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$ 2 billion BTC transaction cost an incredibly low fee

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According to the Blockchain.com explorer, a transfer of Bitcoin in the recalculated amount of 2 billion US dollars took place on the BTC network on Monday evening as part of one transaction. Its contracting authority paid a fee of only 0.00001713 BTC for it, which at the time amounted to USD 0.78.

Conversion 44598.429 BTC in one transaction, it is not the first or last huge BTC transaction in which it has been proven that BTC can be a very effective and inexpensive means of shifting value. This transaction took place very quickly and at minimal cost, which is in stark contrast to the fees that would have to be incurred in the case of current banking transactions, which would undoubtedly take longer. Likewise, BTC highlighted its better starting position in this transaction compared to the often mentioned one gold, because the physical transfer of gold worth $ 2 billion would be logistically and financially extremely demanding.

This is not the first transaction of this type

In August 2020, a similar transaction took place in value $ 1 billion. At that time, a conversion fee was paid for it $ 4 because the BTC network was a bit more congested than it is today. However, with such huge amounts, even the fees in BTC’s record amounts (above $ 50) would still be negligible.

How it would be in the fiat world

The Cointelegraph portal warns that if you wanted to transfer $ 2 billion in the Fiat (within the banking system), you would pay a hefty transaction fee somewhere between one and three percent. That would be the case for a transaction on Monday $ 20 million to $ 60 million. Besides, you’d wait one to four days before the payment passes.

We should not forget the bureaucracy and supervision of banking institutions over such types of transactions. BTC doesn’t solve that. On the other hand, the maker of a BTC transaction must be careful not to make a mistake in the transaction. Theoretically, he could wash away a large sum of money forever without the chance that someone would be able to correct a faulty transaction.

What are the average transactions

According to current BitInfoChart data, the average price for a BTC network fee is around 0.000058 BTC, which represents $ 2.67 (this fee does not depend on the value of the transaction). The average fee for cryptocurrency ETH is incomparably higher – up to $ 20.44.

However, even BTC’s current low fees for on-chain transactions are not sustainable in the long run if BTC is to become regular currency. No one buys coffee for BTC if they have to pay $ 3 or more for a transaction.

This problem is to be solved by using a Lightning Network (LN) built on the second BTC layer. Recent data suggest that the adoption of LN, which allows BTC transactions at minimal cost and is starting to accelerate almost immediately. At ETH, the transition to Proof of Stake and especially the completion of the so-called sharding should solve the high fees.

 

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