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Yesterday, an unnamed wallet took advantage of Bitcoin’s low-fee blockchain with a $2 billion transaction.
Block data from Blockchain.com reveals that a colossal Bitcoin (BTC) transaction worth $2 billion was processed on Monday night. Despite the enormous financial value, the unknown wallet holder only paid 0.00001713 BTC fees equivalent to $0.78.
Although it is unclear what the objective of this transfer was, or who or what entity carried it out, it has clearly demonstrated the huge potential of financial transactions leveraging crypto and blockchain technologies.
However, this is not the first time a transaction of this magnitude has occurred with such little fees. In August 2020, a Bitcoin transaction worth $1 billion was recorded for a charge of only $4.
Attempts to move this amount of money in regular fiat markets would be useless. The financial ecosystem, anchored to antiquated models, presents as a glaring outlier to the instantaneous, generally inclusive, modern information services experience.
An overseas fiat transfer typically takes one to four working days to complete and involves a substantial transaction cost of 1%–3%. This would cost between $20 million and $60 million for a deal worth $2 billion.
In addition, unlike Bitcoin, banks and governments wield significant control over the operation of financial infrastructures, posing a danger to the privacy, autonomy, and ideals of a free market.
The average transaction cost on Bitcoin’s base-layer blockchain is 0.000058 BTC ($2.67), according to BitInfoChart. This has been a consistent floor level across the last two months but was not been printed before that since the beginning of the market’s bullish surge in October 2020.
In comparison, the average transaction cost for Ether (ETH), the second-largest crypto by market value, remains several multiples (770 percent) higher at 0.0061 ETH ($20.44).
According to Cointelegraph Markets Pro technical data, Bitcoin overcame a fight to restore $46,000 on Tuesday morning after reaching price lows of $43,380 on Bitstamp due to significant market volatility.
This positive mindset is consistent with another data point: Bitcoin reserves on major cryptocurrency exchanges have reached new multi-year lows this week — similar to transaction costs — levels not seen since the start of the bullish rise in October 2020.