Hive: $3 Trillion Payment Revenue

in #hive-1679222 years ago

Sometimes we come across numbers that are mind blowing.

Hive offers fast and feeless transactions. This is something that can radically alter the payments world. Quite frankly, this is something that is ripe for disruption. As the leading blockchain in this area, Hive can really make an impact.

We are in the middle of a series the details building a currency. This is a good article to interject so that we can see exactly how bog some of these markets truly are.

Here we are going to focus upon payments, specifically the revenues generated from them.

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Source

Payments = Big Money

Moving money around is a lucrative business.

As stated in other articles, a great portion of the monetary system deals with communications, i.e. digital networks. The largest financial institutions have some of the most robust computer networks in the world. A corporation like Visa is really nothing more than an information technology company. They are in the business of processing data and getting the right information to where it needs to be. There is very little actual currency involved in what they do.

For this reason, cryptocurrency can offer a true solution. Blockchain is a digital network, global in scale. Like Visa, one of the primary roles is to maintain a ledger of all transactions. Hive adds more to the database but this is one of the features at the base layer.

Hundreds of trillions of dollars are sent globally each year. This is enormous business and payments is right at the center of it.

The chart above is from McKinsey and their 2022 Payment Report. For the calendar year 2021, the total revenue from payments was $2.1 trillion. This is just the transaction fees charged by banks and other financial institutions. Essentially, this was the fees associated with using their network.

Want to send money, pay them.

We also see that, according to the forecasts, the payment revenue is expected to top $3 trillion by 2026.

Do we understand how big this really is?

To put it in content, here is a list of the top countries by GDP.

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The forecast of $3.3 trillion would put it as the 5th largest country in the world.

Remember, this is not the total amount transmitted but the revenues they take. There is big money being a gatekeeper. Perhaps now we see why the banks and other money transmitters want to either control or destroy cryptocurrency.

There is a lot of money on the line and this is a major threat.

Hive Solves This

The fees charged are simply for the right to send the money. Each time you swipe your credit card, someone is making money off that transaction. Every step of the way, fees are being levied.

This is how we can get numbers that run into the trillions.

Hive is a decentralized network that has one of the fastest settlement times. This is a point worthy of stressing due to the fact that we are dealing with so much potential.

When we discuss the future value of Hive, do we account for the possibility that, as a payment system, it is faster and less expensive than the existing system. If we are comparing products, Hive is head and shoulders ahead of the rest.

How much does it cost to send money from a Bank of America account in the U.S. to Laos? How about a credit card payment by an Australian made in Bulgaria? What does it cost a merchant in the local mall each time a customer pays with Visa?

In all of these instances, the cost of utilizing Hive is zero. There are no direct fees, either transaction or merchant.

Instead, one needs to have some of the access coin, $HIVE, staked which allows for one to engage with the network.

This is a trillion dollar killer.

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Hive Taking Billions In Revenues

The above chart shows where the growth is projected to come from. Notice the black section of each area which is fees on accounts and overdrafts. Look at the percentages in some of those markets.

Of course, Hive has none of this. Holding a Hive account costs someone nothing. This is not the case in many areas of the world.

Once again, going back to the idea of valuation. What is Hive worth if it is taking billions in revenue away from these institutions. After all, blockchain is, by default, designed for cross-border payments since it doesn't even recognize location. To the blockchain, it is just a transaction from one wallet to another. Where people access it from is of no relevance to the network.

The potential is before us. We already see Hive penetrating countries that are most affected by the fees that are being charged. When we discuss the events in Cuba, Venezuela, Nigeria, and other nations like this, we can see how the Hive payment network is a better option.

Of course, we can add the fact that we also have the Hive Backed Dollar, which eliminated currency risk from the equation, and we gain some insight into how truly disruptive this can be.

How much better off would the population of the world be if the $2 trillion in revenues generated just from payments was in their pockets (wallets) instead of the financial services industry?

This is what a network like Hive can do.

And think of what the value of that will be in terms of market capitalization.


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I already stopped thinking that Hive can replace some form of money / payment outside the blockchain network, if not even some cryptocurrencies like Ethereum, Cardano, Binance or other big projects could imagine us.

I really feel the pinch when I move money across borders via SWIFT trasfers. Especially when one or more intermediary banks are imvolved. Have lost 10% + on all occasions.

