On March 21, 2020, a new report by MarketWatch stated that the global cryptocurrency would be driven by extensive internet adoption in the world by the year 2025.
According to MarketWatch, the insight is based on a recently published Crypto market forecast report by Fortune Insight, which groups key market insights by components, process, type, end-user, and geography.
The main players that are projected to push for cutting edge technology and innovation are led by Microsoft, Intel Corporation, NVIDIA, Coinbase, AlphaPoint, Xilinx, BitGo, Inc., Bitfury and BTL Group of companies.
Some of the key accomplishments in the crypto industry happened in 2018, including Bitstamp exchange purchase by NXMH for about $350M, BitTorrent’s purchase by TRON for $150M. Morgan Stanley investment firm also declared Bitcoin and altcoins as a “new institutional investment class.”
The US and Canada Lead the Pack with the Most Demand and Adoption Stats
The report points out North America as the leading region in cryptocurrency adoption due to high demand. Both the US and Canada represent 27% of crypto holdings, 39% participants, 18% of global crypto transactions, and 19% of crypto payment startups.
Meanwhile, in Asia, cryptocurrency adoption is expected to grow at a higher Compound Annual Growth Rate (CAGR) due to the witnessed increasing number of crypto transactions. Currently, Asia has 36% crypto industry participants, 27% of exchanges, 19% of crypto wallets, and 33% of all crypto payment companies.
The rise in demand for e-service in Europe has made it the leading region in friendly crypto regulation to legalize cryptocurrency financial transactions under financial service agencies.
“In the regions where people have more smartphones than bank accounts, cryptocurrencies represent an opportunity to improve the regional financial environment owing to safety and offering time and cost-saving features for the users.”
For instance, in Germany, cryptocurrencies held for less than a year are considered private currency and exempted from payable taxes. In Asia, Japan has also taken major steps with crypto regulation to boost crypto adoption in the Asia Pacific region.
Cryptocurrency Innovations are the Future of Digital Payments
Cryptocurrency now presents attractive investment opportunities and features, which will also streamline digital payment systems by making them faster, cheaper, and more convenient.
“It has a decentralized system which means that they are controlled by market dynamics and cannot be influenced by any new monetary policy of the government or bank globally.”
While these factors will be key market drivers, cryptocurrencies face two major challenges: stringent regulation from governments and lack of technical understanding.