Research data tapped from international remittance service providers has shown that Bitcoin (BTC) is now the major method used in cross border payments.
Data collated by DataLight experts shows that in 2018, an average Bitcoin transaction volume was 450 times higher than Visa’s average. In the same line, the sum of $3.4 trillion transferred with Bitcoin in 2018 is 58 times higher than that of Paypal.
The investigation compares Bitcoin data with information provided in the 2018 annual reports of some notable international payment options like Visa, MasterCard and PayPal provided in their 2018 annual reports. While there was noticed market capitalisation changes in Bitcoin at the end of 2017, still, Bitcoin’s capitalization was comparable to Visa’s.
Despite the volatility of Bitcoin compared to the traditional market assets, Bitcoin surpasses centralized payment systems in most of the indexes employed. Considering the transaction volume, Bitcoin stands out. The digital asset overtakes PayPal and very close to MasterCard.
The DataLight experts calculated the average sum of a transaction, and discovered Bitcoin is thousands of times ahead in this aspect. Bitcoin’s $40000 is 450 times larger than Visa’s. What this infers is that Bitcoin’s network is more suitable for larger international payments.
Bitcoin Transaction/capitalization Indicator
The transaction/capitalization indicator employed allows the experts to check the network’s activity via the lenses of market evaluation. The outcome reflects Bitcoin’s indicator is higher, making the researchers conclude that the market evaluates Bitcoin higher than it does Visa and Master Card.
Cost of Transferring Bitcoin (BTC)
The research shows that when transferring funds below $100, Visa and MasterCard are more suitable, however, for funds above this, Bitcoin is definitely okay. Bitcoin’s fees are meagre that one can easily send millions of dollars for a dozen cents.
“Its $0.20 fee (as of the end of 2018) is the same for all transactions, even those worth millions of dollars,” the research states.
Below Are Favourable Research Inferences For Bitcoin
- Total volume of transactions is comparable to that of MasterCard
- Low commission for P2P and large sums, making it beneficial for international transactions
- Large number of nodes, nearing its historical maximum
- Decentralized nature
- No censorship
Bitcoin is competing with traditional payment systems that have been in existence since over 60 years ago. If Bitcoin continues in this pace, the cryptocurrency will supersede all traditional payment systems. Also, when Lightning network is fully in place, the upscaling problem that hinders the quick development of Bitcoin network will vanish, the research concludes.