Bitcoin Transaction Value Outperforms PayPal and Recovers Against VISA

Bitcoin Transaction Value Outperforms PayPal

For many, Bitcoin’s success is defined by its transaction throughput or scaling. Bitcoin’s biggest criticism right now is that you can only make a few transactions per second, while Visa and PayPal can provide tens of thousands.

Bitcoin – more transactions than VISA and PayPal?

According to Yassine Elmandjra, a cryptocurrency analyst at ARK Invest, a New York-based investment firm,

“the dollar value of all Bitcoin transactions has overtaken PayPal’s online payment processor”.

Bitcoin’s base layer transaction volume doesn’t compare to Visa’s, MC’s et al. But it was never supposed to.

While Visa handled $ 8.9 trillion in 2016, Bitcoin still seems to have a long way to go before dethroning the US-based payment giant in terms of transaction value. Since 2015, the most popular cryptocurrency by market capitalization has had a seemingly relentless growth rate, with an eight-fold increase in transaction value in 2017.

If it continues its increase of 80.17 percent per year from 2013 to 2018, Bitcoin will overtake Visa in 2022 and theoretically handle over $ 13 trillion in payment volume.

Value vs. Throughput: Bitcoin’s Existential Crisis

Contrary to the sophisticated, market-specific payment protocols of recent years, Satoshi Nakamoto’s development of Bitcoin seems to have triggered an age-old debate about the purpose of the cryptocurrency.

While many believe that BTC should at least scale up to Visa’s transaction throughput, others claim that Bitcoin was created only for high-value transactions. The latter camp does not care about the long confirmation times and high transaction fees. Elmandjra claims that Bitcoin “should never achieve such throughput”.

Bitcoin’s base layer transaction volume doesn’t compare to Visa’s, MC’s et al. But it was never supposed to.

One user in Elmandjra’s thread emphasized that most of the Bitcoin transactions stem from “speculative trading” and are a comparison to Visa, as compared to apples to oranges.

But at least the price is not discussed but bitcoin technology or infrastructure. Scalability solutions such as the Bitcoin Lightning Network and SegWit, as well as external solutions are currently in the starting blocks.


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