Bitcoin has received a lot of criticism for its “inappropriate” as a payment mechanism, but in terms of low fee transfers, Bitcoin is the king compared to the fees charged by traditional remittance companies.
Owner 26 transfers the bitcoin worth $468.5 million, how much is the handling fee?
Bitcoin transaction tracking robot Whale Alert said on Twitter on Monday that a bitcoin whale named "Unknown Owner 26" transferred $468.5 million worth of bitcoin (about 49,756 bitcoins) for $374.98.
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While this shift in scale often occurs in the world of passwords, it is worth noting that such transfers do not require the provision of personally identifiable information or registration with local and international financial regulators.
If Owner 26 chooses to send money via Western Union, TransferWise or a traditional banking institution, the cost will be much higher.
Bitcoin beats competitors
The Next Web did some research on the cost of Bitcoin and found that users who want to transfer $1 million worth of Bitcoin through TransferWise still have to pay a large fee. TransferWise is the main provider of international remittances and an alternative to remittances through large banks.
With TransferWise, the sender will be charged a fee of 0.36%. Applying this rate to $468.5 million in remittances will result in the sender paying $1,684,800!
Owner 26 pays more for Bitcoin transactions of a similar size. For example, on May 1, a $212 million transfer cost only $3.93. The huge difference in fees may be attributed to the $212 million transaction using the Segregated Witness (SegWit) address for the transfer.
SegWit has expanded Bitcoin's "block size limit" from 1MB to 4MB, with the result that miners can package more transactions in each block. Therefore, more transactions can be confirmed at the same time. SegWit users pay less and trade faster.
Whale Alert also tracked three other transactions from Owner 26, each worth about $450 million. Given that the size of each transaction is almost the same, it seems that this is a cryptocurrency exchange that is transferring funds between wallets.