Using the BTC’s 2021 price growth as a metric, Blockdata could see Bitcoin reaching Mastercard’s transaction volume in about five years.
BITCOIN VOLUME SOARS PAST PAYPAL?
According to the latest data, bitcoin now handles more volume than online payments giant PayPal. According to blockchain insight firm Blockdata, the bitcoin network processed an estimated average of $489 billion per quarter in 2021, compared with PayPal’s average of $302 billion.
More volumes are being transacted on the Bitcoin (BTC) network than on the payments platform PayPal, according to blockchain intelligence company Blockdata.
COULD BITCOINS VOLUME OVERTAKE MASTERCARDS NEXT?
During this year’s quarters, the Bitcoin network transacted $187 billion more than PayPal on average. Bitcoin’s current transaction volume per quarter is $489 billion. Currently, Mastercard and Visa process a fraction of the total value of credit card transactions.
“If we look at the data, the Bitcoin network processed an estimated average of $489 billion per quarter in 2021.
To put that into perspective, PayPal processed an average of $302 billin per quarter in 2021, the Mastercard network processed $1.8 trillion per quarter or 260% more, and the Visa network processed an average of $3.2 trillion per quarter or 540% more.”
According to Blockdata, the growth of Bitcoin’s transaction volumes is “impressive” given that it is young relative to Mastercard.
“It’s impressive how Bitcoin, as a 12-year-old decentralized network, is 27% of the way in terms of one metric (volume processed) compared to Mastercard, a company founded in 1966, especially when you take into account that this is a decentralized movement.”
If the price of Bitcoin were used as a growth indicator, it would take Bitcoin about four decades to reach Mastercard’s transaction volume.
“Taking the average yearly Bitcoin price as a growth metric, it could take as long as 2060 for this to happen. However, if you account for the negative correlation with the average BTC per transaction decreasing, this timeframe could increase significantly.”
“Taking the current growth rate in 2021 as a metric, it could happen as soon as 2026.”
Featured Image: Shutterstock/Tithi Luadthong
