Why bitcoin poses a huge challenge for Visa

Contrary to popular belief, the costs to compete with the so-called established behemoths—ahem Visa—are within any bitcoin miner or company’s reach.

The current perception is modest sized companies will find it difficult to compete with financial services giants like Visa, which has impregnable technological resources. In response to a tweet that “it would take multi terabyte blocks to get to Visa levels on 1st layer,” bitcoin blogger Tetsu bigstone Oishi did the math, and pointed out that “the Visa capacity is 50,000 tx/s.” This, he said, is 7,142 times bigger than bitcoin, “so we need 7GB block. Exactly 1 TB/day.”

Terabyte, of course, is often associated with expensive storage. But as the lot at CoinGeek pointed out, mega and fast storage doesn’t need to be expensive—if people know where to get it.

According to CoinGeek’s calculation, “bitcoin can not only challenge Visa for under $20 million PA; at only $20,000 each node to a miner, it even makes money.”