Is Bitcoin Close Enough to Pass Visa or Mastercard?
Today there was quite big discussion on Reddit building up as a user claimed that Bitcoin had passed Visa in the total value of its processed transactions. After a little fact check, we realized that it may just be a bit too early to make those claims. This particular Reddit user claims that Bitcoin transactions have totaled up to $2.4 trillion in the first 8 months of 2018. That would be quite an achievement, considering transactions totaled around $1.3 trillion for all of last year and Bitcoin and many other cryptocurrencies are currently going through a bear market phase.
However, Bitcoin has eclipsed the amount of money transferred through systems like PayPal and the Discovery Card. And Both of these achievements should not be taken lightly.
Is It Possible That Bitcoin Will Overtake Visa or Mastercard?
Bitcoin still has a long way to go to reach Mastercard, which is third on the list of systems that handle the most amount of money in transactions per year. Even if Bitcoin totaled 2.4 trillion dollars in transactions in these first 8 months of the year, it would still trail Mastercard by about 4 trillion.
But to answer the question, yes, it’s absolutely possible but it just won’t happen this year. The real question might be one that is totally different.
How Relevant Would It Be If Bitcoin Passed Visa or Mastercard?
As we’ve mentioned, Bitcoin has already overtaken services like PayPal in total money handled. That stat is far more relevant as both the service and the cryptocurrency essentially provide some of the same benefits. Paypal is branded as an easier way to incorporate money directly into one’s bank account or use one’s cards online. However, it seems that people are tired of the fees charged and prefer the use of Bitcoin. Compared to credit card transactions, Bitcoin usually handles more money per transaction.
Even experts have yet to agree what is the better path for Bitcoin and cryptocurrencies in general — look to compete as a decentralized currency in a centralized world or remain off the grid. Both are viable options. Crypto enthusiasts may ultimately be the ones to decide where the market is headed.