With a daily transaction volume of over $ 8 billion, Bitcoin (BTC) is on track to beat Mastercard, the world's second largest credit card network in volume.
On October 30, Mastercard published the financial results for the third quarter of 2018. Since the beginning of the year, the credit card company has processed approximately 4.4 trillion dollars. On a daily basis, Mastercard settled nearly $ 12 billion a day.
Bitcoin, the most valuable cryptocurrency in the global market, has worked just over $ 8 billion each day. According to a chart published by Trustnodes, BTC was able to cancel 272,000 transactions a day valued at $ 8.14 billion.
Mastercard and other credit card networks such as Visa mainly handle payments made to merchants in ecosystems both online and offline. Therefore, the comparison between the entire volume of BTC transactions and the volume of Mastercard can be considered inaccurate.
A more accurate comparison of the volume of Bitcoin would be against the volume of the offshore banking sector as both individual and institutional investors who process large cross-border payments.
In short, the daily volume of $ 8 billion BTC is a combination of currency transfers, cross-border payments and commercial transactions, while Mastercard represents only the transfer of money to and from traders.
However, as a minor currency with a total market capitalization of less than $ 100 billion, approaching the volume of one of the major credit card networks is an important milestone for Bitcoin.
Previously, the volume of the major cryptocurrencies was often compared to issuers of remittances such as Western Union such as Visa, Mastercard and large financial institutions were out of reach.
The data show that cryptocurrencies are currently used primarily as a store of value and as a means of transferring large sums of money. Indeed, large cross-border payments are the only advantageous feature of cryptocurrencies compared to legacy systems in terms of efficiency and convenience.
At the beginning of this week, Binance, the world's largest cryptocurrency exchange, sent $ 600 million with a commission of $ 7. To send $ 1 million through a bank in an international wire transfer, it could cost institutions almost $ 10,000 of taxes. To send $ 600 million, a rigorous verification phase, a period of approval and significant documentation is required.
The Adoption of the Merchant will materialize
In the end, when cryptocurrencies like Bitcoin are adopted as a legitimate alternative to legal currencies, more traders will adopt the digital resource. Thus, it would be possible to compare commercial transactions through cryptography with the volume of the main credit card networks.
Towards the end of 2017, awareness of cryptocurrencies increased exponentially as BTC reached its all-time high at around $ 19,500. However, merchant adoption remains relatively low and cryptocurrencies are difficult to use in offline stores.
In the long run, strictly regulated organizations such as Bakkt supported by leading financial institutions such as ICE, Microsoft and Starbucks could drastically improve merchant adoption by providing a simple method for merchants to manage cryptocurrency payments with sufficient liquidity.
Considering that the total volume of Mastercard is aimed at the volume of each local currency supported by the credit card network and the comparison between BTC and Mastercard takes into account only the volume of BTC, BTC near the Mastercard volume is still an important result for the class of activity.
Get an exclusive cryptographic analysis by professional traders and investors on Hacked.com. Register now and receive the first month for free. Click here.