Bitcoin Surpassed Online Payment Giant PayPal In Annual Transaction Volume
Bitcoin (BTC), the largest and most popular digital asset in the market, has surpassed the online payment company PayPal in the number of annual transactions. According to data provided by global statistics portals, Bitcoin handled $1.3 trillion worth of transaction volume in 2018.
During the same period of time, PayPal recorded $578.65 billion worth of payment transactions. This is the second time in history that Bitcoin is able to surpass PayPal in the number in terms of transaction volume. Back in 2017, Bitcoin handled $1 trillion worth of transactional volume.
Although they work in different ways and Bitcoin did not have a good 2018 in terms of price action, Bitcoin surpassed PayPal for the second year in a row. According to the World Bank, overall cross border transactions increased around 10% reaching $689 billion in 2018.
There are several individuals in different countries that are sending funds back to their families using services such as PayPal or cryptocurrencies, including Bitcoin.
According to a recent report released by Diar, the cryptocurrency market has registered a record of transaction volumes among the leading cryptocurrency exchanges in 2018. Bitcoin was the most traded digital asset. This shows that individuals were not only trying to send cheap payments around the world but also traders influenced these results.
It is not possible to know the exact number of individuals using Bitcoin for remittances. The digital asset is also generally used for speculation purposes. The World Bank believes that the remittance market could grow 3.7% in 2019 and reach $715 billion. That means that companies such as PayPal could continue registering new records in terms of transaction volumes in the future.
Moreover, Bitcoin is also expected to reach a larger number of institutional investors. There are several firms such as Fidelity Investments and the Intercontinental Exchange that are working on crypto solutions for institutional investors. Moreover, the U.S. Securities and Exchange Commission (SEC) could also approve a Bitcoin ETF in the future, allowing Bitcoin’s transactions to reach new highs.
Nonetheless, as Bitcoin is becoming a more investable asset, there are fewer chances for individuals to start using it as a remittance tool. The price of Bitcoin tends to experience periods of high volatility, which might not be the best for remittances and individuals searching for stability and fast transactions.
At the moment, there are several stablecoins that are starting to offer services to users. For example, Tether (USDT) is backed by USD and it allows individuals to send and receive funds in a fast and easy way without having to be worried about volatility in the cryptocurrency market.
According to BitInfoCharts, Bitcoin transactions are currently at the same level they were back in December 2017 when Bitcoin was reaching new all-time highs. Moreover, the network is processing a similar amount of transactions as during 2017. On February 25, Bitcoin processed 336k transactions, a 33% increase compared to December 23rd.
At the time of writing this article, Bitcoin is being traded around $3,850 and it has a market capitalization of $67.6