Bitcoin vs Visa
Say goodbye to using credit cards.
💡 Daily Reminder: Stay humble, stack sats
Bitcoiners,
Say goodbye to using credit cards.
Learn how a Bitcoin payments company, Strike, just took one step closer to completing its mission of replacing popular credit card networks such as Visa and Mastercard so that you can understand how the Bitcoin network is a superior innovation in payment technology.
The News
Earlier today, news broke that Strike, a payment provider that utilizes the Bitcoin network, raised $80 million in Series B funding.
CEO Jack Mallers stated the funds will partially be used to develop partnerships with the largest retail brands such as Starbucks to provide a cheaper alternative to credit card networks. This past year, Visa's credit payments volume was $2+ trillion and Mastercard's volume was just under $1 trillion. Typically, credit card networks charge merchants an average of 3% of a transaction, which amounts to $30 billion in fees for Visa and Mastercard.
The news is significant because it shows capital is being deployed to obsolete the 3% fee market with bitcoin as the underlying technology, which ultimately puts more money back into the hands of consumers and businesses.
The Technology
Bitcoin is better than any payment network such as Visa because it is open source and can reach final settlement almost instantly at a fraction of a penny.
Being open source means any person or company in the world can use the Bitcoin network to transmit value via bitcoin the asset and freely build applications on top of it. Traditional payment networks are closed source, which means it is hard to transmit value and reach settlement between different networks. Traditional payment networks also do not have a digitally native asset that can transmit value at a fraction of a penny.
We are seeing payments evolve in real-time and I think Visa will be a forgotten name by the end of this decade.
Happy Wednesday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter:Â @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
