Tue. Sep 26th, 2023
    Digital Gold Overtakes Visa: Bitcoin’s Growing Transaction Volume

    Bitcoin has achieved an impressive milestone by surpassing Visa’s annual transaction volume. A decentralized network, Bitcoin’s achievement is noteworthy considering it has not attained the global scale of Visa in terms of usage. However, it is important to delve into the nuances to fully understand the significance of this accomplishment.

    The term “transaction volume” can be misleading when it comes to Bitcoin. A substantial portion of Bitcoin’s network activity in the past year has come from Ordinals, a protocol that enables unique identifiers to be assigned to satoshis (the smallest unit of Bitcoin) in the blockchain. This protocol facilitates high-frequency transactions, allowing for additional data such as images to be included. Although the sheer volume of transactions is impressive, it does not necessarily indicate widespread retail use or adoption of Bitcoin.

    Comparing Visa and cryptocurrency networks like Bitcoin in terms of transactions is tricky due to their fundamental differences. Visa is a centralized payment system that has been refined over decades for consumer transactions. On the other hand, Bitcoin is a decentralized network where transactions can range from a simple coffee purchase to a multimillion-dollar asset transfer. Each has its own rules, limitations, and use cases.

    Nevertheless, Bitcoin surpassing Visa in transaction volume is a significant milestone. It underscores the growing influence of decentralized networks and raises questions about the future of the financial landscape. Could decentralized networks eventually replace centralized systems, rendering them obsolete?

    However, the full adoption of decentralized payments is not progressing as smoothly as crypto enthusiasts might anticipate. El Salvador’s recent experiment with Bitcoin as legal tender has highlighted various weaknesses and issues faced by the general population when interacting with digital payments.

    In conclusion, Bitcoin’s achievement of surpassing Visa’s annual transaction volume is a noteworthy moment. It signifies the increasing prominence of decentralized networks and prompts contemplation on the future of financial systems. However, challenges remain, and further improvements are needed for seamless adoption of decentralized payments.

    – Will Clemente – Twitter (@WClementeIII)
    – Arman Shirinyan – Original Article