Can Bitcoin Ever Compete with Visa as the Global Payments Race for The Future of Finance is Forming Fast
There is a constant search for alternative methods of payments and financial transactions either to simplify the processor to eliminate certain factors that affect the cost of carrying out these transactions. This is probably why cryptocurrencies are very much in vogue now with many of them continuously springing up quite regularly.
There has been a lot of progress in the crypto industry that some have speculated that Bitcoin (BTC) which is in the lead regarding all cryptocurrencies, has been regarded as a good enough alternative to one of the world’s biggest payment platforms – Visa. It would seem, however, that such speculation is a bit of a reach.
Comparing Bitcoin And Visa
Compared to Visa, Bitcoin is a little too expensive as the cost of its transactions is 300% higher than Visa’s. Recent data shows that Bitcoin still has a long way to go if it is to beat Visa at all. Currently, Bitcoin has successfully processed 88 million transactions with a total value of about $264 billion and an average fee of $0.64 per transaction. This is a small number compared to Visa’s 120 billion transactions, with a value of $11.2 trillion at an average fee of $0.22.
Furthermore, if the cost charged to BTC holders for the maintenance and security of the Bitcoin Network is considered, the $0.64 cost earlier stated multiplies almost 80 times to a figure of $45 per transaction. This would seem like a ridiculous figure to most BTC holders especially because no one really notices it. Apparently, the reason this goes unnoticed is solely the instability of the market.
Considering the speed of both networks, Bitcoin is a few thousand miles behind Visa. Currently, Visa can handle up to 24,000 transactions in one second as opposed to Bitcoin’s meager figure of 6.1 in the same period. The Bitcoin network is the slowest of all cryptocurrencies when ranked by how many transactions processed per second.
Another interesting point to consider is the years of experience that Visa has had. Specifically, Bitcoin was birthed about 10 years ago in 2009 which is at least thirty years after Visa was born. The payment company is said to have more than 3 billion cards in worldwide circulation and even though Bitcoin doesn’t operate like that, Visa is the biggest payment processor in the world when ranked among others who don’t operate with blockchain technology.