In the recent edition of Off The Chain, founder of Morgan Creek Digital Assets – Anthony Pompliano said that Bitcoin (BTC) could soon start making a move to the ecosystems of centralized payments.
He said that the blockchain itself needs to be spotlighted, as it is named “the most secure payment layer in the world,” instead of just Bitcoin (BTC) itself. Pomp also makes it clear that it is very difficult to value payment ecosystems, due to the fact that network value concept is usually abstract and still developing, he did all he could to draw attention to the strong, but lesser-known basic measures of Bitcoin.
He even implied that he would not be surprised if Bitcoin (BTC) started making a move on MasterCard and Visa. This move might only be made more noticeable as scaling solutions such as the Lightning Network, while the fundamentals of Bitcoin (BTC) continue to beat that of its altcoin rivals.
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When Facebook had plans of launching their own crypto, Pomp had said: “This would be a direct competitor to Visa and Mastercard, but it is more likely to happen than you may think. Facebook has billions of users and tens of millions of merchants. This gives the company a leg up on competitors as they bootstrap the network effects needed to lock in both sides of a marketplace.”
MasterCard moves about $11 billion daily according to its public records. Bitcoin, on the other hand, has recently maintained an average daily transfer value of about $8 billion – in fact, the platform cleared as much in the past 24 hours in spite of the ongoing turmoil.
Overall, MasterCard has processed transactions worth about $4.4 trillion since the beginning of 2018. These statistics are not available for Bitcoin but extrapolating from daily transaction values would give an average annual figure of $3 trillion.
Visa, on the other hand, is out of Bitcoin’s sight for now. The network is the largest money transfer platform in the world with an average daily transfer value of about $30 billion and an annual transfer value of about $11 trillion.
From the point of view of a revenue multiple, Bitcoin is more undervalued than both MasterCard and Visa. MasterCard and Visa are the two most common payment platforms compared to Bitcoin.
He emphasized that although Bitcoin (BTC) is not supposed to be valued by revenue multiple, this gives context to the underlying performance of blockchain and the pseudo-inherent value.