I've contemplated using Hive in the past for international money transfers but didn't as I can't connect a wallet to my local bank account. Not for long though a some banks have started easing up on restrictions.

The key is where you are to the point where you can send the payment without the banks.

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Aah I see what you mean.

Just out of curiosity, can't you buy crypto with a credit card and then pay off the credit card from your bank?

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It worked once. I bought some crypto from cex.io and the next time it dodnt work.

This is the explanation I received from the bank when I reached out:

Before this happened I never tried putting funds onto my card from a wallet.

A very nice informative post you have written and nicely presented through charts thanks.

Great introspection within Hive being the perfect medium for payments. I wonder how this can take shape in the real world as not all involved parties might have a Hive wallet. Probably there can be a solution with middleware for such cases that could exchange HIVE/HBD for FIAT.

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As the network gains users, this encouages more wallets and places to accept it. It all feeds into the same pot.

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Hmmm I wonder if financial companies will lobby hard for politicians to regulate and ban crypto. I mean, they don't have anything to lose LOL.

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Considering much of this money is going to banks, I would say we know where they stand and the efforts they are putting forth.

A company like Visa might try to adapt. Banks will try to use their pull with politicians to get what they want.

I have a feeling the move against the exchanges is driven by the banks.

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The volume of transactions would make RCs very scarce. They'd be rented out to generate cash to pay for the infrastructure. I'm not sure how competitive Hive would be if it had to have such a massive throughput. Centralized payment processors do not have to pay for 20-100 nodes to operate in consensus. They are much more efficient in handling a great volume of transactions.

What Hive has to offer is something else, namely, independence and censorship resistance. In that game, Hive is more efficient than PoW chains.

There are ways to keep scaling the chain. It is estimated that we could handle probably 100 million transactions, combined. This is not only financial so we are talking about having to scale a great deal more.

Blocktrades mentioned there are other ways to keep this ball moving on the scaling side.

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I'm sure it can be optimized. But centralized payment processors are also under competitive pressure to optimize.

Sure they are. The difference is there are networks on top of networks. The entire financial system is hodge podge mess.

Plus they still have the fees that are gouging people globally.

It is going to be an interesting race.

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And for large sums there's bureaucracy.

I think it's a good reason but I don't think the middle mans will just take it lying down. I have a feeling that they will be doing things to protect their interest and it can hurt any off-ramps we have. So we need HBD as something people will accept normally too.

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While the banks are focused on Bitcoin, Ethereum and the famous ones Hive presents a bigger threat in relation to transactions.

The potential is there for Hive and it is good that is spreading into the countries you mentioned.

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Hive's path is in the undeveloped countries. That will allow it to fly under the radar and to really have an impact.

Gain a foothold in those types of countries.

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at some point Hive will turn into a big snow ball, compare to other crypto the fees, the distribution, the big holders is so different from the little I know that its cheaper and users do know who are the big holders that could make the project gain trust, eventually governments will come up with their own digital currency but it will be up to the people to decided what to use to transact instead of paying all those fees to the governments, this will take sometime too but I know its already going on hard in Venezuela and El Salvador, two countries that are heavy crypto users, others will come with time, thx for sharing ✌️

These financial gatekeepers are punching really big numbers for building a network. Hive replicates their network but it's more efficient in many aspects. I think it's just a matter of time before they start losing a chunk of these huge numbers to networks like Hive. Networks that can replicate the system in a better way.

Without a doubt. We have to build a powerful base and secondary layers. This is crucial to taking on the existing financial establihsment.

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I have a feeling you could go on and on about how big of a deal this is. lol I get it. The problem is that 1) it makes too much sense, and 2) the legacy system is going to fight tooth and nail to stop it until they figure out a way they can insert themselves into the middle and make their cut.

Until that happens, they are going to use every tool at their disposal, not the least of which will be the media. If and when Hive starts making traction here, the FUD that will be spewed on the airwaves will be almost obscene.

It's like anything else, when you can't win on the facts, you attack the person. In this case, I'm sure they'll go after the witnesses and the DPOS system of governance and probably even try to link the whole JS thing into the mix.

We really need to get that movie out there. Have you heard anything more about that recently?

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Of course they will try to come after Hive. And that is where the test comes in. We have safeguards in place. A money attack, is welcomed.

I havent heard of any updates but I believe there is progress being made.

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