Cryptocurrencies which are designed to use for peer-to-peer transactions without being liable to any government or central bank are the latest financial innovations explored not only for the reasons of their being but also for potential risks and opportunities in the financial industry. There are thousands of cryptocurrencies with various design goals. These design goals are to provide a digital currency alternative to cash (Bitcoin, Monero and Bitcoin cash), to support payment system at low-cost ( Ripple, Particl and Utility Settlement Coin),to support peer-to-peer trading activity by creating tokens ( RMG and Maecanas), to facilitate secure access to a good or service in peer-to-peer trading (Golem, Filecoin) and to support underlying platform or protocol ( Ether and NEO). These design goals mentioned won’t be exhaustive as new cryptocurrencies are being created every week. Blockchain is the underlying technology for most of the cryptocurrencies.
The cryptocurrency market is segmented based on the market capitalization of large number of cryptocurrencies. The cryptocurrencies overlap with key areas of monetary and financial system. Given their rapid growth, complexity, high volatility and potentiality for facilitating illicit activities, regulators and policy makers across the world are bothered about their inclusion into the existing system and revising the existing systems to fit them, if included.
Key Market Trends
A brief on the Volatility in the Market Capitalization of Cryptocurrencies
The evolving nature of this market with new cryptocurrencies created every week it is difficult to know how big the cryptocurrency market is. A wide scope of market exchanges for cryptocurrency trading, spread across the globe because of their privacy protection features as well as rapid growth, extreme price volatility, and market illiquidity add to the complexity of the cryptocurrency market. The market capitalization of cryptocurrencies over the years shows how high the price volatility of the market is.
The estimated cryptocurrency market capitalization, for example, during the month of January 2018, varied between 400 billion USD and 800 billion USD which was at 566 billion USD at the beginning of the year 2018 and finally settled at 128 billion USD by the end of the year 2018. In terms of transaction volumes, bitcoin alone had the highest number of 200,000 average daily transactions.
Adoption of Blockchain Technology Increasing on a Robust Pace
Enterprise adoption of the blockchain technology has quietly reached a tipping point across multiple use cases. Companies who have recognized value from their initial pilot projects are now moving towards turning these projects into production. Specifically there is still uncertainty about this technology in the areas of regulations and governance, but the adoption of blockchain for financial services, identity, trade and other markets are increasing.
Global blockchain spending will be led by the banking industry followed by discrete manufacturing and process manufacturing with a combined market share of about 50% of overall spending. In the banking industry, the spending will be driven by two of the largest use cases - cross border payments & settlements and trade finance & post-trade settlements.
Spending on blockchain solutions will be the highest in the United States followed by Western Europe and China. All the regions shown in the infographics are expected to see phenomenal growth in the coming years.
The report includes different segments like coin product developers, mining services, cryptocurrency exchanges, wallet companies, etc along with a note on recent mergers and acquisitions that shaped the ecosystem.
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Table of Contents
1.2 Market Definition
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases
4.1.1 A Brief on the Structure and Technological Aspects of Cryptocurrencies
4.1.2 Price Volatility of the cryptocurrency market
4.1.3 Market Capitalization of Major Cryptocurrencies
4.1.4 Rationale for widespread Crypto Mining Areas Across the Globe
4.2 Major Concerns for Policymakers About Cryptocurrencies
4.2.1 Effects of Cryptocurrency Market on Economic Efficiency and Growth
4.2.2 Impact on Financial Stability due to Cryptocurrency Adoption
4.2.3 Effects on Monetary Policy due to Cryptocurrency Adoption
4.2.4 Effects on Fiscal Policy due to Cryptocurrency Adoption
4.2.5 Probable ways of Taxation of Cryptocurrency Market
4.2.6 Cons of Cryptocurrency Adoption into Financial Ecosystem
4.2.7 Tools at the Disposal of Policymakers to Counter the Cons of Cryptocurrency Adoption
4.3 A Brief on Investment Outlook in Cryptocurrency Market
4.4 Latest Developments in the Cryptocurrency Market
4.5 Market Drivers
4.6 Market Restraints
5.1.1 Americas (US, Canada, Latin America and Caribbean)
5.1.5 Middle East & Africa
5.2 By Design Goals
5.2.1 Digital Cash Coins
5.2.2 Payment Infrastructure Tokens
5.2.3 Securities Tokens
5.2.4 Utility Tokens
5.2.5 General Platform Tokens
5.3 By Market Capitalization
5.3.4 Bitcoin Cash
6.2 Mergers & Acquisitions
6.3 Segments and Company Profiles
6.3.1 Coin Product Developers
6.3.2 Mining Services
6.3.3 Cloud for Bitcoin
6.3.4 Cryptocurrency Exchanges
6.3.5 Wallet Companies
6.3.6 Payment and Trading Solution Providers