Bitcoin Surpasses PayPal's Market Cap - “Bitcoin Fulfilling Our Original Vision” Says Ex-Paypal COO
PayPal aims to make digital transactions easy, fast and secure. Although PayPal has gained a lot of acceptance in the mainstream world, people in the cryptocurrency scene are generally not the biggest fans of paypal - and that's because cryptocurrency is basically the next-generation paypal.
Cryptocurrency is also fast, but it's much more secure and offers only very minimal transaction fees.
Now, Bitcoin has just surpassed an important milestone:
Bitcoin's market cap has just surpassed $70 Billion - It has now overtaken PayPal's market cap!
As you can see from the pictures below, PayPal's market cap is valued at 70.18 billion, while Bitcoin's market cap is now at 72 billion.
The real "Flippening" ?
A few months ago, the cryptocurrency world was eagerly awaiting "the flippening" - the moment when Ethereum's market cap would surpass that of Bitcoin.
This would mean that Ethereum would have replaced the original cryptocurrency Bitcoin as the most valuable diigital currency - for the first time ever.
But that didn't happen, and Bitcoin significantly separated itself from Ethereum's market cap after it started to surge in march 2017.
Now, people are calling Bitcoin overtaking PayPal's market cap the "real flippening".
It represents that cryptocurrency has finally achieved a certain level of mass adaptation, and that it was able to overtake its "rival" PayPal, who has always been very adamant about not supporting Bitcoin.
PayPal market cap = half of the whole cryptocurrency market
Bitcoin still remains dominant in the cryptocurrency market, meaning that it is accountable for over 50% of the total cryptocurrency market cap. In return, this means that PayPal's market cap is actually only half as much as the whole cryptocurrency market cap combined!
But still, Bitcoin hasn't surpassed PayPal completely...
Although Bitcoin's total value might have surpassed that of PayPal, the cryptocurrency world still lacks usability. It is still way too difficult and complicated to actually use your crytpo assets as real world payments.
While the bitcoin network has managed about 47 million transactions in the first 2 quarters of the year (260,000 transactions per day). PayPal fielded about 3.5 billion transactions during the same time span - almost 100 times as many.
Cryptocurrency is "fulfilling PayPal's original vision"
David Sacks has been COO of PayPal 15 years ago and has since been an influential Silicon Valley investor.
In a recent Interview with CNBC, he stated that cryptocurrencies are now fulfilling the original vision that PayPal had when the service established in the 1990's.
“For those of us who lived through the dot-com era, this feels reminiscent. You have some of the same speculative excess and random enrichment. But you can also feel that something revolutionary is happening. Money is being made programmable. That's a fundamental change with implications we can still barely see.”
"Bitcoin is fulfilling PayPal's original vision to create "the new world currency."
A payment is just a credit to one account and a debit to another. That's a database entry. We believed that, if we could get enough people to participate, money would never need to leave the system. PayPal could become the database of money.
We added features like interest and debit cards so you'd never have to withdraw funds to the legacy banking system. When we got acquired by eBay, that project kind of stopped.
But cryptocurrencies like bitcoin are now fulfilling that original vision. They are doing it in a decentralized way (with a decentralized database called the blockchain) whereas PayPal tried to do it in a centralized way.
This statement is a big deal, especially since PayPal has been quite reluctant and negative about cryptocurrencies.
And now hearing that one of their original visions was to create a database of money, a system where people didn't have to rely on traditional banking systems anymore is quite interesting.
Like stated above, PayPal tried to achieve this in a centralized way, but stopped after being acquired by eBay.
Cryptocurrencies are now following through with the same objective in a decentralized way and through Blockchain Technology!