Whale Paid $4 Commission to Transaction Over $1 Billion of Bitcoins
Large Bitcoin transactions regularly attract attention, and it is difficult for whales to go unnoticed on the network. How much do major investors pay for the transfer of multimillion-dollar amounts and is it profitable to carry out such transactions?
$1 billion Bitcoin transaction
On July 28, Whale Alert announced a transaction of 92,857 BTC, which at the current rate of Bitcoin equates to an amount of $ 1.09 billion. This transfer coincided with a period of growth in Bitcoin in price, so some crypto analysts evaluate this share as a way to manipulate the rate of a crypto asset. Whale paid a $4 fee for this transaction.
Of course, when compared to traditional bank transfers, the $4 commission for transfers over $1 billion seems ridiculous. That is why large investors are interested in storing capital in Bitcoins. Also, the confidentiality of data about the participants in the transaction, which is provided by the Bitcoin network, plays into the hands of the whales. Despite the fact that information about a large transaction is publicly available, any third party cannot record the ownership of funds.
Commission increased by 540%
The fees for moving Bitcoins from one crypto-address to another have always been “floating” but remained at a relatively low level. As a rule, the cost of the commission is influenced by the level of network utilization, the price of the crypto-asset, and the size of the transaction. If the trader wants the transaction to go through as soon as possible, he can pay a higher amount.
Bitcoin transaction fees have literally skyrocketed 540% over the past 30 days. If the sender paid a commission of $0.835 on July 5, he had to pay $5.35 for a similar transaction on July 6. Of course, the rise in the price of Bitcoin to $11,000 directly influenced the growth of the commission.
Crypto analysts also associate the increase in fees with the increased congestion of the Bitcoin network. Over the past month, the number of transactions that are awaiting confirmation from miners has increased significantly.