Crypto transactions are still an exceedingly small portion of total remittances. The bitcoin and Ethereum blockchain process 7 and 15 transactions per second (tps), respectively. To understand how these big crypto names are eclipsed by the scales of existing payment houses, let’s have a look at Visa, which processes about 1,700 tps on average and has a capacity of 24,000 tps.
Ethereum is addressing the scalability of its network by introducing a split blockchain called “sharding”. Other cryptos, such as Ripple, offer a comparative transaction speed on Visa’s average figure with 1,500tps. These altcoin projects show a route to where current or upcoming cryptos can rival Visa et al.
A strong headwind for the crypto market, most notably bitcoin, can be the increased recognition of its energy usage. Bitcoin has a large carbon footprint, with only 39% of mining energy currently drawn from carbon-neutral sources.
This may be part of the reason that investor sentiment for Bitcoin is much weaker than for Bitcoin Cash, which uses far less energy. This can be seen on the Acuity Trading Dashboard.