Bitcoin (BTC) will eclipse global payment systems used today within the decade, a report said.
If the current rate of network growth of Bitcoin continues, it will beat Visa, Mastercard, and PayPal as a digital payment medium, according to a forecast by DataLight software startup.
The startup based its estimates in the already far greater number of nodes, average transaction size, and lower fees, among other technical factors.
Bitcoin has approximately 10,000 active nodes while Visa has 119 data centers, MasterCard has 98 and PayPal has 51.
Even though Bitcoin now has fewer users, the company expects they will grow in the future, considering that the cryptocurrency is only ten years in the market. Visa and MasterCard rolled out in the 1950s and 60s while PayPal debuted in 1998.
At present, there are around 25 million Bitcoin wallets, compared with roughly 5.3 billion Visa and MasterCard (credit and debit) in circulation, the report noted.
However, DataLight believes advances in technology will make Bitcoin more attractive to mainstream consumers, which will take it out of its technical niche setting, the report said. Recently, analysts reported that a commonly used indicator signals that the cryptocurrency can surge by nearly 200% and would send its price back to its 2017 highs.
DataLight said that even though currently the cryptocurrency can only process around seven transactions every second compared to Visa’s 65,000, scaling solutions — primarily the Lightning Network — enough time to transform Bitcoin’s utility in the market.
The report also stressed that presently Bitcoin’s payment system is more advanced than conventional global payments and wire transfers.
In the past, tech experts have been optimistic about Bitcoin despite seeing its price nosediving by around 80%. In February, Twitter CEO Jack Dorsey said in an interview that Bitcoin will probably emerge as a native currency of the Internet.