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The US cryptocurrency market is expected to reach $32.9 billion by 2028
Just over fifteen years after their introduction into the financial world, cryptocurrencies have now become mainstream. With Bitcoin leading the pack, the cryptocurrency market is growing in several developed countries, including the United States.
According to data recorded in 2023, 17% of US consumer savings are in cryptocurrencies. It is the second favorite savings method in the United States. This shows how invested the American population is in the multi-billion dollar industry. For this reason, financial experts have shown a keen interest in the market, examining its projections for the years to come. Currently, they have predicted unprecedented growth in the next four years, which is good news for cryptocurrency users.
Current data shows that the US cryptocurrency market will be valued at $32.9 billion by 2028. This would be an annual growth of 9.10% over the next four years. But that’s not all, since user penetration at the level best crypto casino sites it is expected to reach 29.12% as more and more users are starting to see the benefits of using these sites over standard online casinos.
In this guide we will provide clarity on these figures. We will examine the factors driving this growth, the potential obstacles, and the impact it has on the US cryptocurrency industry and the country’s economy.
History of the cryptocurrency market in the United States
Before taking a look at the future of the market, it will be good to learn from its past. And we all agree that history is the best teacher.
The history of cryptocurrency in the United States dates back to the emergence of Bitcoin in 2009. During its early years, the market experienced significant volatility, which caused excitement and caution among traders and investors alike. Many would agree that this is the case today, as price fluctuations still occur.
Looking back, the focal point is the government’s active involvement in the development and regulation of cryptocurrencies. One example is the 2014 Internal Revenue Service (IRS) ruling that Bitcoin is taxed as property. Another example is the 2022 framework that gives regulatory power to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The SEC is already regulating the industry, as evidenced by its extensive list of filings against crypto-centric companies and projects. However, the ongoing battle between regulators and the cryptocurrency industry shows that the United States continues to develop, regardless of the structures implemented.
The current state of the cryptocurrency market and the factors driving expected growth
Enter the global cryptocurrency market it is expected to reach $51.5 billion this year. The United States will be a major player, contributing more than 50% of this growth. This is great news as 2024 is an eventful year for the market, with the recent BTC halving and an expected bull run.
If you are a cryptocurrency enthusiast, you know that the bull run won’t last forever. Why, then, do experts predict the market will surpass $30 billion in the next four years? Well, there are other things that contribute to the growth rate. These include institutional adoption, retail investment growth, technological advancements, and more.
Let’s take a deeper look at these factors so you can gain a better understanding.
Increase acceptance and adoption
The cryptocurrency industry has only been around for fifteen years. It has grown significantly during this time but has yet to reach its full potential. With the cryptocurrency market growing every day and more people becoming interested in digital assets, we can anticipate an increase in adoption.
The cryptocurrency market overview reveals that individuals and businesses will turn to cryptocurrencies in the coming years as they are safe and efficient. It will also be used as a hedge against inflation. For US businesses reaching new horizons, cryptocurrencies would be advantageous due to lower transaction fees.
Technological advances
Technology is critical in advancing the cryptocurrency market. As blockchain technologies become more innovative, the scalability and speed of crypto transactions improve. This will be reflected in the revenue growth of the market. Additionally, cryptocurrencies would be integrated into more industries, such as real estate and digital content creation.
Areas where technological advancement is expected include DeFi (decentralized finance) and NFTs (non-fungible tokens). Their use cases would primarily involve smart contracts, decentralized apps (DApps), and asset tokenization. These aspects of blockchain technology will open up new avenues of investment and application, attracting a new generation of investors.
Regional factors and regulatory developments
In the United States, the cryptocurrency market is influenced by a variety of regional factors and regulatory developments. While the country has major players in the industry, regulatory clarity remains a challenge. The Securities and Exchange Commission (SEC) has attempted to crack down on several crypto initiatives, which has created uncertainty for investors and businesses.
The SEC has not been fruitful in its efforts and is expected to compromise its regulations. This compromise may not be good for the industry, but it would see more Bitcoin Exchanges enter the US market, bringing healthy competition and maturity to the sector. This, in turn, would increase the number of investors and lead to more revenue.
Potential challenges and risks
Despite the optimistic outlook from industry experts, the journey to $32.9 billion is full of obstacles. The cryptocurrency market is full of ups and downs, and since we’ve looked at the ups, we need to look at the potential downs as well. Briefly, let’s look at the potential risks.
Regulatory uncertainty
The main issue in the United States must be the regulatory framework. The SEC is currently engaged in a tug of war with crypto-centric companies and projects over their crypto products and services. If this becomes a theme in the country, it could potentially discourage investors and slow market growth.
Market volatility
Market volatility is another major risk. Cryptocurrencies are known for their dramatic price fluctuations. While this volatility can lead to high returns, it can also lead to substantial losses. This inherent riskiness makes cryptocurrencies an unstable investment. If the recession is significant, it could hinder market growth.
Final considerations: future prospects and impact on the economy
Looking beyond 2024, the future of the US cryptocurrency market appears promising but uncertain. Potential trends include the mainstream adoption of cryptocurrencies, the development of crypto regulations, and the integration of blockchain technology into various industries.
From an economic perspective, this could lead to job creation and new investment opportunities. On a societal level, cryptocurrencies could democratize finance by providing access to financial services to those who currently lack banking services.
The projection of the US cryptocurrency market reaching $32.9 billion by 2028 is based on current trends and factors. While challenges exist, the potential benefits to the economy and society make this a development worth keeping an eye on.