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I've seen this comparison a lot but I have no idea what the significance is. Why does this matter?

by underyx 10y ago

lordnacho 10y ago
Probably because WU is a money transmission network, so somewhat comparable to what Bitcoin does.
- underyx 10y ago
  But doesn't market cap mean two entirely different things for a company and a currency?
  - throwawaysocks 10y ago
    Yes. A more meaningful comparison would be the market cap of various bitcoin exchanges; the flaws with that comparison are pretty much the same as the flaws with comparing bitcoin to WU in general.
  - dantudor 10y ago
    Bitcoin transaction volume in USD for the last 24 hours was $ 224 million. Not sure how much WU turnover in transaction value a day...
    - underyx 10y ago
      The best data I could find on this is in their 2015 annual report, which says they've had $81.6 billion in consumer-to-consumer transfers[0], which made up 79.21% of their revenue[1], so I guess we can estimate an annual turnover of $103 billion, which comes out to $282 million per day over the year of 2015. [0]: http://s1.q4cdn.com/568883301/files/doc_financials/2015Annual/2015-Annual-Report.pdf http://s1.q4cdn.com/568883301/files/doc_financials/2015Annua... - page 66 [1]: http://s1.q4cdn.com/568883301/files/doc_financials/2015Annual/2015-Annual-Report.pdf http://s1.q4cdn.com/568883301/files/doc_financials/2015Annua... - pages 59 & 64
      - throwawaysocks 10y ago
        Most of their revenue = Most of their volume is questionable. Do you have any sense for whether revenue and vole are roughly correlated here?
        underyx 10y ago
        Nope, I'd assume that B2B has lower fees/margins, so the actual daily volume should be higher than my calculation said above. Still, it should be enough to establish that WU is still a fair bit ahead of BTC.
    - bdcravens 10y ago
      Keep in mind though that anyone with reason, could easily fake a lot of volume: 2 address, starting amount, swap back and forth until you eat up the whole thing with fees.
    - kalleboo 10y ago
      Doesn't that by necessity include all the change as well? So it's a misleading number if you want to take it for "this is how much people are paying each other with bitcoin"
retube 10y ago
I've no idea. Is utterly meaningless. A more meaningful comparison would be "what $ value has been transferred using each network over the last 12 months"

I've seen this comparison a lot but I have no idea what the significance is. Why does this matter?

by underyx 10y ago

I've seen this comparison a lot but I have no idea what the significance is. Why does this matter?

lordnacho 10y ago

Probably because WU is a money transmission network, so somewhat comparable to what Bitcoin does.

underyx 10y ago
But doesn't market cap mean two entirely different things for a company and a currency?
- throwawaysocks 10y ago
  Yes. A more meaningful comparison would be the market cap of various bitcoin exchanges; the flaws with that comparison are pretty much the same as the flaws with comparing bitcoin to WU in general.
- dantudor 10y ago
  Bitcoin transaction volume in USD for the last 24 hours was $ 224 million. Not sure how much WU turnover in transaction value a day...
  - underyx 10y ago
    The best data I could find on this is in their 2015 annual report, which says they've had $81.6 billion in consumer-to-consumer transfers[0], which made up 79.21% of their revenue[1], so I guess we can estimate an annual turnover of $103 billion, which comes out to $282 million per day over the year of 2015. [0]: http://s1.q4cdn.com/568883301/files/doc_financials/2015Annual/2015-Annual-Report.pdf http://s1.q4cdn.com/568883301/files/doc_financials/2015Annua... - page 66 [1]: http://s1.q4cdn.com/568883301/files/doc_financials/2015Annual/2015-Annual-Report.pdf http://s1.q4cdn.com/568883301/files/doc_financials/2015Annua... - pages 59 & 64
    - throwawaysocks 10y ago
      Most of their revenue = Most of their volume is questionable. Do you have any sense for whether revenue and vole are roughly correlated here?
      - underyx 10y ago
        Nope, I'd assume that B2B has lower fees/margins, so the actual daily volume should be higher than my calculation said above. Still, it should be enough to establish that WU is still a fair bit ahead of BTC.
  - bdcravens 10y ago
    Keep in mind though that anyone with reason, could easily fake a lot of volume: 2 address, starting amount, swap back and forth until you eat up the whole thing with fees.
  - kalleboo 10y ago
    Doesn't that by necessity include all the change as well? So it's a misleading number if you want to take it for "this is how much people are paying each other with bitcoin"

retube 10y ago

I've no idea. Is utterly meaningless. A more meaningful comparison would be "what $ value has been transferred using each network over the last 12 months"