• bitcoinBitcoin$70,708.002.71%
  • ethereumEthereum$3,561.371.59%
  • elrond-erd-2MultiversX$61.200.85%

Bitcoin Surpasses PayPal on Value Transferred

The Bitcoin network is now processing more volume by dollar value than PayPal and it could manage to surpass Mastercard as well as early as 2026 if things continue like this.

According to a report from Blockdata, a market intelligence platform, that was published yesterday under the name “When might the Bitcoin network process volumes like Mastercard and Visa?” it seems that the Bitcoin network managed to process around $489 billion per quarter this year, while PayPal only managed to record $302 billion.

With only 12 years since it was first created, Bitcoin is already processing around 27% of Mastercard’s $1.8 trillion per quarter, and 15% out of the $3.2 trillion processed by Visa.

Three things may help the Bitcoin network grow to the same level as the two credit card titans in terms of total volume processed: the total number of transactions, the average amount of BTC sent per transactions, and the increase of the price of BTC.

Total number of transactions represents the most variable-dependent factor. In theory, “if Bitcoin were to increase its value transferred per transaction today by ~260%, it would be processing an equivalent volume to Mastercard on a daily basis.”

But according to the report, there is no data to suggest that the average amount of Bitcoin that is being sent per transaction is increasing. Of course, this could change over the course of time. An increase in price to $245,000 at the current volume would mean that Bitcoin would equal Mastercard. According to specialists, it is more likely that we would experience a price action, compared to an increase in volume.

Still, Blockdata suggests that it is not very likely for the price of Bitcoin to grow to the needed levels in order to equal Mastercard. If we look at the average yearly price of Bitcoin, that would take until 2060 to happen. But, if we are “taking the current growth rate in 2021 as a metric, it could happen as soon as 2026.”

The report also highlighted how impressive is it that such a young network has reached such high volumes:

“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.”

Previous articleNext article

Leave a Reply

Your email address will not be published.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