The market valuation for cryptocurrency will surpass $1.8 billion by 2027, according to a report from Global Market Insights.
The market growth is primarily fueled by growing demand for digital assets and secure transactions, the report says. This is additionally augmented by the increasing need for low-cost digital currency payment systems.
The report details that cryptocurrency market size crossed $900 million in 2020. It added that the market is likely to see a compounded annual growth rate of 10% from 2021 to 2027. Increasing volumes of cryptocurrency transactions and their market capitalization are contributing to this substantial growth. For example, compared to $134 billion in January 2020, the market cap for bitcoin exceeded $609 billion by January 2021.
Blockchain technology’s capabilities to reduce costs associated with payment transactions are also contributing to the adoption of cryptocurrency. For instance, several enterprises have used digital currencies to limit the impact of currency fluctuations.
Additionally, distributed ledger technology enables improved trading and tracking capabilities. Blockchain-based global financial systems are also becoming increasingly appealing, incentivizing numerous technology enterprises. These needs will likely contribute to the development of innovative cryptocurrency software and especially hardware components.
Crypto hardware growth
Components needed for the generation of cryptocurrencies will see a boost in the coming years. According to the report, the Graphical Processing Unit (GPU) segment will see a similar compounded annual growth rate of 10%. Cryptocurrency miners ostensibly prefer GPUs over traditional CPUs because of their optimized performance in the mining process.
GPUs offer high-performance efficiency in processing repetitive computations needed for crypto mining. Additionally, Arithmetic Logic Units (ALUs) which assure high extended output in crypto mining applications are likely to increase in availability.
The report expects companies operating in North America to contribute a significant share to the growth of the market by 2027. Multiple technology enterprises with a widespread presence and consistent technological developments will account for this growth.
Many of them have chosen to focus on enhancing crypto mining capabilities. For instance, Marathon Digital Holdings Inc. plans to launch its bitcoin mining pool across the region.