The bitcoin technology market is anticipated to grow at a lucrative growth during the forecast period. Significant advantages over the conventional banking system are expected to provide growth to the market during the forecast period. Bitcoin technology market is growing owing to the fact that the use of bitcoin will reduce the inflation treats to almost zero. The transaction done using bitcoin costs no additional charges, hence profiting both the seller and the buyers. In addition to this, the low transaction fees of bitcoins will also benefit the SME’s with a limited budget. Moreover, significant funding to the bitcoin start-ups is also fuelling the market growth. 

Restriction by the government of various economies on the cryptocurrency is a major restraining factor for the bitcoin technology market. As of July 2020, Bitcoin is illegal in Algeria, Egypt, Morocco, Bolivia, Ecuador, Nepal, and Pakistan. Moreover, several countries have banned banking related to cryptocurrency which includes several major economies such as China, Canada, Russia, Saudi Arabia, and Taiwan. Moreover, the mining of bitcoin has adversely affected the environment. In 2018, as per the study of the Technical University of Munich, bitcoin has emitted over 22 MT of carbon dioxide which is more than the total emissions of several cities such as Vienna and Las Vegas. It is a key challenge for the bitcoin technology industry witnessing to the upcoming climate change in the near future. 

Segmental Outlook 

The global bitcoin technology market is segmented based on the services and end-user. Based on the services, the market is sub-segmented into exchanges, remittance services, and payment & wallet. Further, based on the end-user, the market is sub-segmented into BFSI, e-commerce, media & entertainment, hospitality, and others. 

The BFSI segment will be the largest segment by end-user 

The BFSI segment is anticipated to hold the largest share with a significant CAGR in the bitcoin technology market as the use of bitcoins can aid banks in saving billions of revenue by reducing processing costs. Additionally, the increasing activities of banks and financial institutes to keep up with the bitcoin technology market trends will also aid in market growth. For instance, in August 2019, financial software firm Bantotal came into partnership with cryptocurrency exchange Bitex in order to expand its payment system on bitcoin blockchain across Latin America. Moreover, Ohio a state in the US started accepting bitcoin tax payments by utilizing BitPay’s transaction platform. These increased activities are anticipated to drive the shares of BFSI segment in the bitcoin technology market.

Global bitcoin technology market Share by end-user, 2019 (%)

Regional Outlooks

The global bitcoin technology market is further segmented based on geography including North America, Europe, Asia-Pacific, and the Rest of the World. North America is expected to hold the largest market share in the bitcoin technology market during the forecast period. The growth of the bitcoin technology market in the region is owing to the early adoption of the new technological advancements across the region. Additionally, the presence of a large number of bitcoin vendors, high penetration of digital banking, favorable regulations, and considerable awareness related to bitcoin across the region is also anticipated to provide a significant market share to the region with a lucrative growth rate. In addition, the increase in bitcoin mining activities across the region is also expected to drive the bitcoin technology market of the region.

Global Bitcoin Technology Market Growth, by Region 2020-2026

Asia-Pacific will augment with the lucrative growth rate in the bitcoin technology market 

Asia-Pacific is anticipated to witness a lucrative growth rate in the bitcoin technology market owing to the increasing number of bitcoin trading companies across the developing economies such as China, Singapore, Japan, and India. Moreover, the increasing awareness about the working and advantages of cryptocurrencies including bitcoin will fuel the bitcoin technology market. Additionally, the changes in regulatory frameworks in favor of bitcoin is also expected to fuel the bitcoin market across the region. For instance, in March 2020, the supreme court of India lifted the bans that regulated financial institutions from providing services to crypto businesses.  

Market Players Outlook

The key players of the bitcoin technology market include Binance, Bitstamp Ltd., Blockstream Corp. Inc., BlockCypher, Inc., Coinbase UK Ltd., Luno Pte. Ltd., BitMain Technologies Holding Co., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including merger, and acquisition, collaborations with government, funding to the start-ups, and new product launches to stay competitive in the market. 

Recent Activities

• In June 2020, BitMain Technologies Holding Co. announced the launch of a new bitcoin mining machine called Antminer T19. 
• In October 2019, BitGo Inc. announced the acquisition of Hedge. The acquisition is intended as a move into the increasingly popular area of providing a form of interest payments to holders of cryptocurrencies.
• In January 2019, Blockstream Corp. Inc. has entered a joint venture called Crypto Garage with Digital Garage and Tokyo Tanshi that is based in Japan. The joint venture is intended to build Bitcoin and blockchain solutions for the Japanese institutional market.

The Report Covers

• Market value data analysis of 2019 and forecast to 2026.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global bitcoin technology market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.