30k ($194M) Bitcoin Transaction for $.10 Fee Reveals Blockchain Cost Saving Potential
Bitcoin Transaction Highlights Incredible Potential of the Blockchain
Among the chief reasons that cryptocurrency technology continues its mass adoption into the public sector is the potential for transactions on the blockchain to be conducted with minimal fees and in record-setting times and efficiencies. This point was always relatively theoretical, with proponents outlining that the lack of third-party intervention means that banks that would traditionally take a chunk out of a transaction are not a part of the transacting equation.
But this past week saw the realization of an incredible example of the power of the blockchain to maximize efficiency and minimize prices associated with large transactions. According to numerous sources, a transaction involving 30,000 Bitcoins—just over USD $194 million—was moved from one wallet to another with a transaction fee of only ten cents.
Fortunately for the mass adoption of cryptocurrencies and blockchain technology, this transaction fee rate is nothing compared to the fees taken out of transactions at major banks and banking platforms in the traditional, fiat sector. PayPal, for example, charges around 2.9% plus 30 cents per sale alone. Fees are even worse at some traditional banks, many charging significant fees on every withdrawal and transfer on any given transaction.
The most recent example in a long line of exemplifications of how Bitcoin and the blockchain could change the nature of the financial sector, this transaction serves to cement the concept in the minds of uninvolved investors that Bitcoin just might be the way of the future.
Because of the anonymous nature of cryptocurrencies, it should come as no surprise that this transaction has not yet had its perpetrators revealed to the general public. It is unlikely that any amount of reporting or journalistic detective work would even help to unmask the person or people behind this massive moving of coin—and this is a major selling point for some holders of Bitcoin.
Just yesterday, some anonymous person on the blockchain moved a massive 30,000 BTC from one wallet to another, paying a transaction fee of only 10 cents on the entire transaction. This means that the percentage of the overall transaction charged in the fee was far, far less than even a tenth of a percentage point. This is big news.
The transaction happened on Block 545911, when the total number of Bitcoin was sent to two separate addresses, the transaction having triggered a fee of only .00001464 Bitcoin, or USD $.10.
A Big Selling Point
Crypto Twitter personality Joseph Young released a tweet about the massive transaction, speculating that traditional banks would charge “at least” USD $7,500 in order to process just USD $1 million, which is a total transaction amount far less than the USD $194 million transferred in this monster transaction. Responding to a professor’s critique that Bitcoin has nothing to offer the financial world that it currently not available, he outlined that these kinds of fees are just not attainable in the traditional economic and financial sectors, where massive transaction fees are the norm.
This transaction is not out of the ordinary, at least where fees are concerned. According to analysts, Bitcoin transaction fees have been relatively stable, although the fee can change slightly dependent on a variety of factors associated with mining interest and the block upon which the transaction was tracked and conducted.
In any case, the ability of the Bitcoin blockchain to move major amounts of capital without charging the exuberant amounts that banks often charge continues to push more and more people over to the system. Additionally, this example illustrate the kind of wealth management and transacting efficiency that the crypto space will need to draw large institutional investors who have billions to move.