Bitcoin and the general cryptomarket had a bearish season to forget in 2018, but according to recent reports from DataLight, the major cryptocurrency still edged Paypal and Visa in transaction popularity as it gradually makes its way into the e-payment scene.
Bitcoin as a Payment System
The leading cryptocurrency by market capitalization lost more than 80 per cent of its value last year, consequently losing more than $170 billion in market capitalization. 2018 saw Bitcoin nosedive from the record heights it had set in the previous year. Despite its grave performance, recent data collated by experts from DataLight showed that Bitcoin recorded more transaction volume in transfers than Visa and Paypal last year while also beating Visa in average transaction made as increasing number of people favored the cryptocurrency method of transfer for large transactions. DataLight report headlined:
“In 2018 an average Bitcoin transaction volume was 450 times higher than Visa’s average, while the total of $3.4 trillion transferred with Bitcoin in 2018 is 5.8 times higher than such of PayPal.”
Bitcoin as a payment option and method of transfer hold a lot of advantages over conventional systems, and these benefits are ones that have always been associated with the coin and other decentralized coins.
Why Bitcoin Dominates Visa
Experts from DataLight calculated the average transfers that are being made by Bitcoin, which summed up to about $40,000, a number that is 450 times that of Visa’s recorded average. The crypto asset recorded an exact average transaction of $41, 615 in 2018, extremely dwarfing Visa’s $90, MasterCard’s $80, and Paypal’s meager $58.
Also, the whole transaction volume of Bitcoin for 2018, despite the bearish trend for the most part of the year, emphatically outperforms Paypal’s which recorded a total of $578 billion. Bitcoin’s $3.4 trillion is only a little short of MasterCard’s $5.9 trillion.
While Bitcoin’s total transaction volume for the whole year might come as a little surprise given the bearish nature of last year market, it’s domination in the average transaction should come as no surprise. Conventional payment platforms such as Visa, and MasterCard might be appealing and ideal for smaller transactions that are less than $100, bigger transactions however involving tens of thousands of dollars are much more cost effective when sending larger bulk of money.
When using Bitcoin (BTC), the digital coin’s transaction fee of $0.20 remains the same whether for a transfer of $40 or $4 million. Coupled with other advantages such as anonymity and ease of international transactions, Bitcoin’s outperforming Visa and PayPal would gradually grow to be expected.