A new study has revealed that the Bitcoin network now processed more transactions by volume than PayPal, the payments giant.
What the Data Says
According to a report by Blockdata, BTC handled around $489 billion per quarter in 2021. In comparison, PayPal processed $302 billion worth of transactions per quarter in the same period. That means the BTC Network handled around $187 billion more in volume per quarter than the payments giant. It is even though BTC was started nearly 12 years after PayPal.
However, BTC is still far behind global payments giants Visa and Mastercard. In the same period, Mastercard processed $1.8trillion worth of transactions per quarter while Visa processed around $3.2 trillion per quarter.
Despite paling in comparison to Visa and Mastercard, the achievements of the Bitcoin Network are still impressive. For instance, while BTC is only around 12 years old, it has been able to achieve around 27% of the volume achieved by Mastercard, which has been around since 1966. It is even more impressive when you consider that there is no central body coordinating the activities of users. Everything is managed by the community.
If the average annual BTC price was used as a growth factor, the report states that BTC could surpass Mastercard in volumes in 40 years. That means the soonest that could happen is in 2060. However, when looking at the price growth of BTC in 2021, that could happen as soon as 2026. Another point worth noting is that only around 2%-5% of the world has ever used BTC. In comparison, billions of people around the world use the services of mainstream payments options.
Another important point to note is that cellphone usage is growing around the world. As more unbanked people who are also tech-savvy learn about BTC, it is likely they will want to use it. It is especially useful in poor nations where the cost of sending funds can at times cost as much as 10% of the total transaction.
BTC is a Viable Alternative
The massive growth of BTC is proof that people around the world are in real need of a reliable payment option. It is worth noting that BTC was launched in 2009, which was just a year after the 2008 housing market crash. At the time, a lot of people lost their savings built up over a lifetime in the banks.
Satoshi’s goal was to give people financial freedom while giving them control over monetary policy. This has proven especially useful for people living in nations with poor governance. In those nations, monetary policy changes can render one’s savings worthless overnight.
BTC is thus emerging as a viable option not just to send funds but also as a way to preserve wealth. It ensures that even in cases where the currency could be rendered worthless overnight, one’s wealth can still be preserved. However, there is still a lot that needs to be done in terms of educating the masses.