The last “Cryptocurrencies – Global Report of Strategic Business” (Paywall) has been published, providing for significant growth over the next five years in the cryptocurrency and blockchain space. Valued at $ 2.1 billion in 2024 dollars, the world cryptocurial market should reach $ 5 billion in value by 2030, equivalent to a 15.4%TCAC.
The nature of the common financial transactions has changed with the introduction of secure and decentralized methods of exchange of currencies in recent years. Using blockchain technology, cryptocurrencies can ensure transparency and reduce transaction costs, eliminating the need for intermediaries such as national central banks.
Bitcoin always leads the cryptocurrency market in popularity, although alternatives like Binance Coin, Ethereum and Solana diversify the market. Altcoins have changed how certain people and organizations engage with financial systems, evolving to form what the report calls for more accessible economic opportunities. Altcoins in particular would offer unique features, including decentralized applications (DAPP) and smart contracts.
According to the report, several factors are behind the growth of the cryptocurrency market, including an increasing demand for decentralized financial systems providing autonomy, security and transparency.
Confidence in the use of cryptocurrency also increases due to the lighter implementations of Blockchain technology. These guarantee better protection for transaction files carried out by individuals and institutions. Mistrust and concerns about the volatility of cryptocurrencies have partially decreased to the emergence of stablecoins.
The popularity of digital payments has increased in recent years, in particular from the COVVI-19 pandemic, helping cryptocurrencies to take their place in the financial landscape, the report says.
Large companies and investment companies have recently entered the cryptocurrency market, further supplying growth on the broader market. Adoption by institutions, including venture capital companies, governments and hedge funds means that cryptocurrencies are now increasingly legitimate.
Technological progress has been additional catalysts, interoperability solutions and energy-efficient blockchain protocols approaching many challenges traditionally associated with cryptocurrency space, including environmental and scalability.
The report indicates that the use of blockchain now goes beyond financial transactions and includes the use of technologies such as intelligent contracts, which can use networks such as Ethereum to support more complex functions. For example, contracts can now run agreements without the need for intermediaries, time reduction and strengthening the effectiveness of contractual processes.
There has also been an increase in decentralized financing cases (DEFI), an increasing sector that provides a range of services, loans loans, those who can act independently of conventional banking networks.
The coverage of the report includes the adoption of non-Butins (NFTS) tokens, which, he says, contribute to reshaping several industries which include entertainment, games and art. The use of NFTS widens the scope of blockchain technology beyond simple financial transactions, introducing what the report describes as new opportunities for investors and creators.
Evolution problems, such as slow transaction speeds and high fees, were at least partly treated with technologies like Polygon for Ethereum and the Lightning network for Bitcoin, examples of so-called layer solutions. These allow blockchains to manage a greater number of low-cost transactions by transaction.
Ecological cryptocurrencies and blockchain protocols are becoming more and more popular as the market is looking for means to reduce the environmental impact of cryptocurrency processes based on work.
The report details how young generations want financial systems that offer security, transparency and autonomy. The increased interest in investors in digital assets (rather than traditional choices such as stock market stocks) is another contributor to market growth.
The consumer financial services such as Mastercard and Visa began to integrate cards related to cryptocurrency, allowing consumers to use their digital assets alongside fiduciary currencies in daily transactions.
In addition, the report cites an increase in schemes and rewards based on cryptocurrencies, the progress of mobile applications and the more widespread adoption of electronic wallets as other key instigators behind cryptocurrency and the increased popularity of blockchain. Access to cryptocurrencies has become simpler, users no longer need to be warned in technology.
With education and awareness of blockchain technology, consumer confidence in cryptocurrencies should grow, according to the report.
(Image source: “BMO Digital Banking” by Piggybank Canada is under CC license by 2.0.)
See also: Sam Altman’s World Network in talks with Visa on cryptocal Wallet Integration
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