The cryptocurrency industry is expanding, and one of the reasons to account for its unrelenting growth are the transaction fees that are generally significantly lower than those in mainstream financial institutions.
As it happens, in a recent transaction, 81,842 Bitcoin (BTC) were transferred at the fee of 3,392 sat or $0.70, taking into account the fee rate of 20.7 sat/vB (sat per virtual byte), as recorded on the Bitcoin ecosystem explorer Mempool on October 26.
Crypto versus banks
Considering the price of Bitcoin at the time of transaction ($20,744), this means that $1.69 billion worth of Bitcoin was transferred for less than a dollar, which is substantially lower than what a traditional bank would charge for such a large transfer.
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It should be noted that Bitcoin as a decentralized network does not have transaction fees per se, as its transactions are nearly instant. However, these transactions do need to be verified and recorded in a ‘block’ on the Bitcoin chain before the amount transferred can be spent.
These blocks are mined by Bitcoin miners who consume their time and computing power for securing the network, so whenever a block is found, new Bitcoins are generated and transactions verified.
In this case, at this point it is still unclear whether the transaction was sent to a cold wallet or crypto exchange.
Bitcoin price analysis
As things stand, Bitcoin is currently changing hands at the price of $20,610, which is a slight decline of 0.22% across the day, but still a 7.30% increase compared to previous seven days, according to the data retrieved by Finbold on October 27.
The maiden asset’s weekly strengthening follows the bullish shift in activity and sentiments on the general crypto market, which has briefly sent its capitalization over the $1 trillion mark after six weeks of dormancy.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
