According to Blockdata, in the year 2021, Bitcoin was able to process more transactions than PayPal. What happens with Mastercard as well as Visa?
Block data is a firm that offers information on Blockchain for governments and businesses has stated that the Bitcoin network has already moved greater amounts of money than PayPal. It estimates that the volume of Bitcoin transactions will be greater than Mastercard or Visa within five years.
“Bitcoin has surpassed PayPal in terms of quarterly volume processed. We looked at the largest Blockchain out there to determine if it could process as much volume as familiar financial names like Mastercard or Visa. And if so, how and when?”
Particularly, the data released by Blockdata reveal how the Bitcoin system processed an annual average of $489 billion in the 2021’s quarter. The PayPal network handled $302 billion.
A common argument made by critics of Bitcoin is that many people view cryptocurrency to be an investment but do not use it to pay for transactions.
But, the most recent statistics indicate that Bitcoin as a payment option has seen a surge in recent years. It is increasing the use for investments.
“It is impressive how Bitcoin, being a 12-year-old decentralized network, is 27% of the way in terms of volume processed compared to Mastercard, a company founded in 1966.”
How long would it take to process large amounts such as Mastercard or Visa?
Can a Bitcoin network be transformed into an option that could be relied upon by billions of people across the globe? Could the Bitcoin network operate in the same volume as companies such as Mastercard or Visa can?
The latest research from Blockchain market intelligence firm Blockdata discovered that Bitcoin is processing the equivalent of 62% more transactions in dollar terms compared to PayPal for 2021. Yet, Mastercard and Visa remain top of the line in this measurement.
” The volume of money that Bitcoin moves will exceed Mastercard and Visa in 5 years “.
In fact, according to the Blockdata study, the Bitcoin network could match the dollar value of transactions on the Mastercard network as soon as 2026 or up to 2060.
” Taking the current growth rate in 2021 as a metric, it could happen as early as 2026. ”
Based on the Block data report, the average volume of the quarter in the world of Visa and Mastercard was an amount of 3.2 billion and $ 1.8 billion, respectively.
Three elements are required for three factors for Bitcoin blockchain to be considered as a level.
In reality, three things could help the Bitcoin system catch up to Mastercard or Visa. Regarding total volume processed:
The total amount of transactions. ” If Bitcoin was to grow the value of transactions it transfers in the present, + or minus 260 percent that would mean it was processing an amount equivalent to the volume of Mastercard daily. To keep up with Visa volume and the average value of transactions would increase by 540percent. ”
The amount of Bitcoin transferred per transaction. The report was unable to locate any data that indicates that the amount of Bitcoin transferred per transaction is rising.
The increase in the value in Bitcoin (BTC). In the alternative, if Bitcoin were to rise in value to $250,000, it could expect that the Bitcoin network could be processing an amount equivalent to that of the Mastercard network every day. To keep up with Visa volume, the Bitcoin network will require an increase of around $ 435,000.
” When can you hit those prices?” No one knows; certainly, we do not.
To conclude, I would like to say that the quarterly volume of Bitcoin is not as impressive. It is still far from competing with Mastercard as well as Visa. It’s interesting to note how the Bitcoin network has, after 12 years of existence, is now able to reach an average monthly volume of $489 billion.
I bid goodbye to you by quoting this quote taken from Arif the Naseem family ” Those who believe in Bitcoin also believe in intelligence .”