Thursday, 16 Dec, 2021
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For different reasons, many individuals around the world now rely on the Bitcoin network, which, unlike other huge financial networks, is not operated by a single corporation from a few locations. Individual nodes, operated by people and businesses all over the world who want to confirm their own transactions and strengthen the network, keep the network running.
Is it possible for such a network to become a service relied on by billions of people all over the world? Can the Bitcoin network handle the same volume of transactions as a corporation like Mastercard or Visa?
What is Bitcoin transaction ?
The thing that accepts bitcoin as the latest payment method, has gained positive signs for years. According to Blackdata's findings, the digital currency network outperformed several formidable competitors such as PayPal to claim the top payment platform, with a total number of bitcoin transactions exceeding 62 percent.
Despite the fact that it is a significant turning point in Bitcoin's journey, the most challenging thing for this player is to achieve the standing points of other competitors such as Visa and Mastercards, in this payment industry. In 2021, based on Blockdata's collected data, the Bitcoin network processed about $489 billion per quarter. On the other hand, Bitcoin vs Paypal, Paypal had a smaller market capitalization of $302 billion, while MasterCard and Visa held a large advantage, with $1.8 trillion and $3.2 trillion in quarterly transactions respectively.
The Bitcoin transactions comparison.
The chart shows that Bitcoin transactions in particular still haven't achieved any remarkable record to beat against the level of established payment providers. However, Blockdata also states that it is not impossible with this “King Coin”.
The average number of bitcoin transactions sent in each one is one of the elements that should be considered. Even still, to handle the same volume as the daily Mastercard network and 540 percent for Visa, the coin's network will need to increase by 260 percent. However, rather than boosting the amount of BTC transferred in each transaction, the paper states that BTC's enormous price growth over the previous year will aid the coin in closing the gap with MasterCard and Visa.
Number of bitcoin transactions comparison vs other (2021).
This difference comes from Bitcoin transaction's scaling issues, which Layer 2 solutions seek to address. Off-chain transactions, such as the Lightning Network, have exploded in popularity just a few months after their launch.
Despite the fact that activity on this layer is impossible to measure, an estimated 663 thousand Bitcoin transactions were made in September 2021. According to the publication, if the protocol's user base grows to 1 million people, or around 1% of Bitcoin's, it will be able to perform twice the daily Bitcoin transaction volume.
Cryptocurrencies and the most widely used fiat currencies continue to coexist. As consumers find it simpler to access USD via public blockchains, we may witness a consolidation of smaller national currencies.
Based on Finnix A ’s report, the fall, which occurred less than a week after Bitcoin reached a record high of over $69,000, wiped billions from the crypto market. However, many analysts remain optimistic about cryptocurrency's long-term prospects.
Despite current efforts to promote BTC as the best store of wealth rather than an infinitely divisible digital equivalent for US$, Blockdata found that the BTC network might someday evolve into a competitor for the giant credit card processors.
Future payment trend: Cryptocurrency.
Bitcoin Can Beat Visa, MasterCard to Top World Payment System in 10 Years
According to a new analysis released on April 2 by software firm DataLight , Bitcoin (BTC) will overtake current global payment systems within a decade.
The organization predicted that if Bitcoin's current rate of network expansion continues, it will triumph out of competition from market incumbents in a paper comparing transactions on the Bitcoin network to those using Visa, MasterCard, and PayPal.
According to the report, there are around 25 million Bitcoin wallets in circulation, while the number of Visa and MasterCard credit and debit cards in circulation has reached 5.3 billion. These are, nevertheless, indications of a work in progress. According to the paper, advancements will make Bitcoin an appealing offer for mass consumers in the near future, removing it from its technical specialist environment.
While Bitcoin can now only process about seven transactions per second compared to Visa's 65,000, scaling solutions.
Future prediction: in the next 10 years.
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