Number of accounts/capitalization is a compound indicator, which means it is defined by the market. It allows us to see the values between which the indicator is located. The values of this indicator displayed by Visa and MasterCard are quite close, which means they are market standards. ’s values are significantly higher due to a low number of accounts.
With approximately 25 million accounts in 2018, loses not only to Visa and MasterCard, but also to PayPal.
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2018 was a tough year for , as its capitalization fell five fold, the price fell from $20000 to $3000 and the number of negative media impressions increased each month.
However, there are many good signs:
– Total volume of transactions is comparable to that of MasterCard
– Low commission for P2P and large sums, making it beneficial for international transactions
– Large number of nodes, nearing its historical maximum
– Decentralized nature
– No censorship
– Anonymity
competes with payment systems that were founded in
1958 — Visa
1966 — MasterCard
1998 — PayPal
was introduced only in 2009.
Traditional payment systems developed their companies for as many as 60 years prior to becoming industry leaders. They have developed gradually, conquering region after region, unlike , which became available worldwide immediately. In just 10 years, has managed to compete with the leaders of the payment system industry. ’s development is occurring exponentially.
If it maintains this pace, in another 10 years, it will surpass all competition.
was the first ever and its code is still imperfect. However, with all of its imperfections it is still many hundred times faster than the existing wire transfers. ’s fees are so small that you can transfer millions of dollars for a dozen cents. This is the reason many financial organizations find it so attractive.
Right now ’s payment system is much superior to the conventional international payments and wire transfers. Technical improvement of ’s network is almost certain to make it the world’s main payment system. This is why the bear trend of 2018 will be another dip before the exponential growth and new all time highs.
At the moment, the only factor that hinders quick development of ’s network is its upscaling problem. However, the solution for this problem — the Lightning network — is upcoming. This technology will allow to increase its upscaling potential and network bandwidth tenfold.
The Lightning network will be the main focus of our next study. Subscribe to DataLight on Twitter, Facebook, Reddit and Steemit for the latest updates!
Published at Sun, 31 Mar 2019 17:48:04 +0000
