Low transaction fees are one of the attractions of digital currency. And Bitcoin has proven it’s low transaction fees once again as a Bitcoin whale moved $468.5 million worth of Bitcoin (49,756) for just $374.98 on Monday.
Cryptocurrency transaction tracker, Whale Alert revealed the transaction via tweet. According to the tweet, 49,756 BTC was transferred from unknown wallet to unknown wallet by a crypto whale known as ‘Unknown Owner 26’.
The transaction took place within six hours. Also, the wallets are unknown an indication that the transaction must have occurred in over-the-counter (OTC) sales, or maybe they were moved to a hard wallet for security. Also, there is no indication that the coins are headed for any cryptocurrency exchange where it might influence the price of bitcoin.
On the other hand, Whale Alert tracked three more transactions from the same crypto whale ‘Owner 26’. Each transfer was about $450 million and may likely be from a crypto exchange transferring its funds between wallets due to the size of the funds. To support this theory, a twitter user @ LukaC1608 responds to Whale Alert’s tweet asking CZ, the CEO of Binance, “@cz_binance that’s your cold storage, right? RIGHT?”
On the flip side, Bitcoin fee structure still offers more to its users than traditional banking. Transaction fees are structured in such a way that a Bitcoin user has the freedom to set the transaction fee by themselves. If a bitcoin user places a high fee, it acts like a bid and bitcoin miners quickly confirm the transaction. However, if the user selects a low fee, it may cause the transaction to drag.
Equally, when compared to traditional bank transfers such as TransferWise, a major provider of international remittances and alternative to payments via big banks. The crypto whale would have to pay 0.36% transaction fees of $468.5 million, which would result in $1,684,800 transaction fees.
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