Victor Ugochukwu · Dec 14, 2020 . 5min read
Xapo transferred over $1 billion in Bitcoin for just less than $4 transaction fees
Xapo initiated a transfer of 45,671 Bitcoin ($602 million) and 43,185 Bitcoin ($570 million) into unknown wallets spending just $3.54 in transaction fees.
By Victor Ugochukwu · Oct 28, 2020 . 5min read
Crypto community caught wind of some significant bitcoin transactions when someone sent a total of $1.1 billion in two separate transactions spending just $3.54 as transactions fees. Without a doubt, this is the largest bitcoin transaction in history.
Whale Alert which tracks the unusually large movement of funds within the cryptocurrency space tweeted about this. Apparently, Xapo initiated a transfer of 45,671 Bitcoin ($602 million) and 43,185 Bitcoin ($570 million) into unknown wallets.
It is not, however surprising that huge transactions can flow out of Xapo, which is a crypto custody firm. Coinbase had acquired it for the sum of $50 million in 2018. While Xapo initiates large transaction batches like the 4,000 bitcoins and 1,000 bitcoins that left its wallet last week, yesterday’s transactions were definitely monstrous.
Perhaps, the most important news in the $1.1 billion transactions was the fact that a mere $3.54 was spent as transaction fees. And also the volume of the transactions facilitated in a near-instant. The modern premise behind the creation and evolution of cryptocurrencies is the ability to move money “freely” without crippling regulatory bottlenecks.
The Bitcoin transaction fee advantage over legacy banking
Comparing these two transactions and the total viz-a-viz with legacy financial institutions and fintech points out the crypto advantage clearly. For instance, the media stated that it would take bizarrely 128 years for a Chase Bank customer to do the same. And this generously added weekends as part of the banking days. Chase Bank places a hard limit of $25,000 on its customers per day for personal transfers. Even if they opt for wire transfer, adding weekends, it will still take the customer 13 years for such transfers. And what about the transaction fees for the wire transfer? Chase Bank will charge at least $117,200 for domestic online wire transfers of Xapo bitcoin transfer volume.
Even though bitcoin network transaction fees can spike when it faces network congestion, the advantage of moving around with ease as we saw Xapo did recently cannot be overlooked. Especially by banking institutions which Jack Ma recently called out in his advocacy for digital currencies.
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