Over the recent years, the cryptocurrency market has experienced a tremendous growth. This surge has…
Possibilities of Bitcoin Overtaking PayPal in Payment Opportunities
PayPal has a long history of being a key technology company that offers businesses with a digital payment system. For a long time, the company has endeared itself to users by coming up with products that respond to customer needs including having functionality for PayPal invoicing et cetera. This writing doesn’t intend to exalt or loathe PayPal. But, it may be its safe at this point to mention that the company boasts of having 426 million users with an annual revenue of 25.37 billion USD. This makes it look like a juggernaut, right? Now this is the point why maybe, just maybe we need to talk about whether Bitcoin that is experiencing unprecedented growth, may upstage PayPal as a digital payment alternative.
No two thoughts about the fact that cryptocurrency is shaking the online transactions space. With the virtual currency breaking new grounds and conquering new territories, it has the likely effect of sending the long standing online payment system, PayPal 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.
Future of bitcoin as an online payment option
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)
The status of bitcoin as a pioneer crypto can’t be taken away from it. With the introduction of digital currency BTC came about in 2009, and has soared 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 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 block data, 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 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. A fact check clearly shows PayPal as a publicly listed corporation (Plc). As a Plc, PayPal only operates under one major principle which is the shareholder profit interest.
I can therefore conclude that the decision by PayPal is a clear indication that the firm has its strategists coming to an agreement. A popular argument has been that that the notwithstanding the forays of digital currencies, they don’t pose 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. Buying and selling bitcoin through PayPal attracts a a fee which well counts as a revenue stream . Besides, after a period of observing, monitoring, and analysing, PayPal could care less if these users undertake a withdrawal of their coins.