Smart people Get Passive Income from Cryptocurrency, this is what they do
05.07.2022
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It is public knowledge that cryptocurrency is a new currency type that aside from being…
Possibilities of Bitcoin Overtaking PayPal as a Payment Option
Cryptocurrency is shaking the online transactions space. This reality has a likely effect of sending long standing payment options back to the drawing board. At this point, it is great to note that the entry of crypto into the market has created mixed reactions but no signs are on sight that the virtual currencies are going away any soon.
WARNING: Investing in crypto, or other markets, can be of a high risk for your savings. Do not invest money you cannot afford to lose, because there is a risk for losing all of your money when investing in crypto, stocks, CFDs or other investments options. For example 77% of retail CFD accounts lose money.
If the overtures of bitcoin into the Central African Republic as a legal tender and increasing use by retailers is anything to go by, PayPal and other online payment options have reasons to recalibrate. Without necessarily pointing at any bleak future for PayPal, it is fair to note that it may not continue enjoying dominance as was before. Cryptocurrencies in their different names are in the block and that is something PayPal must contend with .
There are those that understand and see the great possibilities of financial technology. With the ushering of BTC in 2009 into the digital currency market, cryptocurrency is for sure unstoppable. Ever since this launching there has been no turning back as numerous investors are still investing.
Cryptocurrency is alluded to the fact that it was created with an intention of facilitating online buying and selling. Today, crypto has become a buzz word for if it’s not investments, then it’s the crypto exchanges happening all through. Crypto has initiated investors and traders into a financially motivated realm.
People are greatly making money and huge profits from cryptocurrency. The huge question at stake now is if your financial network is ready for digitalization? Well, the best and necessary connectivity is vital for a successful financial digitization initiative. The possibility is evident from a dedicated network such as that of BTC.
A Little Background About Bitcoin (BTC)
Bitcoin remains the oldest and the first crypto to be created but has shown resilience against the jinx of pioneers that often fall by the wayside. With the introduction of digital currency BTC came about in 2009, and it has reigned to be the most famous of them all. It is in most instances compared to gold yet there are numerous other cryptos alongside BTC.
For every transaction that is channelled, BTC offers an access time secure, reliable, cloud-enacted, and a high-performance network streamlining your digital connectivity. I discovered that the utmost three factors could drive the BTC network towards a two-level credit card giant. This is mostly connected to the total volume being processed.
Basically, we are looking at the total number of transactions performed, the average amount of BTC transacted, and the rise in BTC prices. The perceived future rise in BTC prices from the blockdata, suggests a rise in price to $245,000. This would automatically boost BTC to match the Mastercard.
However, some sources reveal that it may not be possible after all for BTC price to rise to the appropriate level of Mastercard. Given the annual average BTC price, this growth might go until the year 2060. But considering the current growth rate with 2022 as a metric, this growth is possible by 2026.
Bitcoin Processing more Dollar Value?
According to the recent market intelligence platform, the high number of dollar transactions value processed by BTC, defines a new level. Bitcoin could just be on its grand way to outstrip Mastercard.
It is not a secret that in the recent news, BTC surpassed the greatest of all time, payment technology, PayPal. This was possible through the analysis of the value transfer. The recent BTC network recorded $489 billion in terms of quarterly processed value while PayPal recorded corresponding $302 billion.
This for sure was a major advancement for the cryptocurrency industry. The recorded processed values are now pacing further against those of Visa and Mastercard. It also includes the competition against other leading payment companies globally. There are great possibilities that Bitcoin could overtake PayPal in payment opportunities.
Can BTC Match Mastercard?
According to the dollar values of transactions that BTC processes, this could just be possible. Blockdata recently indicated how the BTC network could match up Mastercard or even Visa alongside other leading payment companies.
With a possibility of BTC raising its value transferred on each transaction today by about 260%, then there could just be hope. Bitcoin could be cleared to process an equivalent value transfer volume to Mastercard daily.
The rising price of BTC stands to be yet another potential aspect that could match its network value process to that of Mastercard. It is evident that if BTC maintains the current flagship and rate of growth, then there is a potential to level Mastercard’s in a few coming years. This particularly looks at the year 2026.
PayPal Enabling Bitcoin Withdrawals
While BTC has performed very well for a network started a little over a decade ago, it could not still match Mastercard and Visa. Though its dollar value transaction has also gone beyond PayPal, the Silicon Valley processor still allowed BTC’s withdrawals to its user’s external wallets.
This was however, a news that became hugely celebrated by the digital currency critics and media outlets. The real reason for their celebration could however be connected to their misplacement of the actual story.
The decision by PayPal to allow such a deal was to basically show that BTC was not a threat to its operations at all. An understanding I get is that PayPal is a publicly listed corporation thus it only operates under one major principle. The shareholder profit interest.
I can therefore conclude that the decision by PayPal is a clear indication that the firm’s strategists are agreeing. The main agreement has been that the digital currencies are not a threat to PayPal’s centre of payment operations. The main generator of PayPal’s vast bulk business, billions in its yearly profits, is not in any danger.
PayPal is doing well extracting gains from the user fees applied. When the users buy and sell their coins, a fee is applied. Besides, after a period of observing, monitoring, and analysing, PayPal could care less if these users undertake a withdrawal of their coins.
