Author name: @nobumei (https://twitter.com/nobu_mei)
<aside> 💡 This page will explain the factors driving the $2 trillion market growth.
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In the previous section, we explained that the blockchain market has surpassed $2 trillion and that this market is growing five times faster than the Internet market. In this section, I will explain about BTC, which is driving the growth of this market.
If you only need to understand the market size and trends in the market growth rate as fact, you can skip this section.
Although the data is for the end of 2020, looking at the market share rate among the TOP 30 cryptocurrency market size, the No. 1 market share rate is BTC, with a 70% share at the beginning of the year and BTC accounting for 50% of the market, although its share gradually decreased toward the end of the year. In other words, BTC's impact on the overall market is significant, and the massive $2 trillion cryptocurrency market has grown in a way driven by BTC.
The current trend is that the share rate of BTC is gradually declining, and the funds that entered through Bitcoin as a gateway are now flowing to other blockchains such as Ethereum, which has the next highest share rate.
CoinGecko, Market Share of TOP 30 Stocks as of the end of 2020 ( 2020 CoinGecko Yearly Crypto Report )
As the Bitcoin Network grew and the size of the market increased, the number of people involved increased and other networks grew as well. Let's take a look at the Bitcoin protocol (mechanism) to find out why the Bitcoin Network has grown to this size.
The first premise is that a "protocol" is a set of common rules. It is because of common global protocols such as TCP/IP and WWW that people around the world are able to use the Internet. Here, we use the word "protocol" which means a universal and unchanging rule.
In addition, BTC and Bitcoin will be intentionally described separately in this document. In general, Bitcoin refers to the network or mechanism that forms Bitcoin, while BTC refers to Bitcoin as a currency.
Now, after a long explanation, let's talk about the Bitcoin protocol from here.
In 1.1, we explained that blockchain is a copy-protected technology. The copy-protection technology creates rarity in digital data, and digital data with high rarity is beginning to be recognized as an asset, of which BTC is a typical example.
The characteristics described in the figure were written into the program, and the copy protection technology created a universal and unchanging protocol. This is the fact, and we will see how the protocol is achieved.
Copy-prohibition technology did not come about by mutation. It is made up of a combination of several existing technologies. Typical examples are shown as below: