Increased mainstream support of the global cryptocurrency market is set to skyrocket its value to $6.7bn by 2025, according to a report by Transparency Market Research.
The global cryptocurrency market was valued at $574m as of 2017, however it is expected to achieve a compound annual growth rate (CAGR) of 31.4% between 2017 and 2025.
Much of this growth will be driven by the ability of cryptocurrencies to speed up transactions, however questions around the credibility of some parts of the industry may hamper some growth, according to Transparency Market Research.
Upheaval ahead for global cryptocurrency market
While the industry is expected to see significant growth over the next few years, it will also see dramatic upheaval as the market consolidates and matures.
This is, according to Transparency Market Research, likely to lead a reduction in the number of companies present within the industry, with mergers reducing the number of active companies.
There is also likely to be an increased presence from the traditional finance industry within the global cryptocurrency market. We are already seeing this begin with the launch of the JPM Coin from JP Morgan, an internal cryptocurrency the company plans to use to speed up transactions, and the establishment of the Gibraltar Blockchain Exchange, the first fully regulated blockchain exchange owned by a stock exchange.
However, while mainstream players are increasingly getting involved in cryptocurrency, there are still issues around its credibility.
A lack of strict regulation in some markets has led to issues surrounding the management and behaviour of some cryptocurrency companies. A notable recent example of this is the cryptocurrency exchange QuadrigaCX, which collapsed following the apparent death of its founder and the reported – although disputed – loss of access to its cold storage wallet. This has resulted in the loss of cryptocurrency totalling $137m, prompting fury among the 115,000 users owed funds.
If cryptocurrency is to continue its impressive growth, the industry will need to successfully eliminate these kinds of scandals, enabling investors to operate with the same level of confidence as they do in traditional financial industries.