- Visa processed a whopping $8.8 trillion through their network, whereas the famous Cryptocurrency processed $727 billion.
- The key differences between Bitcoin and Visa might hold the answers that will lead to the development of a better payment system that can be widely used.
- Bitcoin is also easier to use as the payments can be made by making the use of QR codes.
The payment database giant Visa processed a whopping $8.8 trillion through their network, whereas the famous Cryptocurrency processed $727 billion. The Cryptocurrency Bitcoin has seen tremendous growth in the last decade. Its growth has often made headlines, and it is still growing at a decent rate. Willy Woo who tweeted about the growth of bitcoin in comparison with Visa.
Apologies for the mistake. $8.8T for Visa. So roughly:
Visa: 10% world GDP (payments)
Bitcoin: 1% world GDP (investment flow)
Bitcoin's investment flow (aka annual investment velocity) is presently growing an order of magnitude (10x) every 4 years.
— Willy Woo (@woonomic) February 13, 2020
But can it compete with a giant like Visa? Well, stats show that even with the decent growth rate of Bitcoin, it is nowhere close to being on the same level as Visa, not yet at least.
The stats roughly are:-
Visa: 10% world GDP(payments)
Bitcoin: 1% world GDP(payments)
This clearly shows that even though Bitcoin is not much in comparison to Visa, but it surely might be a worry in the future. Bitcoin’s investment flow, which is also known as annual investment velocity, is presently growing at the rate of 10 times(10X) every four years.
The key differences between Bitcoin and Visa might hold the answers that will lead to the development of a better payment system that can be widely used. The card transactions that undertake in Visa’s system are all done according to a system, and Visa also charges a small fee on every transaction. Visa also offers protection against fraud using tools in its system.
Unlike Visa’s system, which charges a fee, the Bitcoin system seeks to operate more like cash: exchanged person-to-person without a financial intermediary. Bitcoin also doesn’t provide any fraud protection like Visa, which makes it difficult for people to trust bitcoin.
Bitcoin is also easier to use as the payments can be made by making the use of QR codes, which Visa can’t do and requires a proper physical card and a card reading machine, which makes it a pretty complicated system.
The challenge for companies like Visa is now to make their system more easy to use without the use of so many different cards and machines whilst keeping it secure at the same time.
The growth rate of Bitcoin makes it look like it won’t be long till it catches up with giants like Visa and Bitcoin might even beat Visa in the long run. It is surely a race to keep an eye on as Cryptocurrencies like Bitcoin grow at such amazing rates.