Bitcoin overtakes Paypal on value transferred, sets sights on Mastercard: Report

Already, the Bitcoin network processes more volume per dollar than Paypal. Mastercard could be outsold by the largest decentralized cryptocurrency network by market capital in 2026.

Blockdata published a Nov. 25 report titled “When might the Bitcoin network process volumes such as Mastercard and Visa?” The Bitcoin network is expected to process $489 billion in quarter 2021. This is more than Paypal’s $302 million. Bitcoin has been around 12 years old and processes approximately 27% of Mastercard’s $1.8 trillion and 15% of Visa’s $3.2 trillion each quarter.

The three factors that could lead to Bitcoin’s rise to the level of two major credit card companies in terms of total volume processed are the total number and average amount of Bitcoin transferred per transaction, as well as the rising price of Bitcoin (BTC).

The most variable-dependent factor is the first, which is the total number of transactions. Theoretically, if Bitcoin had a value per transaction increase of 260% today, it would process an equivalent volume to Mastercard daily.

The report did not have any data to show that Bitcoin transactions are on the rise. This trend could change, but an increase in Bitcoin’s price to $245,000 at current volume would bring Bitcoin to equal Mastercard. Analysts believe that this price action could be more likely than an increase in volume.

Blockdata claims that the Bitcoin price is unlikely to rise enough to match Mastercard. It could take up to 2060, if one takes into account the average Bitcoin price per year. It could be as early as 2026 if we take the current growth rate for Bitcoin in 2021.

Related: Bitcoin bulls have much to be thankful for, despite BTC not reaching $98K in five days

It was noted that the Bitcoin network, although still relatively young, has been able to reach high volumes relative to the two centralized credit cards giants.

It’s amazing how Bitcoin, a decentralized network that has been around for 12 years, is 27% ahead of Mastercard (a company that was founded in 1966).

https://cointelegraph.com/news/bitcoin-overtakes-paypal-on-value-transferred-sets-sights-on-mastercard-report