A Bitcoin BTC/USD transaction worth nearly $200 million was accomplished by paying a fraction in fees, reaffirming the cost-effectiveness of blockchain technology.
What happened: The transaction, originally broadcast on the Bitcoin network on Friday, shows 2000.05830161 BTC valued at $197.63 million, requiring just $1.89 in fees paid to miners, according to blockchain.com.
According to BitInfoChart, the average transaction fee on the Bitcoin blockchain was 0.000014 BTC, worth $1.42, declining sharply over the last week.
It was not immediately clear who initiated the transaction and what the purpose was. However, transfers of even bigger scales have been executed on Bitcoin previously, costing a penny.
In May 2024, a transfer of over a billion worth of Bitcoin cost only $7.30 in transaction fees.
Why It Matters: Such high-value transactions usually cost an order of magnitude more when done through the fiat financial system.
International cryptocurrency money transfers were found to be 96% cheaper than the legacy process of sending money abroad, an earlier report from Coinbase said.
Wells Fargo, one of America's biggest banks, charges a fee to send most wires, starting at $25. In some cases, a receiving fee of $15 is also levied.
Apart from the cost advantages, cryptocurrency transfers are also processed instantly, while international wire transfers could take days depending on the recipient's country.
Price Action: At the time of writing, Bitcoin BTC/USD was exchanging hands at $99,288.08, down 5.02% in the last 24 hours, according to data from Benzinga Pro.
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