The global bitcoin payment system market is projected to reach $3.7 billion by 2031, up from $0.4 billion in 2018, at a compound annual growth rate (CAGR) of 33%, according to a report from Rising Media and research firm Frost & Sullivan.
The report includes an analysis of the key industry drivers, challenges, and trends influencing the growth of this sector as well as an overview of its key players who are making investments in blockchain technology.
According to the study, only 0.5% of traditional retailers currently accept cryptocurrencies as a payment method, and 74% of businesses are not familiar with paying salaries in cryptocurrency.
This is due to the fact that there is still little awareness among SMEs about how they can use cryptocurrencies as payment instruments or how they can benefit from them.
The report highlights that consumers may be aware of crypto payments, but lack the necessary knowledge to use them. This can be attributed to the fact that much research on consumer behavior has been done in developed economies, where there is greater access to digital payment methods and financial education. In contrast, emerging markets have less access to digital payment methods and financial literacy programs.
Bitcoin Payments Will Have A Positive Turnaround
As a result, many consumers do not understand how cryptocurrencies work nor do they have knowledge about how these technologies operate in their countries or regions. For example one of the key findings from this report was that most respondents were unaware of tax implications if they made purchases using cryptocurrencies such as bitcoin (BTC).
The majority of respondents also admitted that they did not know how to use cryptocurrencies once they had access to them: 71 percent said that their awareness levels about how cryptocurrency works were low or very low compared with those who were highly educated about the technology (59 percent).
All in all, it looks like there is a lot of potential for bitcoin payments to grow. However, there are still many challenges facing bitcoin payments and this market – not least regulation and taxation. Nevertheless, the study authors say that their findings suggest that global acceptance of cryptocurrencies will increase over time as merchants become more familiar with them and consumers become increasingly comfortable using digital coins as payment methods.