On 16th October, a person moved USD 194 million in the form of 29,999 BTC and that too with a fee as minimal as USD 0.1 which could be as high as thousands of dollars, had the transaction been made via banks. This shows how Bitcoin can influence the world and the way we deal with money. Hence, this proves that Bitcoin is one of the easiest ways to transfer money and it is not expensive to clear its transactions.
$1 Million Transaction Can Cost Up to $10,000
Transferwise is a firm based in the United Kingdom that removes hidden charges that creep in bank transfers. It is a multi-billion dollar firm. Using this, people can send all kinds of payments, either small or large, without having to burn a hole in their pockets, i.e., paying minimal fees. But, however cheap it may be, one still has to pay $7500 for transferring $1 million through it, which is not even one percent of the money being transferred. Surprising, right? But what is even more surprising is that it takes USD 0.1 to transfer USD 194 million via Bitcoin. There are many cryptocurrency critics like Nouriel Roubini, an economist and professor at Stern School, who cite various examples as to how one has to pay the same money for the products they buy using Bitcoin when Bitcoin transaction charges are also taken into consideration. The whole concept of cryptocurrency, according to them, is a big lie.
But, his assertion was belied by Ari Paul, co-founder of Blocktower, who assured that the transaction fee of Bitcoin is indeed less than USD 0.1 and can be verified by anyone on Blockchain. These cryptocurrency critics just fool people by making wrong and absurd allegations about cryptocurrency such as Bitcoin, which decreases the trust people have on it and hence, they do not invest in it. People should be free to make their own choices. The transaction charges of Bitcoin can be easily googled and known, and as said by Ari Paul; they do come out to be less than 0.1 USD, and hence, extremely low as compared to what banks charge the users for transfer of money.
Cryptocurrency and Offshore Banking Market
Cryptocurrency always has an edge over the regular banking systems. Using cryptocurrency, we can easily handle small and large payments efficiently. Hence, it is highly possible that the firms and the investors in the offshore banking market will be ready to adopt this method. They look for profit and efficiency and cryptocurrency such as Bitcoin indeed provides all of them.
But, one should be careful while using Bitcoin. Transferring millions of dollars with a transaction fee of less than USD 0.1 is highly profitable, but transferring an amount of money as small as USD 1, USD 5 or USD 10 with a transaction fee of USD 0.1 is not so profitable, and hence, not desired. But, indeed, cryptocurrency is much better than regular banking systems.