How Much Bitcoin Whales Pay for Its Transactions?
November 25, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
Once again, Bitcoin shows that it is number one when it comes to moving large amounts of money from A to B and paying a very small amount of fees for it.
On November 24, Wallet sent approximately 44,000 Bitcoins worth $310 million. The amount itself is not the only thing notable, but also the fees paid for the transaction. These were namely at 0.00004551 BTC, which corresponds to about $0.32.
Every transaction has to be paid. The fees go directly to the miners who also confirmed the transaction. Normally miners prioritize transactions for which higher fees are paid. How much this fee will cost depending on various factors. On the one hand, this depends on what others pay. In high demand, this can even be up to $1. In rare cases, when the network is heavily loaded, it can range from $5 to $10 required to validate the block. In the last few weeks, however, the network has been running very efficiently, which is why average fees were well below $1.
Such a transaction shows that Bitcoin is the cheapest way to move such money. In addition, the BTC allows for instant and secure payments that can not be frozen or reversed, which can be the case with fiat-based payment methods. In addition, Fiat currencies are centralized and can be reversed, are often not immediately available and the fees are very expensive for such quantities.
For example, fees of $310 million include fees ranging from 0.5 percent to 2 percent. That’s $1.55 million to $6.2 million. In comparison, the percentage in BTC from the Wallet, which is 0.00000010327 percent.
As you can see, the whales have been saving millions of dollars in these transactions, which shows once again that the Bitcoin network is much more efficient and cheaper compared to Fiat payment methods.
Author: Marko Vidrih
