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The report identified the total number of transactions as the first factor which is described as the most variable-dependent.
A new report from Blockdata has indicated that Bitcoin value processed may surpass the credit card giant, Mastercard Inc (NYSE: MA), in a few years, considering its performance against PayPal Holdings Inc (NASDAQ: PYPL) in terms of value transfer recently.
The market intelligence platform reported that the largest decentralized crypto network, Bitcoin, processed value volume that nearly hit $490 billion each quarter in 2021, while the payment tech company, PayPal had just $302 billion.
Additionally, as a twelve-year-old network, the volume processes per quarter represents 27% of Mastercard’s $1.8 trillion, and 15% of Visa’s $3.2 trillion process volume, respectively.
In the November 25 report titled “When might the Bitcoin network process volumes like Mastercard and Visa?”, Blockdata detailed factors that could make the Bitcoin Network be at par with the duo credit card giants as per total volume processed.
The report identified the total number of transactions as the first factor which is described as the most variable-dependent. It noted that a sporadic increase of over 250% in Bitcoin value transfer per transaction would make it rise to an equal level with Mastercard.
“If Bitcoin were to increase its value transferred per transaction today by ~260%, it would be processing an equivalent volume to Mastercard on a daily basis,” reads the report.
The report did not indicate if there is an upswing in the current average amount transfer on the Bitcoin network. However, it could still make a change. If the price of Bitcoin rises to as high as $245k, and it maintains the trajectory in the trend of its volumes, Bitcoin Network would be on the same level as Mastercard. This price action is considered an effective factor by some analysts.
However, the report did not leave the fact this task could be difficult for Bitcoin Network to achieve, as it doubts Bitcoin price reaching the level to equal Mastercard. Blockdata explains that even if Bitcoin would reach an equal level with Mastercard, it could take up to four decades going by the average yearly Bitcoin price. Meanwhile, if Bitcoin continues the current growth rate, it could reach an equal level with Mastercard in a few years.
The report acknowledges the fact that the decentralized Bitcoin network has performed wonderfully, considering how it has managed to record high volumes compared to the two centralized credit card giants.
It should be noted that the report stated that Bitcoin’s network could also take as long as 2060 before it might reach the Dollar volume being processed by the highlighted financial tech companies.