Small Bitcoin Fee: Only 10 Cents for $194 Million on the Bitcoin Network

Small bitcoin Fee

According to sources, on October 16th, a Bitcoin user managed to transfer 29,999 BTC with a transaction fee of only $0.10. This amount of Bitcoin equates to $194 million, and a transaction of this magnitude would usually incur bank fees in the tens of thousands of dollars. With such a small Bitcoin fee for such a large transaction, will we see widespread adoption for big over-sea payments?

Small Bitcoin Fee

Bitcoin transactions are a funny one. Often, complaints roll in by the dozen about the cost of transaction fees because to clear a transaction on such a high-volume network means paying for expensive miners.

But this transaction shows the potential of the Bitcoin blockchain to perform cross-border payments cost-efficiently and effectively.

Expensive Claims

Claims have risen before about transactions on the Bitcoin network costing $60. As recently as October 14th, cryptocurrency critic Nouriel Roubini, economist and professor at Stern School, made such a statement.

However, his claim was met with fire:

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“BTC fees are less than $0.10, easily verifiable. If you value truth, you’d provide a public correction.”

So if this transaction did indeed only cost the sender a small Bitcoin fee of $0.10, then it throws regular banks into chaos.

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Regular Banking Fees

To put it in perspective, the cheapest platforms available to transfer fiat currency abroad still ask for a percentage of the cost, and that percentage is far greater than $0.10.

For example, on a platform like Transferwise, to send over $1 million, it costs over $7,500 in transaction fees.

Percentage-wise, this figure is less than 1% of $1 million, so $7,500 is considered cheap for a transfer that large. However, using the Bitcoin network at $0.10 for the same transaction is astronomically (and literally) cheaper than $7,500!

Scalability

The biggest issue with the Bitcoin network and transactions has been scalability. But this is an issue that is being resolved. Bitcoin’s Lightning network is offering the ability of on-chain and second-layer solutions. This means the network, in effect, can process small payments faster.

But at the scale of $194 million, massive firms and investors will no doubt prefer the Bitcoin network for over-seas trading, would they not? Why would you want to pay hundreds of thousands of dollars in bank fees when you can pay a small Bitcoin fee of 10 cents only?

I know what I’d choose. What about you?

Featured Image: Depositphotos/© SectoR_2010

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