Bitcoin Network Transactions Are Now Much Bigger Than PayPal
JAKARTA – The Bitcoin network has processed more volume by dollar value than Paypal and the world's largest decentralized cryptocurrency network by market cap could also surpass Mastercard by early 2026.
A November 25 report from market intelligence platform Blockdata entitled When will Bitcoin networks process volumes such as Mastercard and Visa?, showed that the Bitcoin network processed approximately US$489 billion (Rp7 quadrillion) per quarter in 2021, which is larger than Paypal's US$302 billion ( IDR 4.3 quadrillion).
After 12 years of existence, Bitcoin now processes approximately 27% of Mastercard's US$1.8 trillion per quarter, and 15% of Visa's US$3.2 trillion.
These three factors can make the Bitcoin network rise to the level of two credit card giants in terms of total volume processed: the total number of transactions, the average number of Bitcoins sent per transaction, and the increase in the price of Bitcoin (BTC).
The first factor — the total number of transactions — is the most dependent on the variable. Theoretically, “if Bitcoin were to increase its value transferred per transaction today by ~260%, it would process the equivalent volume of Mastercard every day.”
However, the report, which was also cited by Cointelegraph, could not find any recent data showing that the average number of Bitcoins sent per transaction is on the rise. Trends may change in the future, but a price increase to US$245,000 at current volumes will also see Bitcoin match Mastercard. This price action is potentially more likely than an increase in volume, according to some analysts.
Blockdata ultimately claims that it is impossible for Bitcoin prices to rise to appropriate levels to match Mastercard. If one considers the average annual Bitcoin price, it may take until 2060. On the other hand “taking the current growth rate in 2021 as a metric, it could be as soon as 2026.”
The report notes that despite being relatively young, the decentralized Bitcoin network has managed to achieve high volumes compared to the two centralized credit card giants.
“It is impressive how Bitcoin, as a 12 year old decentralized network, is 27% of the volume processed compared to Mastercard, a company founded in 1966.”