Bitcoin ($8 Billion) Eyes Mastercard ($11 Million) in Daily Transfer Wars
MasterCard is one of the leading money transfer systems in the world. However, its position is being challenged by Bitcoin, the main face of the cryptocurrency market.
Comparing The Numbers
MasterCard moves about $11 billion daily according to its public records. Bitcoin, on the other hand, has recently maintained an average daily transfer value of about $8 billion – in fact, the platform cleared as much in the past 24 hours in spite of the ongoing turmoil. Overall, MasterCard has processed transactions worth about $4.4 trillion since the beginning of 2018. These statistics are not available for Bitcoin but extrapolating from daily transaction values would give an average annual figure of $3 trillion.
Visa, on the other hand, is out of Bitcoin’s sight for now. The network is the largest money transfer platform in the world with an average daily transfer value of about $30 billion and an annual transfer value of about $11 trillion.
The Underlying Factors
It comes as a surprise that Bitcoin is close to overtaking MasterCard in daily transaction values considering that it is relatively new – MasterCard has been around for decades while Bitcoin only went main-stream in 2016! However, there are several factors that can explain all this.
First, it is important to understand that Bitcoin – and most of the major cryptocurrencies in general – has slower transaction speeds compared to MasterCard and Visa. For instance, Bitcoin can conduct a maximum of 7 transactions per second while Visa processes over 65,000 transactions per second. However, Bitcoin has an upper hand when it comes to the amount of value moved with each transfer.
MasterCard processes small transfers at an average of about $25 per transfer. Bitcoin, on the other hand, can move thousands of dollars with each transfer – the average Bitcoin value transfer is about $27,000. What’s more, the average cryptocurrency is worth much more than a dollar – as such, any single cryptocurrency transaction is guaranteed to be significantly larger than a transaction on Visa or MasterCard.
Interestingly, this is one of the reasons why more and more people prefer Bitcoin and cryptocurrencies to cash for payments and transfers. Businesses and merchants, in particular, are enticed by the low transaction costs and fast transaction times considering the size of the transactions. As such, it wouldn’t be a surprise if Bitcoin eventually surpassed MasterCard and even Visa.
How Other Cryptocurrencies Perform
Ethereum moves about $600 million worth of value daily according to its public records. Bitcoin Cash, on the other hand, transfers an average of $120 million a day while Litecoin transfer $50 million more. Ripple’s records are not available as the company is somewhat private, but analysts estimate that it handles millions of dollars in daily transactions.
The fact that Bitcoin is almost overtaking MasterCard in daily transactions is proof enough that cryptocurrencies are here to stay. This is even more amazing considering that Bitcoin is currently struggling with a drop in its value.