- A 47,000 BTC transaction (worth over $400 million) cost only $1.46 in fees.
A Bitcoin whale transferred over $400 million of the popular cryptocurrency for only $1.46 in network fees.
The fee for the $400 million transactions was only 0.00016080 BTC ($1.46). As reported by The Crypto Associate, one of the largest Bitcoin transactions, valued at $1 billion, cost only $0.68 in transaction fees.
Cryptocurrencies like Bitcoin charge network fees for each transaction. Bitcoin transaction fees are determined by the size of the transaction. Bitcoin fees are calculated on a per-byte scale, the greater the transaction memory size, the greater the fees. In addition, to the size of the transaction, Bitcoin fees increase as Bitcoin network congestion increases, evident by the spikes following the bull-run in 2017.
While Bitcoin fees are among the highest of any cryptocurrency, they are still far lower than traditional banking fees.
Banks were the most expensive remittance channels, charging an average fee of 11 percent in the first quarter of 2019World Bank
According to the World Bank banks charged an average of 11% for international transactions. On this $423 million transaction, the transfer would’ve cost over $46 million, far more than the $1.46 the transaction cost.
Low transaction fees continue to be an area of interest as cryptocurrencies and blockchain technology begin to draw in institutional interest. Utilizing Distributed-Ledger Technology (DLT) will allow banks to settle payments quicker and cost-efficiently.
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