Bitcoin’s value proposition in fund transfers is so far one of the most cost-friendly avenues to send money globally. A recent transaction within its ecosystem recorded a low of 26 cents in fees to transfer $670 million worth of BTC. Given the prevailing market rates in banking and International payment networks, this BTC transaction rate poses quite a threat to the existing financial institutions.
A number of cryptocurrencies have come up since Bitcoin’s launch a decade ago. Some of these projects present better use cases and cheaper rates than BTC but the pioneer crypto has maintained a strong market dominance. According to CoinMarketCap data, Bitcoin’s market share stands at $127 million which translates to 65% of the total cryptocurrency market capitalization.
Some analysts in the space have attributed this success to the coin’s security and liquidity in a volatile and young market.
The latest cost-friendly BTC transfer according to a tweet by one crypto enthusiast (@sunnydecree) suggests that this digital asset may actually compete against bullion markets dynamics favorably;
@PeterSchiff can you send 13 tons of gold for a fee of just $0.26❓
— ⒿⒺⓈⒸⒽⒾⓁⒹ (@JeschildTan) April 2, 2020
This transaction took place on April 1 where an unknown sender transferred 106,857.24571944 BTC to two digital wallets. It, therefore, follows that Bitcoin provides a convenient transaction option compared to Gold as per the analyst views. As it stands, the whole world is uncertain given the Coronavirus pandemic, this situation only makes it harder to transfer a physical asset such as gold whose logistic costs is beyond most bullion market enthusiasts.
Despite Bitcoin’s market dominance, other altcoins are on the rise to displace this number 1 digital asset as of press date. The fruits of these innovations are however yet to be significantly felt within the crypto market given BTC’s popularity. This network’s value proposition in fundamental functions such as hash rates and security are yet to be fully challenged by one comprehensive digital currency ecosystem.