A report from Sandler Research projects growth in the digital currency market will be 7.33% CAGR driven by significant capital investments to 2020
The report indicates that key driver of growth is the low transaction costs associated with digital currency.
Technology companies, including Alpha Point, are 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.
The following currencies are cited by the report as key players in the global digital coin market: Bitcoin, Ethereum, Ripple, Litecoin, and Dogecoin. Other prominent vendors in the market identified include Dash, Factom, MaidSafeCoin, Peercoin, Novacoin, and Namecoin.
“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.”
Further, the report states that one challenge that could hamper market growth is regulatory issues, and notes that government bodies are very likely to propose rules to regulate digital currency exchanges and wallet providers.