Ever since Bitcoin (BTC) and other digital currencies emerged in the market, they’ve been a better alternative to the traditional means of sending money. They have been criticized by many over the years. However, they have proven their worth and their adoption is increasing every day. Bitcoin (BTC), which emerged in 2009, was aimed at transforming the trading pattern of the world.
This has worked out to a certain level over the years. However, other coins have emerged to complement the flaws of Bitcoin. They are also aimed at revolutionizing the finance sector.
A Bitcoin (BTC) User Transferred 29,999 Bitcoins with a 10 Cents Fee
The adoption of digital currencies has increased significantly over the years. This is because of the numerous benefits they offer. Digital currencies have helped to make transactions much faster and cheaper.
On the 16th of October, 29,999 Bitcoins worth about $194 million was moved with a transaction fee of just 10 cents. Using a traditional means of transferring money to transfer such an amount of money would have cost tens of thousands of dollar
This greatly proves the potential of digital currencies to optimize international payments significantly.
Another notable advantage of this form of payment is that it is faster than the traditional form of payment. Transactions on blockchain takes lesser time to complete than traditional payment system.
Banks Will Charge over $10k for Transactions worth $1 Million
Transferwise is one of the best firms when it comes to bank transfers. Transferwise is a multi-billion dollar company that is based in the United Kingdom. The firm eliminates hidden charges in bank transfers. The firm provides a platform for users to send money (both small and large) through their bank accounts with very low fees.
Nevertheless, even on such a cost-effective platform, a transfer worth $1 million come with a transaction fee of $7,500. This means that other banking methods and wire transfers would incur charges of tens of thousands of dollars when sending over $1 million.
The transaction fee of Transferwise is cheaper as it charges less than one percent of the transferred amount. However, on the network of Bitcoin (BTC), it costs about 10 cents to carry out a transaction worth $194 million.
Digital Currencies Might Completely Take Over the Conventional Banking System
The use cases of digital currencies are gradually coming to light. They have started seeing more adoption, and they are moving towards mainstream adoption. As the public blockchain networks’ scalability improves with the integration of layer-two and on-chain solutions, digital currencies will grow to handle small payments with a high level of efficiency.
The transaction fee of the traditional banking system is not encouraging. Spending 10 cents to $1 for transactions worth $5 to $10 is highly impractical and inefficient. Nevertheless, spending that same amount to process transactions worth millions of dollars provides digital currencies a competitive edge over legacy systems.
