Bitcoin close to surpassing Mastercard in daily transfers

posted 5 months ago
Bitcoin is close to overtaking MasterCard by amount of value transferred daily, with Bitcoin moving $8 billion in the past 24 hours, while MasterCard averages $11 billion a day. MasterCard said in their latest quarterly report that they processed $4.4 trillion year to date, while Bitcoin would be at about $3 trillion if we extrapolate from the daily $8 billion. Visa handles far more at about $30 billion a day or $11 trillion a year according to their self-disclosed stats. That’s with a capacity of 65,000 transactions a second. Bitcoin can handle only about 7 tx/s on chain, or about 0.01% of Visa’s. Yet Bitcoin transfers about 25% of Visa’s amount of value processing.

It isn’t very clear why so many bitcoins are moved daily, usually at circa 5%-10% of its market cap. One could say these are mostly transfer to and from exchanges, since all Bitcoin exchanges handled about $7 billion in trading volumes during the past 24 hours. While credit cards handle small transactions, the medium value of a Bitcoin transfer is about $400, with the average being circa $27,000. Meaning Bitcoin is being used as a sort of settlement layer by businesses. Notably, $8 billion is a substantial portion of the entire economic activity in US and Europe, and Bitcoin being fully global gives it a bigger market and thus presumably more use cases.
Tags: bitcoin, news