Bitcoin’s transaction volume surpasses that of PayPal

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Digital currencies will undoubtedly rule the roost in 2021, growing in popularity as a way of conducting digital transactions and an appealing asset class for investing. For example, Bitcoin’s network has already eclipsed payment behemoth PayPal in terms of transaction volume by dollar value, as per a new analysis from Blockdata.

In 2021, the top digital currency will handle an average of $489 billion each quarter, greater than PayPal’s current quarterly processing of $302 billion. In contrast, the two most popular credit cards, Mastercard and Visa, handle an average of $1.8 trillion and $3.2 trillion every quarter, respectively. Bitcoin’s transaction processing volumes have risen to such high levels in less than 13 years of existence, which is astonishing.

According to the analysis, if Bitcoin’s price rises to $245k, it would surpass Mastercard in terms of network volume, which may happen as soon as 2026 if present growth rates continue. In addition, of course, the paper points out that Bitcoin’s network is significantly more adaptable than Mastercard and Visa’s, being used for payments, money transfers, and as a store of value, among other things.

The Bitcoin network completed roughly 25 million transactions every quarter on its blockchain last year, equating to around 280k transactions per day. In the meantime, Mastercard’s numbers show an average of 33 billion transactions every quarter and roughly 366 million transactions per day during the same period.

The Blockdata analysis also points to surging inflation in various nations as a crucial driver in Bitcoin and other digital currencies’ extraordinary rise this year. People are turning to Bitcoin as an investment possibility because of its network effects, accessibility, track record, and scarcity, especially in nations where inflation is in double digits.

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