RATE Group | Why Comparing Bitcoin with Centralized Systems Based on TPS is Wrong
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Why Comparing Bitcoin with Centralized Systems Based on TPS is Wrong

13 Nov Why Comparing Bitcoin with Centralized Systems Based on TPS is Wrong

Posted at 10:47h in Bitcoin News by

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bitcoin apples and oranges



On the Bitcoin network, whether it is a transaction worth $100 or $1 million, it costs the same miner’s fee to process the payment.

On October 16, a $194 million payment was moved on the Bitcoin network with a mere $0.1 fee nearly instantaneously. Through legacy banking systems, weeks of paperwork, days of settlement system, and a significant load of compliance work is required to clear a payment of that size.

The research of Nic Carter, a Partner at Castle Island Ventures and the co-founder of Coinmetrics.io, found that comparing Bitcoin to other cryptocurrencies and centralized systems like PayPal based on transactions per second (TPS) is inaccurate.

Why Bitcoin Comparison isn’t All That Simple

As shown by the chart below created by Carter, centralized systems like credit card network operators and Bitcoin target a different market. While credit and debit card network operators mostly focus on processing small payments at a large capacity,…

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