By Type- Segment Analysis
Bitcoin payment ecosystem market is segmented into hardware, software, services and others. The hardware segment held the highest market share in 2019. It requires equipment to operate and solve cryptography. This hardware consists of the thousands of miners for running the computers around the world. There are thousands of machines around the world operating the Bitcoin program or the Bitcoin application essentially. This hardware is specifically designed to validate block and hash by finding Nonce. In November 2019, SecuX launched crypto POS payment ecosystem to complement hardware wallets. This enables users to pay using the app on either vending machines or through physical stores. Such product launches propels the market growth.
By Application- Segment Analysis
Trading marketplace segment held the highest market share of bitcoin payment ecosystem in 2019. Moreover, it is anticipated to witness the significant market growth during the forecast period 2020-2025. Bitcoin transactions have many benefits, such as improved transactional security, fraud prevention, regionalized network, low prices, and customer payroll safety, and fast foreign transactions. Such aspects help to raise the bitcoin payment network adoption growth. In February 2020, India-based Crypto Exchange CoinDCX collaborated with the OKEx Digital Asset Exchange. Through this alliance, OKEx gain exposure to the Indian sector, which will open the doors to huge liquidity in one of the fastest growing economies in the world. Around the same period, CoinDCX would have exposure to OKEx’s vast history in designing new goods to add more creative service services to the industry.
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Geography – Segment Analysis
North America held the highest market share of the bitcoin payment ecosystem market in 2019. This rise is attributable to the reason that much of the area bitcoin is viewed as a way of exchange for payment rather than currency purposes. Although the fact is not legally regulated by the government, the use of digital currency is still perceived by many developed countries such as the US, UK Japan and Singapore. The acceptance by consumers and retailers of digital currencies is driving the market. In addition, the North American market is dominated by the success of bitcoin mining and the involvement of a number of main players. However, the APAC region is anticipated to observe the significant market growth during the forecast period 2020-2025. The market growth is attributable to factors such as technological developments, acceptance of virtual currency for some platforms within Japan and Taiwan, strategic collaborations, partnership of key players and others. In December 2019, Wirex entered into partnership with i2C on blockchain-based payments card in Asia-Pacific. The payment card enables users to transact in more than 150 digital and traditional currencies including Bitcoin, British pounds, Australian and U.S. dollars, Japanese Yen and other currencies. It also enables users to pay with debit, credit or digital currency and receive benefits. Such partnerships and growing popularity boosts the market growth.
Drivers – Bitcoin payment ecosystem market
Bitcoin payment transfers maintain transparency as all transaction-related details is registered on a centralized digital database known as the blockchain. All modifications in the blockchain can be presented freely by both stakeholders, thereby ensuring transparency in operations. In fact, these records are unchangeable, ensuring that it cannot be reversed or erased. This non – repudiation depends on proof-of – work to protect a given block by formidable computing resources and analysis, which, in effect, benefits auditors and enables bitcoin transactions through enhancing data protection.
Challenges – Bitcoin payment ecosystem market
Although financial regulators around the world are trying to develop universal principles, regulatory approval remains one of the most daunting challenges. Distributed ledger technology is currently in its infancy, posing a range of concerns at regional and international level for regulators and policymakers. The regulatory status remains uncertain due to issues regarding normalization and interoperability
Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the bitcoin payment ecosystem market. As of 2019, the market for bitcoin payment ecosystem market is consolidated with the top players including Mt.Gox, Butterfly labs, Coinbase, Coinsetter, BitPay, Avalon, BitcoinX, Nvidia, ATI, Bitcoin Foundation and among others.
- In April 2020, Visa, a major payment company, has joined hands with Fold, a San Francisco-based Bitcoin cashback app, to deliver a credit card that will enable customers to receive Crypto currency bonuses relative to collecting money. Users will get first-hand experience with the most valuable crypto currency through strategic collaboration.
- In January 2020, BDAM Partners With Zapaygo.com to augment Crypto Adoption. This allows consumers can start to actively use and spend crypto currencies and fiat at more than 900,000 stores, hotels, restaurants, stadiums and venues.