October- 17, 2018 | AtoZMarkets
The media has recently reported that a Bitcoin trader moved yesterday 29,999 BTC transaction -$194 million worth- for a $0.1 fee, where such a transaction would have cost tens of thousands of dollars as a transfer fee.
The news come in favour of contradicting the idea of the high fees for clearing transactions of Bitcoin or Ethereum, since the payment that Bitcoin trader made yesterday demonstrates the potential of “consensus currencies” to highly enhance cross-border payments.
The market has recently witnessed the birth of transferring platforms that eliminates hidden fees in bank transfers, where users can send variant-sized payments via bank accounts, with noticeably low fees in return.
However, for transferring $1 million-worth of bitcoins, it still costs over $7,500 in transaction fees, which means, wiring and conventional banking methods, costs tens of thousands of dollars are required to clear a transaction that is larger than $1 million.
In comparison, such an amount -$1 Million- costs $10k for the fees from a bank account to another.
To detail the deal in percentage, $7,500 means less than 1 percent of $1 million, where as Bitcoin transfers are even cheaper, knowing that clearing a $194 million transaction costs less than $0.1.
Bitcoin Transfer Costs Less than a Latte Cup
It is worth mentioning that Nouriel Roubini- an economist and professor at Stern School, said on October 14, that it costs $60 to process a Bitcoin transaction and based on that, it costs $63 to purchase a Starbucks latte that costs $3, using Bitcoin.
“So the cost per transaction of bitcoin is literally $60. So if I were to buy a $3 latte at Starbucks I would have to pay $63 to get it! So the myth of a ‘Brilliant new technology that reduces the vast fees of legacy financial systems!’ turns out to be a Big Fat Lie!” Nouriel claimed.