Erik Weijers, a year ago
The Bitcoin network has overtaken PayPal in terms of the total amount of money circulating. Mastercard is the next prey, which could happen as early as 2024, predicts Blockdata, a market intelligence platform. On average, in 2021, the Bitcoin network processed $489 billion worth of transactions per quarter. PayPal processed an average of $302 billion per quarter.
Are the two payment networks even comparable, though? Bitcoin (BTC) is more than a payment rail: many people use it as a savings tool and don't move their Bitcoin for months or years. So, in that light, it is notable that it has overtaken PayPal in terms of monetary volume. On the other hand, not all transactions on the Bitcoin network are strictly payments. Suppose you move Bitcoin from one wallet to another wallet you own. This move is counted as a transaction in these figures, even though it is not an actual payment.
Looking at the value of the average transaction, we see a vast quantitative difference. The average Bitcoin transaction now has a value of about 20 thousand dollars. An average PayPal transaction is about 70 dollars. Because the Bitcoin network has a limited capacity in terms of the number of transactions - an order of magnitude smaller than Paypal - the average transaction amount is only expected to increase with Bitcoin’s increasing popularity. Transactions for smaller amounts are expected to increasingly go over the so-called Lightning network. There the costs and processing times are much lower than on the base layer of the Bitcoin network.
In short, comparing Bitcoin with a conventional payment processing operator is a bit apples to oranges. But it is still interesting that Bitcoin has overtaken PayPal, which is about twice as old (PayPal was founded in 1998). PayPal employs over 25 thousand people. Bitcoin has no one on its payroll.
Mastercard and Visa are next on the list. Bitcoin users will have to roll up their sleeves. Mastercard currently processes more than three times the value of Bitcoin. Visa more than five times as much. But things are evolving fast. As you can see in Blockdata's graph, the monetary volume of Bitcoin transactions in 2021 is already a multiple of its volume in 2020.
Mar 30, 2023
There are true believers out there who think that the world can be saved with and through Bitcoin. Some argue that they are completely out of their minds while others listen and try to figure out if this perspective reveals at least an ounce of truth. Sticking to the narrative that many Bitcoiners are following, the truth is that institutions like the ECB have become obsolete and do more harm than good.
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Zero-knowledge (ZK) proofs have been tested on Ethereum and they are an exciting new idea that can also improve Bitcoin. A non-profit organization from Switzerland based in Zug is one of many other organizations that is working currently on making ZK-proofs available on Bitcoin. According to several media reports, they finally had a breakthrough in delivering the technology. Let’s take a look at what ZeroSync has developed for Bitcoin.
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MicroStrategy has done it again! The company bought Bitcoin and while this doesn’t come as a surprise, the circumstance of the recent move is remarkable. Many critics have pointed out that investment in Bitcoin is risky. Most recently, the market proved that banks can be more volatile than Bitcoin. MicroStrategy took advantage of this fact and made another strong move that drove media attention to the company.
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Tim Draper is well-known for his conviction about Bitcoin. The billionaire bought 30,000 BTC in 2014 during the Silk Road Bitcoin auction. An investment that turned out to be fruitful, to say the least. Because of his conviction, Draper is more than biased when it comes down to the mother of all cryptocurrencies. On the other hand, his success can be interpreted as an indicator that Draper might know a thing or two that other investors don’t. Recently, Draper advised on how business owners and managers should deal with the banking crisis.
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