- Bitcoin must double its dollar processing volume to match Mastercard.
- Mastercard and Visa, process $1.8 trillion and $3.2 trillion annually.
According to Blockdata, the Bitcoin network handled 62% more value in dollars than PayPal this year. Also, the organization assessed Mastercard and Visa network volume. Although Bitcoin presently trails behind credit card companies, the paper investigated ways for it to catch up.
This year, Bitcoin has transacted an estimated $489 billion every quarter, compared to $302 billion for PayPal. The top two processors, Mastercard and Visa, still process $1.8 trillion and $3.2 trillion annually.
A Long Way to Go
Bitcoin must double its dollar processing volume to match Mastercard and 540 percent to match Visa. Although these are considerable gains, increased knowledge and use of BTC, together with continuing ecosystem changes, may lead to future increases in dollar value processed. Several transactions, average bitcoin transferred per transaction, and price increase might see the Bitcoin network surpass the two credit card giants in overall volume handled.
The report said:
“All of the publicly available statistics, such as the number of nodes in the Lightning Network, the number of channels between these nodes and the amount of bitcoin in these channels, are growing at an exponential rate.”
The study couldn’t identify any recent data showing an increase in the average amount of Bitcoin transferred each transaction. The trend may change, but a price of $245,000 at present volume would put Bitcoin on par with Mastercard. Some experts believe this price movement is more plausible than an increase in volume.
Blockdata concludes that Bitcoin’s price will not climb to meet Mastercard’s. Using the average annual Bitcoin price, it may take till 2060. Using the present growth rate in 2021, it might happen as early as 2026.