Bitcoin overtakes Paypal on value transferred, sets sights on Mastercard: Report

The Bitcoin ( $30,019.00 ) network already processes more volume by dollar value than Paypal and the largest decentralized cryptocurrency network in the world by market cap could outstrip Mastercard by as early as 2026.

A Nov. 25 report from market intelligence platform Blockdata titled When might the Bitcoin ( $30,019.00 ) network process volumes like Mastercard and Visa? points out that the Bitcoin ( $30,019.00 ) network processed about $489 billion per quarter in 2021, which is greater than Paypal’s $302 billion. After just 12 years in existence, Bitcoin ( $30,019.00 ) processes about 27% of Mastercard’s $1.8 trillion per quarter, and 15% of Visa’s $3.2 trillion.

Three factors could see the Bitcoin ( $30,019.00 ) network to rise to the level of the two credit card giants in terms of total volume processed: the total number of transactions, the average amount of Bitcoin ( $30,019.00 ) sent per transaction, and the rise of the price of Bitcoin ( $30,019.00 ) (BTC).

The first factor — total number of transactions — is the most variable-dependent. Theoretically, “if Bitcoin ( $30,019.00 ) were to increase its value transferred per transaction today by ~260%, it would be processing an equivalent volume to Mastercard on a daily basis.”

However, the report could not find current data indicating that the average amount of Bitcoin ( $30,019.00 ) sent per transaction is on an upswing. The trend could change in the future, but a rise in price to $245,000 at the current volume would also bring Bitcoin ( $30,019.00 ) to match Mastercard. This price action is potentially more likely than an uptick in volume, according to some analysts.

Blockdata ultimately claims that it is unlikely for Bitcoin ( $30,019.00 ) price to rise to the appropriate level to match Mastercard. If one considers the average yearly Bitcoin ( $30,019.00 ) price, it might take until 2060. On the other hand “taking the current growth rate in 2021 as a metric, it could happen as soon as 2026.”

Related: Bitcoin bulls have a lot to be thankful for despite BTC ‘probably’ not hitting $98K in 5 days

The report noted that although it is relatively young, the decentralized Bitcoin ( $30,019.00 ) network has managed to achieve high volumes compared to the two centralized credit card giants.

“It’s impressive how Bitcoin, as a 12-year-old decentralized network, is 27% of the way in terms of volume processed compared to Mastercard, a company founded in 1966.”


Recommended For You

About the Author: crypto8

Leave a Reply

Your email address will not be published. Required fields are marked *