Reddit forums got heated a few hours ago when a multimillion-dollar transaction was reported on Bitcoin’s Blockchain at almost minimal cost. A wallet of unknown origin mobilized 48,500.08799325 BTC and only paid a fee of 675 Satoshis (0.004 USD).
At the current exchange rate, this would represent a total of almost $300 million sent in minutes:
Several posts documented this transaction not only because of the multi-million dollar amount but also because it is a sign of the practical advantage of using cryptocurrencies in the financial market.
Usually, this type of transactions through traditional systems, can exceed several days of procedures, especially if the parties are located in distant countries.
The debate on the convenience of crypto transactions generated interesting answers, despite agreeing on their practicality: One side considers that the ease of delivery is a definite advantage of cryptos over banking:
However, other users, with the same sarcasm, highlight the convenience of the centralization characteristic of the traditional banking system:
Another critical aspect to note, in addition to the time, is the minimal costs of sending funds through Bitcoin’s blockchain. Paying a fee of $0.004 for a multi-million dollar shipment is virtually free when compared to traditional bank rates.
Thanks to the implementation of second layer solutions, bitcoin transactions have been able to decrease their cost while increasing adoption. Such technological advances have proved successful despite criticism from other altcoins such as Bitcoin Cash.
The Scalability Debate: Why is a Fee So Important?
One of the main reasons Bitcoin Cash users consider BCH a better option over BTC is precisely the high price of fees.
And while this was true last year, it is provable that today it has no livelihoods whatsoever. Only by way of comparison, tracing the origin of the funds, it seems that the original wallet received this significant amount in late 2017. That transaction of almost 1Bn USD in BTC charged a fee of $15 by then (0.00080908 BTC)
Roger Ver assures that Bitcoin Cash’s solution makes it a highly recommended altcoin for the public. He affirms that instead of implementing solutions such as Lightning Network or Segwit, an increase in block size is better. Bitcoin Cash currently supports up to 32 MB per block.
The Bitcoin community criticizes this solution for undermining the decentralization that Satoshi Nakamoto spoke of in Bitcoin’s white paper. By increasing the block size, individual miners would be unable to mine a block given the lack of hashing power.
Although most of BCH’s major proponents are precisely miners, the community keeps united despite BTC’s minimal fees and confirmation times.
Currently, BTC is valued at 6.137 USD and BCH at 698 USD.