Bitcoin network overtakes Paypal in transaction volumes

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The bitcoin network is said to have exceeded the transaction volumes of the PayPal payment platform. At an average of $ 489 billion, the bitcoin network processed $ 187 billion more than PayPal per quarter this year, dailyhodl.com reported citing data from blockchain intelligence firm Blockdata. PayPal processed on average about $ 302 billion per quarter.

However, Bitcoin’s current transaction volume per quarter is still only a fraction of the value processed by the Mastercard and Visa credit card companies, Blockdata noted.

Mastercard processed an average of $ 1.8 trillion per quarter this year, 260% more than PayPal.

“It’s impressive to see how bitcoin, as a 12-year-old decentralized network, is 27% of the way in terms of a metric (volume processed) compared to Mastercard, a company founded in 1966, especially if you take into account that it’s a decentralized movement, ”Blockdata said in the report.

The block data report argues that the bitcoin network is beating Mastercard on the basis of three factors: the increase in the number of transactions, the average amount of bitcoin sent per transaction, and the surge in the price of bitcoin.

The bitcoin network should grow at 260% to process a daily volume equivalent to the Mastercard network, and at 540% for Visa. However, there is no indication that the amount of bitcoin set per transaction is increasing, he said.

Alternatively, if the price of bitcoin increased 260%, then the bitcoin network could reach the volume of Mastercard, he noted. As the rise in the price of bitcoin has been historically unpredictable, it is difficult to say if it will reach this point.

According to the report, at the current growth rate, bitcoin could reach Mastercard volume anywhere between 2026 and 2060, taking into account that Mastercard would also process more transactions than today.

(Edited by: Thomas Abraham)

First published: 03 Dec. 2021, 06:56 PMIST

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