Bitcoin Network Overtakes PayPal and Soon May Compete With Mastercard – Blockdata
According to an analysis by Blockdata, in 2021, the Bitcoin network processed an average of $489 billion per quarter, which is more than the PayPal payment network processing. By 2026, the Bitcoin network will be able to match the volume of Mastercard.
Blockdata analysts conducted a study titled “When will the Bitcoin network be able to handle volumes like Mastercard and Visa?” period. According to their calculations, in just 12 years of existence, the Bitcoin network processes about 27% of Mastercard volumes per quarter ($1.8 trillion) and only 15% of Visa volumes ($3.2 trillion).
Three factors can influence the growth of the Bitcoin network to the level of these two financial giants in terms of the total processed volume: the volume of transactions, the average amount of Bitcoins sent per transaction, and the rise in the price of Bitcoin (BTC).
The volume of transactions – most of all, depends on many variables. In theory, with a 260% increase in dollar supply per transaction, the Bitcoin network could match the daily turnover of Mastercard.
A rise in price to $245,000 at current volume will also result in Bitcoin matching the Mastercard. According to some analysts, such a scenario is potentially more likely than an increase in volume.
According to Blockdata, the price of Bitcoin is unlikely to rise to the level of the Mastercard. If we take into account the average annual change in the price of Bitcoins, this process could last until 2060. On the other hand, “if we take the growth rate in 2021 as an indicator, then this may happen as early as 2026”.