Global Blockchain and Cryptocurrency Market 2021
Especially with the onset of the COVID-19 pandemic and the decreasing amount of paper-based money in circulation, Blockchain is gaining momentum. Private sector companies change their business models to incorporate cryptocurrencies, banks introduce new crypto-offerings, governments become more and more open to the technology, and consumers increasingly invest in cryptocurrencies. With that, the blockchain-based technologies are expected to represent a significant share of the global GDP by 2030, elevating it by close to USD 1.76 trillion by 2030, according to PwC in October 2020. As it has recently, much of this future growth is expected to come from provenance, payments, and digital identity, but by 2030 the magnitudes are forecasted to be remarkably higher.
Moreover, the share of enterprises that included blockchain technologies production increased by 16 percentage points in March 2020, compared to the same period a year before. Furthermore, on average eight in ten enterprise representatives agree that in the next five to ten years, digital assets will become a strong alternative to fiat currencies, despite some risks stemming from cryptocurrency volatility. Additionally, banks are keeping an eye on the blockchain technology. The year 2020 saw quite several major banks stepping into the market. Moreover, central banks of Europe, China, Sweden, and others are experimenting with blockchain technologies, despite some lingering concerns.
In many countries worldwide, businesses have increased their trust in cryptocurrencies, so that globally, the share of enterprises that included blockchain technologies in production increased by 16 percentage points in March 2020, compared to the same period a year before, as stated by Deloitte in June 2020. Major online payment players are keeping their eye for such movement and are making further steps toward Blockchain technology. At the beginning of 2018, Square became the first public company from the United States that allowed its users to buy, sell and withdraw Bitcoin via Cash App. During the full year 2020, Square’s Cash App underwent a significant increase in Bitcoin revenue year-on-year. In this year, the revenue generated by Bitcoin stood at USD 4.57 billion, up about 900% compared to 2019. Nevertheless, the profits from this segment were not as profound, as stated by Square in February 2021. Moreover, in February 2021, Square purchased about 3,318 Bitcoins for USD 170 million. This added to the company’s October 2020 purchase of 4,709 Bitcoins, so that currently Bitcoin represents close to 5% of the Square total assets, according to CNBC in February 2021.
In October 2020, PayPal also confirmed enlarging cryptocurrency capabilities by the end of 2020, and a payment with cryptocurrency at checkout option by H1 2021, as stated by The Block in February 2021. Additionally, in November 2020, Paypal’s cryptocurrency partner Paxos received USD 240 million funding from Declaration Partners, PayPal Ventures and Paxos’ previous investors RRE Ventures and Liberty City Ventures, which made the firm one of the highest funded firms in the crypto arena, according to Forbes in February 2021.
In Mexico (42%) and Colombia (44%), reading about cryptocurrencies and understand it better would motivate people the most to adopt it, as of December 2020.