In a report published by RnRMarketResearch, the analysts forecast global digital coin market to grow at a CAGR of 7.33% during the period 2016-2020.
A noteworthy trend in the digital coin market is the huge capital investments in digital coin start-ups. A large number of venture capital firms supported digital coin start-ups, especially in countries like France and Switzerland, in 2015. Many venture capital firms invested seed capital in digital coin firms during their start-up stage. The total funding by venture capital stood at an estimated $670 billion. The market remained stable in the third quarter of 2015, though a decline in capital investments followed compared to the first two-quarters of the same year.
Key growth driver of digital coin market is the low transaction costs associated with digital currency. The United Nations recognizes digital currency as a legal tender that runs day and night in 45 national currencies. Technology companies, including Alpha Point, are supporting digital currency exchanges. This is helping many financial institutions access order routing to the digital currency market. The top vendors are trying to leverage the digital currencies to ease the streamlining of international transfer. This will also help investors in the foreign exchange market to participate actively without incurring huge transaction costs.
Key players in the global digital coin market: Bitcoin, Ethereum, Ripple, Litecoin, and Dogecoin.
Other prominent vendors in the market are: Dash, Factom, MaidSafeCoin, Peercoin, Novacoin, and Namecoin.
A digital coin is a form of electronic currency that uses cryptography to check the veracity of users that attempt to spend the currencies. Such currencies can be used to ensure the stability of national economies, corporations, and individual users. The cryptocurrency can be converted to any real currency, including dollars, euro, yuan, and rubble. Online transaction using digital coins is one of the fastest ways of sending or receiving money as the transaction is not subject to any government intervention, chargebacks, or central bank regulations.
Further, the report states that one challenge that could hamper digital coin market growth is regulatory issues. Government bodies are very likely to propose rules to regulate digital currency exchanges and wallet providers.
To read a detailed report on digital coin market , visit here.