Bitcoin settled more transactions in the first quarter of 2021 than all credit card networks combined for the whole year, according to a recent NYDIG review of transaction data.
A new study shows that in 2021, Bitcoin’s yearly transaction volume would surpass the volume of some well-known card networks, such as American Express (AmEx) and Discover.
Bitcoin processed $3 trillion in payments in 2021, according to a research by NYDIG Research Weekly, placing it ahead of popular credit card networks American Express ($1.3 trillion) and Discover ($0.5 trillion) during that timeframe.
Additionally, the Bitcoin network settled more transactions than all credit card networks combined in the same period. This is a statement from report writers Greg Cipolaro and Ethan Kochav of NYDIG, in Q1 of 2021,
They said that this is astonishing growth for a payment network that just celebrated its 13th birthday. The first American Express credit card was issued in 1958, while the first Discover credit card was issued in 1985.
Bitcoin vs. AmEx
In terms of transaction volume, Visa and MasterCard handled $13.5 trillion and $7.7 trillion, respectively, on the Bitcoin network.
Furthermore, the study only looked at the monetary value of transactions, not the total number of transactions. Consequently, rather than using Bitcoin to pay for anything, it’s likely that the vast majority of transactions involved people purchasing, swapping, and selling their Bitcoin.
Despite this, Cipolaro and Kochav claim that Bitcoin’s five-year compound annual growth rate has been phenomenal.
According to a November 2021 Blockdata research, Bitcoin’s network could hypothetically match Mastercard’s in dollar transactions by 2026. In addition, the Bitcoin network currently processes more dollars in transactions than PayPal does.
More than PayPal’s $302 billion a quarter, the BTC network is expected to process in 2021 according to the report.
Instead of reporting the raw volume of on-chain transactions, the Bitcoin transaction volume measurement depends on statistical analysis by data providers like Glassnode. This is to eliminate transactions with little economic significance.
Intra-entity transactions (intra-wallet transactions) take place within the same wallet or among wallets owned by the same organization. Such a business could include a cryptocurrency exchange that often transfers Bitcoin between different addresses. Generally, we should treat the $3 trillion amount cautiously, as a rough estimate.
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