The bitcoin payment market will reach $3.7 billion by the 2031 Report forecast.

 

Wednesday, October 26, 2022. With demand from banks and emerging economies increasing, private keys and sophisticated wallets will drive the expansion of BTC payments.

The global bitcoin payments market will reach $3.7 billion by 2031, growing at a compound annual growth rate (CAGR) of 16.3% from 2022 to 2031, as private keys and sophisticated wallets lead the expansion of the industry, according to Allied Market Research's report published on October 24, 2022.

According to the relevant economic report, the business demand for efficiency and transparency in payment systems, along with the growth of data security services and the increase in remittance demand in emerging economies, are the key factors that will support the development of the industry in the coming years.

 The report also states:

"Furthermore, increasing demand for bitcoin from banks and financial institutions and untapped potential in emerging economies are expected to provide lucrative opportunities for the expansion of the bitcoin payment market over the forecast period."

In 2021, private critical payments accounted for three-quarters of the total bitcoin payment market. According to the report, this sector is expected to maintain dominance, registering a CAGR of 20.3% through 2031. Accordingly, digital wallets are expected to register a growth rate of 19.8% during the same period.

According to the report, e-commerce transactions are expected to maintain their share of the payments market, growing by nearly 20.2% by 2031.

The Asia Pacific region is estimated to continue to dominate the market through 2031. However, North America's fastest growth rate is expected to be recorded, with a CAGR of 18.6% during the period under review.

The report acknowledges that high operational costs and low global awareness of bitcoin use can hinder the industry's progress.

As it states:

"Distributed ledger technology (DLT) has spread from cryptocurrencies to many applications in finance and administration.

Distributed ledger technology (DLT) is a digital system for recording the transaction of assets in which the transactions and their details are recorded in multiple places simultaneously.

 Unlike traditional databases, distributed ledgers have no central data store or administration functionality.

However, the number of individuals, as well as institutional entities mainly in developing countries such as India, Africa, and Australia, who are not familiar with bitcoin transactions and payments, is significant, and this is a hindrance to the global growth of the bitcoin payment market'.

As Cointelegraph reports, although the bear market has affected cryptocurrency payments, bitcoin remains the dominant payment despite the volatility, accounting for over 50% of all charges on the provider's BitPay platform.

According to the provider's data, BTC payment volume on BitPay peaked at 87% in 2021, then declined during the 2022 bear market.

This article is for informational purposes only and does not replace specialized consulting services with professional experts.

Billy Kasis, blog writer.

@videostudio2023