What is Bitcoin Loan Market Scope?
Since Bitcoin is not only a form of currency but also a store of value, like other assets, it can be used as collateral for a loan. In December 2020, Bitcoin market capitalization hit an all-time high, up over USD 100 billion compared to the summer months. Its market capitalization is currently more than USD 350 billion. Market capitalization is thereby calculated by multiplying the total number of bitcoins that are in circulation by the bitcoin price. Bitcoin's market capitalization has grown from roughly USD 1 billion in 2013 to several times that amount since it spiked in popularity in 2017. A Bitcoin loan is similar to a traditional loan offered by banks, except that it has tough credit checks, there are no terms tied to the money, and the interest rates are the same for everyone. This is because most of the risk lies not with the lender but with the borrower, as the borrower provides more than enough bitcoin to cover the loan and interest payments. Bitcoin loans are basically a great way to get cash very quickly. And there are many reasons why you might need this. You may want to pay off credit card debt at unreasonably high-interest rates or pay for an unexpected medical emergency. Whatever the reason, bitcoin loans spin faster than traditional loans and require less paperwork as your creditworthiness, good or bad, is not a factor.
The Bitcoin Loan market study is being classified by Type (Loan and Mortgage), by Application (Individual and Enterprise) and major geographies with country level break-up.
The companies are now exploring the market by adopting mergers & acquisitions, expansions, investments, new developments in existing products, and collaborations as their preferred strategies. The players are also exploring new geographies and industries through expansions and acquisitions so as to avail a competitive advantage through combined synergies. Analysts at AMA predicts that Players from European will contribute to the maximum growth of Global Bitcoin Loan market throughout the predicted period.
Gold Box (India), BlockFi (United States), Genesis Global Trading (United States), Unchained Capital (United States), Nexo (United Kingdom), CoinLoan (Estonia), OKEX.COM (Malta), YouHodler (Cyprus), Binance.com (Malta), HELIO LENDING PTY LTD (Australia), iFinex Inc. (Hong Kong), Bitcoin Suisse AG (Switzerland), Celsius (United Kingdom) and Salt Blockchain Inc. (United States) are some of the key players profiled in the study. Additionally, the Players which are also part of the research are Aave (United Kingdom), Yuanbao (China) and Dangpu (China).
Segmentation Analysis
Analyst at AMA have segmented the market study of Global Bitcoin Loan market by Type, Application and Region.
On the basis of geography, the market of Bitcoin Loan has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico).
Argentina: According to the national constitution of Argentina, the central bank is the only authority that is able to issue legal currencies. Strictly speaking, bitcoins are not a legal currency as they are not issued by the state monetary authority and are not legal tender. Hence, they can be considered money but not a legal currency as they are not a mandatory means of paying off debts or obligations. and Canada: Canada allows the use of cryptocurrencies, including Bitcoin. According to a website of the Financial Consumer Agency of Canada on digital currencies. Canada's tax laws and rules also apply to transactions in digital currencies, including those involving cryptocurrencies, and digital currencies are subject to the Income Tax Act. The Canada Revenue Agency (CRA) has characterized cryptocurrency as a commodity rather than a government-issued currency.
Influencing Market Trend
- Fluctuations in Monetary Regulations
- Growing Public Awareness about Bitcoin Loans
Market Drivers
- The Transparency of Distributed Ledger Technology
- High Remittances in Developing Countries
- High Cost of Cross-Border Remittance
Opportunities
- A Large Number of Bitcoin Mining Activities in Developing Regions
- Significant Growth Opportunities in Emerging and Developed Markets
- Growth in Venture Capital Investments
Restraints
- Uncertain Regulatory Status
Challenges
- Issues In Terms Of Standardization and Interoperability
Key Target Audience
Providers of Bitcoin Loan, End-Users, Potential Investors, Market Research Firms, Regulatory Bodies and Others
Customization available in this Study:
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