Crypto Experts Agree: It’s Not Wise to Compare Bitcoin (BTC) to Centralized Payment Systems

2018-11-14 18:54

Bitcoin is the largest and most popular virtual currency in the cryptocurrency market. It can be used to process transactions of $1 million dollars or more or even $1 dollars’ transactions. However, the miners have to pay the same price for processing a very small payment or large transactions.

For example, back in September, $193 million dollars were moved on the Bitcoin network for less than $0.2 dollars. Using traditional transfers and payment systems, this transaction would have cost much more expensive and would have taken days to be settled. Furthermore, a lot of compliance work would have been required to clear a payment of this size.

According to the researcher Nic Carter, a Partner at Castle Island Ventures and co-founder of Coinmetrics.io, explained that a comparison between Bitcoin and other centralized systems such as PayPal is inaccurate taking into account the number of transactions per second (TPS).

According to the image shown and created by Carter, Bitcoin and credit card networks (centralized systems) target completely different markets. Credit and debit cards, including other payment systems such as PayPal, target users that want to process small payments. Bitcoin, instead, aims at processing larger payments more efficiently.

In a blog post uploaded a few days ago, Carter wrote:

“Bitcoin transactions tend to be quite large. It’s hard to know the precise number, but your average transaction will be in the thousands of dollars, possibly tens of thousands. Your median transaction is well over $100.”

Indeed, it is possible to see multi-million dollars payments to be processed on the Bitcoin network in a very easy way. These kinds of payments are not usually settled using credit cards. This shows that it is not possible to compare Bitcoin and other centralized systems because they have been created for different use cases.

Carter noted that TPS can be used as one of the many measurements to evaluate and compare payment networks. The number of transactions per second will be a good way of comparing products and services that work in a similar way. A payment system such as credit cards or cash cannot be compared to a settlement system such as Bitcoin or gold. The functionalities are different and so their results.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Bitcoin (BTC) íà Currencies.ru

$ 66080.69 (+0.49%)
Îáúåì 24H $36.849b
Èçìåíåèÿ 24h: 7.35 %, 7d: 6.32 %
Cåãîäíÿ L: $61392.69 - H: $66158.9
Êàïèòàëèçàöèÿ $1301.708b Rank 1
Öåíà â ÷àñ íîâîñòè $ 5832.71 (1032.93%)

transactions payment dollars bitcoin however miners even

Èñòî÷íèê: bitcoinexchangeguide.com

transactions payment → Ðåçóëüòàòîâ: 126


Circle Crypto Company Attacks Paypal for Increasing Venmo’s Withdrawal Fee

Circle Attacks Paypal As Company Raises Venmo’s Withdrawal Fee Paypal has recently been criticized for raising the fees of its mobile payment platform Venmo. Starting on November 6, Venmo will raise its fees for when account holders transfer money using their debit cards with 30-minute transactions to 1%. Previously, the fees were 0.25%, which has […]

2018-10-16 00:52


Ôîòî:

How Monero Are Improving Human Rights With XMR

 Listen Here – https://soundcloud. com/cryptodaily/how-monero-are-improving-human-rights-with-xmr Monero is considered to be the privacy coin, the currency of choice for absolute privacy. Now, privacy doesn’t necessarily mean security and we should remember that 2018 has seen a tonne of ‘Monero mining’ hacks, calling into question some of the projects integrity.

2018-10-12 17:00


Litecoin Will Fly If It Makes The Most Of Social Media

The pursuit for cryptocurrency adoption seems to focus on three major cryptocurrencies, Bitcoin, Bitcoin Cash and Litecoin. Indeed, this isn’t to disregard the likes of XRP and Stellar, both of which also provide a solid use in mainstream society, however in terms of worldwide societal adoption, Bitcoin, Bitcoin Cash and Litecoin tend to be the go-to currencies.

2018-10-10 16:30


Top 10 Bitcoin Payment Gateways for 2018: Knowing the Risks vs Advantages

Top 10 Bitcoin Payment Gateways for 2018 As more people become open to the idea of cryptocurrencies, tokens like bitcoin will gain even wider acceptance than they are currently enjoying. In fact, there are more retailers accepting bitcoin payments now because of the availability of technology as well as the ease of transactions. Bitcoin payments […]

2018-10-1 00:38


RippleNet’s ‘Multi-Hop’ Feature to Ease Cross-Border Transactions in S. East Asia

In traditional banking, for there to be a cross-border payment, two banks had to be directly connected on a one-on-one basis. The situation in the Association of South Eastern Asian Nations (ASEAN) was exactly this way up until the Siam Commercial Bank (SCM) –  a member of RippleNet – became the first financial institution in […] The post RippleNet’s ‘Multi-Hop’ Feature to Ease Cross-Border Transactions in S. East Asia appeared first on Ethereum World News.

2018-9-29 10:51


äàëüøå åùå 77 íîâîñòåé →

Ïàðòíåðû Currencies.ru

Ðåêëàìà íà Currencies.ru

Ñàìîå ñâåæåå íà Currencies.ru

Bitcoin, Ethereum underperform as crypto market remains bearish

Bearish sentiment dominated the crypto market. BTC and ETH led the bearish sentiment with their poor price trends. While holders of certain meme coins may be celebrating significant gains inThe post Bitcoin, Ethereum underperform as crypto market remains bearish appeared first on AMBCrypto.

What's in store for XRP as XRPL development activity picks up pace?

The increase in development activity had little to no effect on XRP's price. A good buying opportunity might have presented itself, on-chain data revealed. Development activity on the XRP LeThe post What's in store for XRP as XRPL development activity picks up pace? appeared first on AMBCrypto.