November 23, 2018 AtoZ Markets–MasterCard, a leading global payments company, entered the money transfer battle with Bitcoin.
Numbers say a lot
According to the MasterCard public records, the company moves about $11 billion every day. Since the beginning of 2018, it has processed about $4.4 trillion worth of transactions. The same time, despite the ongoing its value fluctuations, Bitcoin has recently maintained an average daily transfer value of about $8 billion. There is no information about the total worth of Bitcoin transactions, but extrapolating from the daily transactions’ volume, one would infer that the average annual amount is some $3 trillion.
Bitcoin might overtake MasterCard in daily transaction values
Bitcoin is relatively new, while MasterCard is a financial giant, which has been operating for decades. Bitcoin has a slower transaction speed compared to MasterCard, as the currency is capable of conducting a maximum of 7 transactions but has an upper hand when it comes to the amount of value moved with each transfer. MasterCard processes small transfers at an average of about $25 per transfer. The average Bitcoin value transfer is about $27,000. The average cryptocurrency is worth much more than a dollar which is why any single cryptocurrency transaction is guaranteed to be significantly larger than a transaction on MasterCard.This is one of the reasons why more and more people prefer Bitcoin and cryptocurrencies to cash for payments and transfers. As merchants extremely interested in the low transaction costs and fast transaction times considering the size of the transactions, Bitcoin might eventually surpass MasterCard.
Other Cryptocurrencies fail to compete with MasterCard
Despite the success Bitcoin is said to have made, other cryptocurrencies, such as Ethereum or Bitcoin Cash, did not come close to MasterCard – or Bitcoin itself in that regard. According to its public records, Ethereum moves about $600 million worth of value daily, Bitcoin Cash transfers an average of $120 million every day, while Litecoin transfer $50 million more. As Ripple’s record was not available there is no exact information this crypto activity, but analysts estimate that it handles millions of dollars daily. Despite Bitcoin struggles with a drop in its value, this crypto’s ability to compete with such giant company as MasterCard, shows, that cryptocurrencies might stay in a financial market for a long.
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