As of yesterday, a Bitcoin transaction took place worth $80 million, which equates to 217,517 BTC. This has gained significant attention around the cryptosphere and supporters of cryptocurrencies because the total transaction fee was 0.0001 BTC, or 4 cents. This low cost of transferring such a large amount of money was poked fun at by a Bitcointalk user who noted, “…that’s much lower than what Western Union charges of [sic] a $50 transfer!”
Transactional Wonder or Security Nightmare?
As always, big movements and money shakers are often met with accusations of foul play, prompting some people to fuel sensational hype baiting by offering claims of hacking and
The 217,517 BTC Transaction
other malicious or dishonest circumstances surrounding the transaction. These cries appear to be nothing but speculation and are likely just some bored individuals having fun with a story that’s making headlines everywhere.
The most likely explanation to turn up thus far are beliefs that this transaction is a result of one of the exchange titans, Bitstamp, shuffling around its funds – probably to a more secure location. So while the sender and the receiver are both still the same person, the importance of the message beaming out across all of the social networks are the same: you can transfer staggering amounts of capital anywhere in the world — across any borders or boundaries and day or time of the week — for less than the price of a stick of gum. And you can expect it to be there within a timeframe of 5 to 20 minutes.
To put these numbers into perspective, 80,000,000 USD worth of bitcoin is worth roughly 1/60 of the total market cap of Bitcoin. Now, according to the Federal Reserve of the United States, there is $1.29 trillion in circulation (of which only $1.25 trillion of this amount is in a physical form). If we account for a similar proportion in regards to just the physical currency in circulation, this would be like transferring $20.8 Billion for a fee of 4 cents.
With that in mind, there is likely no institution, outside of the Federal Reserve, which can transfer money at such a cheap rate. However, this is where Bitcoin has proved its might. Once again it has shown that the power to transact millions of dollars for a negligible fee has become available to anyone that chooses to use the Bitcoin platform. Of course, many of the alternate crypto platforms also provide this same benefit.
Social Utility of Crypto Platforms
While most of the world remains entrenched in the old financial systems, events like this are what truly display the might of crypto platforms. It is the small features such as this that allow us to see just how much freedom these relatively new technologies can bring.
So farewell to the days of scheduling yourself around the hours of a bank. Goodbye to the fees and restrictions which could stop you from sending capital to wherever you pleased. And welcome, most importantly of all, to an era where you control your money. Do with it as you please and know that so long as one properly secures it, no one else may deny your ability to use it as you see fit.
As for those that don’t find Bitcoin to their favor, there are quite a number of alternative projects in which you can involve yourself. This is perhaps the greatest glory of the crypto realm. Go where you please, for the choice is yours. As was displayed today, that is what cryptos have brought to us all – choice. Even if yours is to move your wealth from one digital pocket to the other.