Global Bitcoin (Bitcoin) payments market to reach $3.7 billion by 2031, registering a compound annual growth rate (CAGR) of 16.3% from 2022 to 2031, with private keys and hardware driving sector expansion, Allied Market Research predicted in a report published on October 24.
According to the document, operational demand for efficiency and transparency in payment systems, along with growth in data security services and surging demand for remittances in emerging economies, will be among the key factors underpinning sector growth over the next few years. One.report too said:
“In addition, increasing demand for Bitcoin among banks and financial institutions and untapped potential in emerging economies are expected to provide lucrative opportunities for the expansion of the Bitcoin payments market during the forecast period. .”
According to the report, the private key segment will account for three-quarters of the total Bitcoin payments market share in 2021, and this segment will maintain its dominant position throughout the forecast period, growing at a CAGR of nearly 20.3% by 2031. is expected to occupy This is due to the hardware sector, which is expected to grow by 19.8% over the same period.
According to the report, e-commerce is likely to remain relevant in this sector, growing by nearly 20.2% by 2031. Asia-Pacific is projected to continue to dominate the market until 2031, while North America will grow the fastest, with a CAGR of 18.6% over the period.
Citing barriers and challenges in the field, the report acknowledges that high deployment costs and low global awareness of Bitcoin usage may hamper progress in the field. It said:
“Distributed ledger technology has spread from cryptocurrencies to numerous applications in the financial and government industries. We are not very aware of the transactions made using it, which is hindering the growth of the Bitcoin payment market around the world.”
As reported by Cointelegraph, the crypto bear market is impacting how people pay with cryptocurrencies. Bitcoin is still the dominant payment tool despite high volatility, accounts for more than 50% of all sales on the platform of payment service provider BitPay. The data reveals that his BTC payment sales volume on BitPay peaked at 87% in 2021 before declining during the 2022 bear market.