptocurrency market. As per the reports, the mining process holds a larges share in the growth of the cryptocurrency market. The reason is that mining is the integral process for the generation, transmission, and validation of transactions in cryptocurrencies.
The currency is delivered in a secure, stable, and safe environment from a payer to a receiver. It isn’t always managed with the help of using any authority as within fiat currency. It is being held by the centralized authorities, which regulate the transactions. On the other hand, cryptocurrencies are decentralized and work on a peer-to-peer basis.
APAC sees the growth during the forecast period
According to Research and Markets.com, the APAC region sees the highest CAGR growth during the forecast period. APAC region covers markets from China, Japan, South Korea, and the Rest of APAC, Singapore, Malaysia, Thailand, India, Australia, and New Zealand. Among them, China is the largest market due to important mining companies’ cheap electricity and presence.
Bitmain from China, NVIDIA, Xilinx, Intel, Ripple Labs, Coinbase, BitGo, and Alcheminer from the US, Ethereum Foundation from Switzerland, Bitfury group from the Netherlands, Binance Holdings, and Canaan Creative from China, are some of the companies which will dominate the cryptocurrency market.
The crypto market is developed on application, products and components, technology, and geography. Under this report, the traders can find out about the opportunities, challenges, major drivers, restraints pertaining to the cryptocurrency industry. The forecast is given till 2026.
The report also highlights the APAC opportunities in the cryptocurrency market, mode of payment like peer-to-peer payment to dominate the crypto market during the forecast period, pool mining, trading. The US segment will hold the largest share of the crypto market in North America in 2021. South America will see growth at the highest CAGR from 2021 to 2026.
Bitmain from China, NVIDIA, Xilinx, Intel, Ripple Labs, Coinbase, BitGo, and Alcheminer from the US, Ethereum Foundation from Switzerland, Bitfury group from the Netherlands, Binance Holdings, and Canaan Creative from China, are some of the companies which will dominate the cryptocurrency market.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
