The Bitcoin network already trades more volume in dollar value than Paypal and the world’s largest decentralized cryptocurrency network by market capitalization could overtake Mastercard by 2026.
A November 25 report from the market intelligence platform Blockdata titled When can the Bitcoin network process volumes like Mastercard and Visa? points out that the Bitcoin network processed around $ 489 billion per quarter in 2021, which is more than Paypal’s $ 302 billion. After just 12 years of existence, Bitcoin processes around 27% of Mastercard’s $ 1.8 trillion per quarter and 15% of Visa’s $ 3.2 trillion.
Three factors could see the Bitcoin network 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 sent per transaction, and the rise in the price of Bitcoin (BTC). .
The first factor – the total number of transactions – is the most dependent on the variables. Theoretically, “if Bitcoin increased its value transferred per transaction today by around 260%, it would process a volume equivalent to that of Mastercard on a daily basis.”
However, the report could not find any current data indicating that the average amount of Bitcoin sent per transaction is on the rise. The trend may change in the future, but increasing the price to $ 245,000 at current volume would also cause Bitcoin to match Mastercard. This price action is potentially more likely than an increase in volume, some analysts say.
Blockdata ultimately claims that the price of Bitcoin is unlikely to reach the appropriate level to match that of Mastercard. If you consider the average annual price of Bitcoin, it could take until 2060. On the other hand, “taking the current growth rate in 2021 as a measure, it could happen as early as 2026”.
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The report notes that although it is relatively young, the decentralized Bitcoin network has managed to achieve high volumes compared to the two centralized credit card giants.
“It’s impressive to see how Bitcoin, as a 12-year decentralized network, is 27% of the way in terms of volume processed compared to Mastercard, a company founded in 1966.”