Bitcoin processes more value on a quarterly basis than payments giant PayPal, according to a new report by Blockdata.
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Will Bitcoin win?
The question is whether Bitcoin’s network has the potential to process trillions of dollar each quarter.
Blockdata notes that bitcoin’s blockchain has a strong track record when it comes to uptime – coming in at 99.987% over its 12-year lifespan. Comparatively, Litecoin‘s 10-year lifespan comes in at 100%.
Per the report, there are three tailwinds that could propel Bitcoin to overtake Visa and Mastercard in ‘value transfer’ terms.
Invariably, the first would be the number of transactions per second increasing. With second layer innovations like the Lightning Network, throughput capacity is on the rise. Taproot is also set to increase the network’s capacity.
An increase the the average value of Bitcoin in Dollar terms would also make a big difference. When the cryptocurrency achieves a six-figure price in the years ahead, then value transferred would technically increase with it.
According to Blockdata’s estimates – if BTC’s price rose to $245,000 – current activity would put value transferred on par with Mastercard. However, in order to match Visa, the cryptocurrency’s value would need to reach $435,000.
Will it happen this cycle, this decade or never?
Time will tell.
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