$1b Moved in Seconds: Bitcoin Revolutionizes Large Settlements
• On March 16, 2023, over 40,141 bitcoin (BTC) were moved in a single transaction worth $1.05 billion
• Bitcoin transactions offer greater efficiency, cost-effectiveness and security compared to traditional banking methods
• Transaction fees for large transfers with Bitcoin are significantly lower compared to traditional banking methods
Massive Bitcoin Transaction
On March 16, 2023, over 40,141 bitcoin (BTC) were moved in a single transaction worth $1.05 billion from 254 addresses to two separate output addresses — showing once again the advantages of using BTC for large settlements. The transaction fee was just 333,000 satoshi worth about $87 — only 0.000008285714285714285% of the transferred sum — making this an example of the inherent efficiency and cost-effectiveness of cryptocurrency-based settlements compared to traditional banking methods.
Traditional Banking vs. Bitcoin
In traditional banking systems, moving such a large amount of money would generally involve numerous intermediary banks which can be costly and slow down the transfer process. Furthermore, international transfers are likely to require currency conversions adding even more fees and potential delays due to different time zones and banking hours. In contrast, bitcoin simplifies the process considerably allowing for direct peer-to-peer transactions with minimal fees regardless of where you’re transferring it to.
The costs associated with transferring such a large sum via traditional banking methods would most likely be higher by orders of magnitude when compared with the $87 fee paid for this bitcoin transaction — an astonishing 0.000008285714285714285% of the total value transferred.
Traditional bank transfers often take several days or longer to clear — especially during international transfers — while bitcoin transactions typically take just minutes or hours depending on network congestion and fees paid by the sender. This speed is particularly advantageous for businesses and individuals that need quick access to funds in order to meet their financial obligations or make payments on time without being subject to delays caused by intermediaries or currency conversions during international transfers.
This massive transaction serves as a reminder that BTC offers much needed improvements for large settlements in terms of efficiency, cost-effectiveness and security when compared with traditional banking methods such as wire transfers or checks which can take days or weeks before they are cleared due to numerous intermediaries involved in each transaction along with extra fees associated with currency conversions during international payments.