Despite the tenacious winter in the crypto space, Bitcoin [BTC] has emerged as the winner in the payment sector by outpacing payment behemoth PayPal for the second consecutive time. Bitcoin recorded a transaction volume of over $1 trillion, whereas the traditional payment giant PayPal stood at $578.65 billion, nearly half of the former.
The annual transaction value, as charted by a leading statistics portal Statista, showed a tremendous increase in volume since 2013. The yearly transaction volume increased by 23% from 2017 to 2018.
Citing the source of the large Bitcoin volume, the latest Diar research stated:
“… the largest wallets are owned by cryptocurrency exchanges that are holding the coins on behalf of clients. In fact, 3.8% of the total bitcoin supply are currently sitting in the top 5 wallets that are known to be managed by major exchanges – approx. $4.2 billion in value.”
Last year, the World Bank statistics had revealed the growth of remittance market from 2017 to 2018 by 10%, surpassing the previous growth level of around 8% in the year 2017. The bank has further estimated the remittance space to soar by 3.7% to a massive $715 billion in 2019.
This implies a greater adoption of Bitcoin and other cryptocurrencies by extension to facilitate cross-border settlement at a cheaper [than the traditional financial institutions] and a much efficient pace.
The largest crypto asset Bitcoin [BTC] shed nearly 85% of its valuation after the 2017 bull run.
The two silver linings in the longest crypto winter will be the launch of the highly anticipated Bakkt and the Securities and Exchange Commission’s [SEC] green light for the Bitcoin exchange-traded fund ETF.
The payment volume chart published by Statista depicts a gradual increase in the online payment giant’s transaction volume for 2018. Considering the estimated remittance value growth for 2019, the trading volume is also expected to rise, owing to PayPal’s extensive user base.
Talking about the traditional payment industry, Mahmoud Mohieldin, Senior Vice-President of the 2030 Development Agenda, United Nations Relations, and Partnerships of the World Bank, stated:
“Even with technological advances, remittances fees remain too high, double the SDG target of 3 percent. Opening up markets to competition and promoting the use of low-cost technologies will ease the burden on poorer customers.”
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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.