Bitcoin Could Overtake Visa And Mastercard’s Market Cap In The Near Future Says Major VC Investor
Anthony Pompliano, the founder of Morgan Creek DigitalAssets, believes that Bitcoin is going to surpass Visa’s and MasterCard’s market capitalization in the next months. A few days ago, the European Commission sanctioned MasterCard with a $648 million fine claiming that the company raised credit and debit card fees in the different countries of the European Union (EU).
According to a recent report released by the Wall Street Journal, the EU said that the decision to increase these fees created limited competition across borders and stunting economic growth in the bloc.
As Margrethe Vestager, an antitrust powerhouse in the EU, preventing merchants from shopping around for better conditions offered by banks in the EU, MarketCard’s rules raised the costs for card payments. This is something that harmed consumers all over the EU.
In general, credit card companies charge an average of 1.5% of fees per each transaction, thus, there are several retailers that are moving towards Bitcoin and other digital assets.
Pompliano said that Bitcoin would be able to surpass the market capitalization of both Visa and MasterCard in 36 months. According to data provided by Diar, Pompliano explained that Bitcoin miners received $5.8 billion in revenue in 2018. Meanwhile, other companies such as Visa or MasterCard registered $21.1 and $14.9 billion in revenue respectively.
Additionally, Visa has a market capitalization of $302 billion while MasterCard has a market cap of $201 billion. At the same time, Bitcoin has a market capitalization of around $62.47 billion.
Pompliano decided to pay close attention to the revenue multiple – this is, the revenue to market capitalization. In this case, he mentioned that Bitcoin is undervalued when it is compared to Visa or MasterCard.
Anthony Pompliano commented on the matter:
“Today it is 1/4th the market capitalization of MasterCard and 1/6th of Visa, but it wouldn’t surprise me if Bitcoin surpasses both within the next 36 months. The legacy networks were built for a world that we no longer live in and the decentralized network is built for the future.”
Bitcoin is growing all over the world as a means of payment and also as a store of value.
As it works in a cheaper way, several companies are starting to accept Bitcoin rather than PayPal or other payment systems available in the market.