The global Bitcoin (BTC) payments market will reach $3.7 billion by 2031, posting a 16.3% compound annual growth rate (CAGR) between 2022 and 2031, with private keys and hardware driving the expansion of the sector, it forecasts. Allied Market Research in a study published on October 24.
According to the document, the operational demand for efficiency and transparency in payment systems, together with the growth of data security services and the increase in the demand for remittances in emerging economies are some of the main factors that support the growth of the sector in the coming years. The report also notes:
“Furthermore, rising demand for Bitcoin among banks, financial institutions and untapped potential in emerging economies are expected to provide lucrative opportunities for expansion of the Bitcoin payments market during the forecast period.”
In 2021, the private key sector accounted for three-quarters of the global Bitcoin payments market share, according to the report, and is expected to maintain its dominant position throughout the forecast period, at almost 20.3%. of CAGR to 2031, followed by the hardware sector which is set to grow 19.8% over the same period.
E-commerce transactions are likely to remain relevant in the sector, growing nearly 20.2% by 2031, according to the report. The Asia-Pacific region is projected to continue to dominate the market through 2031, although the fastest growth is expected to come from North America, with a CAGR of 18.6% over the period.
Referring to the obstacles and challenges in this space, the report acknowledges that high implementation costs and low global awareness of Bitcoin use may hamper the progress of the sector. The report notes:
“Distributed ledger technology has spread from cryptocurrency to a wide number of applications in the financial and government industry. However, numerous people and financial and government industries across the developing nations like India, Africa and Australia they are less aware regarding the transactions made with Bitcoin payments, which hinders the growth of the Bitcoin payments market worldwide.”
As we told you before, the cryptocurrency bear market has affected the way people pay with digital assets, But Bitcoin remains an important payment tool despite enormous volatility, accounting for more than 50% of all sales on payment service provider BitPay’s platform. The data revealed that BTC payment sales volume on BitPay peaked at 87% in 2021 before declining during the 2022 bear market.
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