Data from Blockchain.com reveals that a huge $ 2 billion Bitcoin (BTC) transaction was processed on Monday evening. Despite the gigantic financial value, the wallet owner paid a fee of 0.00001713 BTC, equivalent to just $ 0.78.
While not knowing what the purpose of this transfer was, or which individual or entity performed it, he clearly demonstrated the enormous potential of financial transactions using cryptocurrencies and blockchain technology.
However, this is not the first case of a transaction of this magnitude being processed with minimal fees. In August 2020, a $ 1 billion Bitcoin transaction was posted with a nominal fee of just $ 4.
Attempts to transfer similar values into traditional fiat markets would simply be futile. Anchored in anachronistic models, the financial ecosystem represents a clear anomaly in the experience of modern instant and broadly inclusive services.
Often processing an international fiat transfer takes between one and four business days and carries a sizable transaction fee of between 1% and 3%. For a $ 2 billion transaction, the associated cost would range from $ 20 to $ 60 million.
Furthermore, unlike Bitcoin, banks and governments have a central influence on the activity of financial infrastructures, and therefore threaten the privacy, autonomy and principles of the free market.
According to BitInfoChart, the average transaction fee on the Bitcoin blockchain is 0.000058 BTC ($ 2.67). This level has been quite consistent over the past couple of months, but previously it hadn’t been hit since the start of the market rally in October 2020.
To better understand the context, the average transaction cost for the second largest cryptocurrency in terms of market cap, Ether (ETH), remains much higher (greater than 770%) at 0.0061 ETH ($ 20.44).
Related: BTC close to $ 46,000 with reserves on exchanges below November 2020 levels
Technical data from Cointelegraph Markets Pro reveals that Bitcoin was back above $ 46,000 on Tuesday after hitting a local low of $ 43,380 on Bitstamp driven by strong volatility.
This bullish sentiment is in line with additional data that Bitcoin reserves on major cryptocurrency exchanges have been hitting lows for several years this week. As with transaction fees, these levels were not seen since the rally began in October 2020.