Bitcoin and cryptocurrencies are often derided for their inadequacies compared to the giant traditional payment systems Visa, Mastercard, and PayPal, but an eventual challenge from bitcoin and crypto to the incumbents is not impossible, according to one tech analyst.
The bitcoin price, which peaked at near $20,000 in December 2017 and has been falling steadily since, is rarely considered related to bitcoin's use as a mainstream means of payment and has risen over the last few years as a store of value, with speculators hoping to cash in on future price rises.
But as the bitcoin network and the cryptocurrency user experience improves, the threat bitcoin poses to traditional payment networks should not be ignored, MoffettNathanson analyst Lisa Ellis wrote in a note to clients.
"Why would I ever buy coffee with bitcoin?" Ellis said, first reported by financial newswire Bloomberg. But it could eventually happen, "as ludicrous as it may sound."
In the developed world there is currently little benefit to accepting bitcoin or other cryptocurrenc
The networks that Visa and Mastercard use process thousands of transactions per second, with the capacity to process far more. In comparison, the bitcoin network takes around 10 minutes to confirm a single transaction while ethereum needs some 15 seconds.