The increased demand for crypto transactions boosts the growth of the global BTC payments market, which could rise by nearly 350% over the next nine years.
According to a study by Allied Market Research, the global BTC payments market could grow at an average of 16.3% per year and reach $3.8 trillion by 2031. As of 2021, its volume amounted to $850.6 billion.
The study suggests that the main drivers of market growth will be an increased demand for:
- online payments;
- data security;
- efficiency of payment systems;
- transparency of transactions.
Allied Market Research analysts note an increased demand for BTC payments from banks and other financial institutions. However, the global adoption of crypto payments is hampered by a low level of awareness among users of traditional financial systems about the capabilities of BTC and distributed ledger technology (DLT).
The study also showed that different segments of the BTC payments market will develop unevenly. For example, the private keys segment accounts for about 75% of the total market and, according to analysts, will retain its dominant position. At the same time, the public keys segment has the potential for annual growth of 20.3% in the period from 2022 to 2031. In contrast, the compound annual growth rate (CAGR) of the hardware segment will be 19.8% and that of the e-commerce segment will be 20.2%.
Bitcoin as a means of payment is used the most in the Asia-Pacific region, accounting for about 40% of all global BTC payments. Experts say that the region’s leadership in this area will continue until 2031. Moreover, analysts forecast the highest growth rate in North America — 18.6% per year.
Recall that Bitcoin’s investment attractiveness is growing in Q4 2022, despite bearish trends in the crypto market.
