Bitcoin has overtaken PayPal for transaction volumes per quarter in 2021. The decentralized peer-to-peer network processed 62% more dollars for a total of $489 billion, compared to $302 billion processed by PayPal instead.
Bitcoin has surpassed PayPal
According to Blockdata‘s data, Bitcoin’s P2P network has processed 62% more dollar value than PayPal this year. Specifically, the Bitcoin network processed an estimated average of $489 billion per quarter in 2021.
In contrast, PayPal processed an average of $302 billion per quarter in 2021.
Not only that, to see the big picture with the major global payment networks used, the Mastercard network processed $1.8 trillion per quarter, which is 260% more, and the Visa network processed an average of $3.2 trillion per quarter, which is 540% more.
As is now well known, unlike other financial networks, which are maintained by a company from a handful of locations, Bitcoin is instead a decentralized network, maintained by individual nodes, run by people and companies around the world who want to validate their transactions and strengthen the network.
In this regard, the report makes the following comment about BTC:
“It’s impressive how Bitcoin, as a 12 year old decentralized network, is 27% of the way in terms of one metric (volume processed) compared to Mastercard, a company founded in 1966. Especially when you take into account that this is a decentralized movement”.
Bitcoin could surpass even Mastercard and Visa
Having surpassed PayPal, the question arises: could the Bitcoin network also surpass the current giants Mastercard and Visa? From the looks of it, it seems so, although it will take a fair amount of time.
Specifically, the report explains that there are three factors that could make the Bitcoin network grow to the levels of Mastercard and Visa:
- The number of transactions increases.
- The average amount of Bitcoin sent per transaction increases.
- The price of bitcoin increases.
The first option is difficult due to the technical limitations of the system. The second and third options in combination are the easiest.
The report also points out how Bitcoin’s peer-to-peer system operates differently from PayPal, Mastercard and Visa.
In this regard, it states :
“Of course the Bitcoin network processes a lot more than just payments, people use it to transfer funds to and from services, or even between their own wallets. The point isn’t to say that Bitcoin may overtake Mastercard and Visa as payment rails, but to look at how it is transferring as much volume as some financial household names.Bitcoin is also a fundamentally different network from Mastercard and Visa. It is more of a “savings technology” than a “spending (more than you have) technology”. Naturally, they appeal to different use cases and audiences”.
Rising interest from institutional investors
As the price of BTC struggles to stay above the $57,000 mark, after hovering between $53,000 and $59,000 over the past week, institutional investors continue to express their interest in the queen of cryptocurrencies.
In fact, this new surge of interest is probably due to new financial products issued on traditional markets to allow investors to take a position on the price of Bitcoin, even without owning it.
The most widely used instrument is the Grayscale Bitcoin Trust (GBTC), which is being converted into an ETF on the New York Stock Exchange. Not only that, the Proshares Bitcoin Strategy ETF (BITO) is also the first Bitcoin ETF ever approved on the US market.
The great success of these two instruments and others, suggests that institutional investors are increasingly involved and active in BTC.