One of the biggest advantages of bitcoin is that you can send value for a pittance compared to what banks charge. In the past 24 hours, two large bitcoin transactions have been sent by so-called “whales.” These are parties with large quantities of bitcoin.
Another advantage: no third party such as a government or a bank is involved that could have influenced these transactions. Let alone that they were able to stop these transactions.
107,848 bitcoin were just transferred for a 0.02 bitcoin fee.
That’s $ 900,000,000 transfered for $ 166.
No government, bank or third party had to verify the transactions, nor could they have stopped them if they wanted to.
The true power of bitcoin. ?
– Rhythm (@Rhythmtrader) October 14, 2019
112,027 BTC ($ 933,000,000 USD) transferred in a single transaction for the price of a cup of coffee (Tx fee = $ 3.89). #bitcoinhttps://t.co/7zFzSRItFf
– Nejc Kodrič (@nejc_kodric) October 14, 2019
What is particularly striking are the low transaction costs. These are totally disproportionate to the amount sent, even for bitcoin terms this is remarkable. The first transaction contained 107,848 bitcoin, which is approximately 809 million euros. For this 0.02 bitcoin transaction costs have been withheld, or 150 euros. It can sometimes be that simple. The sender of the second transaction of comparable value paid even less in transaction costs. 112,027 bitcoins were sent for only 3.53 euros.
Not comparable with regular banks
We do not know whether these transactions are cross-border, but that actually does not matter to bitcoin. Whether you send bitcoins to your neighbor or to Iran, the transaction costs are the same. What we can say with certainty is that transactions of this size would cost much more via the normal banking network. A transaction such as this should also cover several disks. Multiple third parties then earn from the transaction and all of these parties also know about this transaction. Moreover, this could just take days.
In that regard, bitcoin has at least these two lines in front of the banks: speed and costs. This is exactly what Satoshi Nakamoto had in mind when he designed bitcoin: international financial freedom.
Just as the previous generation of internet banking could not have imagined, bitcoin represents a turnaround in how we deal with value. And how that value is traded between people and companies.
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