While most investors are focused solely on Bitcoin’s (BTC) price, prominent crypto analyst Willy Woo thinks outside the box. In one of his most recent analyses, Woo shared a different perspective on Bitcoin, which he views as a payments company rather than a currency.
He concluded that as a payments company, Bitcoin was actually very successful in 2018, despite crashing from $20,000 to nearly $3,000. In fact, if Bitcoin were a payments company, it would have brought in close to $300 million in sales (fees paid to miners) last year.
If Bitcoin was a payments company this would be its sales…
Total fees paid to miners by year:
2018: $296m pic.twitter.com/ccGDkpZsNK
— Willy Woo (@woonomic) February 16, 2019
Bitcoin Would Be a Massively Successful Payments Company
Not only would Bitcoin secure massive sales in 2018, but its profit would have increased exponentially year after year since its inception in 2008. The total fees paid to miners since 2010 would be over $1.5 billion, which signifies a substantially profitable payments company.
Woo’s interesting perspective on Bitcoin generated a lot of feedback from notable members in the crypto industry, one of whom was Changpeng “CZ” Zhao, the CEO of Binance. CZ noted that this was an interesting way to look at Bitcoin, adding that it achieved such success with zero marketing budget.
Crypto enthusiast Steven Budgen also replied:
No marketing budget required, network effects grow stronger the more popular the network becomes. I expect those numbers to surpass a billion+ in the next couple of years
— Steven Budgen (@Steven_Budgen84) February 17, 2019
An interesting comparison of Bitcoin’s revenue (if it was a payments company) is to compare it with some of today’s largest and most successful companies like Amazon, Tesla Motors, and FedEx. These established companies started off really slow in their first 5 years and are now billion-dollar companies today.
Therefore, in regards to Woo’s analysis, it appears Bitcoin is going the same route as these successful companies and may soon generate billions of dollars in fees paid to miners.
Will Bitcoin’s Price Skyrocket Soon?
Another interesting insight from Woo’s analysis is that in 2018, the fees paid to miners declined from what they were in 2017, which could signal we’re in for a Bitcoin price rise for 2019 and the years to come.
The last time Bitcoin mining fees declined year after year (from 2014 to 2015), the following year Bitcoin’s “revenue” went up 6x, teeing up for a 40x run the year after that in 2017.
Therefore, Woo’s latest analysis could possibly be used as an indicator that Bitcoin’s price will rise in 2019. We’ll just have to wait and see.
What do you think of Willy Woo’s different perspective and latest analysis of Bitcoin? Will 2019 see a rise in fees paid to miners? Let us know what you think in the comment section below.