A new study shows that if current developments continue, Bitcoin will surpass all competitors from payment systems such as Visa and MasterCard in 10 years.
Bitcoin will beat Visa and MasterCard
In this study, Bitcoin was used to compare with traditional payment providers such as PayPal, which made the predictions after noting the rapid development of this cryptocurrency since its inception in 2009.
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In just 10 years, Bitcoin has successfully competed with the leaders in the payments industry. The development of Bitcoin has grown exponentially.
If you keep this growth rate, it will surpass all competitors in another 10 years.
Visa came out in 1958, and in 1966 MasterCard was subsequently established. PayPal was born in 1998 and has become a competitor not to be underestimated in the industry, and Bitcoin has developed more rapidly.
At the same time, DataLight further predicts that although Bitcoin currently has technical barriers, it will become the world's premier payment network.
At this stage, Bitcoin's payment system is much better than traditional international payments and wire transfers.
The technological advances of the Bitcoin network will certainly help it become the world's leading payment system.
Looking for clues from the data
DataLight is so optimistic about Bitcoin because of its network activities. Although Bitcoin lags behind important players based on French currency in certain areas (such as capacity), it excels in other aspects (such as average transaction value).
In 2018, the average transaction value of Bitcoin was $41,615, while Visa, MasterCard, and PayPal were $90, $80, and $58, respectively. This shows that Bitcoin is practical as a way to transfer large amounts of money. Investors prefer this approach because its fee structure is more inclined to pay in large amounts than to pay in small amounts.
At the end of 2018, the advantages of Bitcoin users became more apparent, and online transaction costs fell to a low point, and even small payments could be sent and confirmed in a low-cost manner. Major chain expansion schemes such as Lightning Network will eventually solve the cost competition problem.
In addition, DataLight also pointed out the advantages of bitcoin decentralization. Bitcoin has more than 10,000 "data centers" (or nodes) supporting its network, while Visa, MasterCard and PayPal have only 119, 98 and 51 data centers respectively.
The number of Bitcoin addresses is currently about 25 million, which is much lower than the number of credit and debit cards in circulation, but each "account" is capitalized more than the existing payment network.
The optimistic predictions about Bitcoin's development in the coming years are far more than these researchers. In addition to investors such as investor Tim Draper, Twitter CEO Jack Dorsey is also one of the main supporters.
Dorsey has said that he expects Bitcoin to become a global Internet currency by 2028.