Why Bitcoin’s Lightning Network is Beating Visa and Mastercard
According to recent data from Glassnode, the Lightning Network associated with Bitcoin (BTC) is much cheaper to use compared to traditional payment networks.
The median fee rate for sending value across the Lightning Network is only 0.0029%, which is 1,000 times cheaper than the cost of using payment processors such as Visa and Mastercard.
James Check, a Glassnode analyst, told Cointelegraph that the current median fee rate is 3,000 Satoshis per 1 BTC, which is equivalent to $0.84 for sending $28,800 worth of value.
READ MORE: Recession Risk: How Will Major Economies Respond?
This rate is significantly lower than that charged by major credit card companies. The Lightning Network was proposed as a way to make Bitcoin a more effective payment method, and the data shows that it is fast and low-cost.
However, the network’s throughput could be questioned for payments above $1,000.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
