Bitcoin Now Treats More Dollar Value Than PayPal
- Bitcoin’s network has overtaken PayPal in terms of the dollar value it processes and could soon equal that of Mastercard.
- It currently processes 27% of the value of Mastercard.
Barely 12 years after its existence, the Bitcoin network is already processing more dollar value today than PayPal, a 23-year-old company. American digital payment company. As impressive as it is, experts believe the network could even overtake credit card giant Mastercard in number of dollar transactions processed, from 2026.
In a recent report by the market intelligence platform for blockchain and other distributed ledger technologies, Blockdata, it was stated that the Bitcoin network processed approximately US $ 489 billion per quarter in 2021. , which is more than Paypal’s US $ 302 billion.
Entitled “When can the Bitcoin network process volumes like Mastercard and Visa?” The report states that after only 12 years of existence, Bitcoin processes about 27% of Mastercard’s US $ 1.8 trillion per quarter and 15% of Visa’s US $ 3.2 trillion. “If Bitcoin increased its value transferred per transaction today by 260%, it would process a volume equivalent to that of Mastercard on a daily basis,” he added.
Among the three factors that could see the Bitcoin network rise to the level of the two credit card giants in terms of total volume processed according to Blockdata is; the total number of transactions, the average amount of Bitcoin sent per transaction and the increase in the price of Bitcoin.
The report, however, could not find any current data indicating that the average amount of Bitcoin sent per transaction is on the rise. While it is inevitable that the trend may change in the future, increasing the price to US $ 245,000 at current volume would also cause Bitcoin to match Mastercard by 2026, Blockdata said.
Notwithstanding the annual average price of Bitcoin, which, if factored in, could take up to 2060 before the network is able to match that of Mastercard. Nonetheless, the report concluded that Bitcoin had performed admirably well for a network that started just over a decade ago.
Compared to others cryptocurrency in the market however, Bitcoin has shown a steady increase in value over the years. At this point, many experts believe that Bitcoin is on the verge of breaking the US $ 100,000 mark, with no certainty as to when this might actually happen, given its volatile nature.
Overall, there is a growing number of companies in a multitude of industries that embrace cryptocurrencies, allowing customers to use them as an official payment method for goods and services. Visa, Mastercard and PayPal is one of them.