Sofiko is a freelance fintech copywriter at Coinspeaker. With a Bachelor degree in International Business and Economics, Sofiko has been deepening her knowledge of an agile innovative industry primary focusing on the robust blockchain technology and cryptocurrencies. As a bank employee, Sofiko particularly keens on crypto and blockchain integration into the established banking systems.
For those still skeptical about the abilities of digital currencies to revolutionize a financial realm, the superpower of cryptos has found a vivid proof.
Until now there are fierce debates revolving around the capacity of Bitcoin and the rest of cryptocurrency wagon to serve as a route for multi-million transactions and ultimately replace conventional banking system with the seamless blockchain.
Some people remain skeptical about a star-folding future of Bitcoin and digital currencies described by their supporters, citing scalability issues and hefty fees per transaction in a row of technology bugs.
According to a famous cryptocurrency critic and oppositionist, Nouriel Roubini, the price for a transaction being processed within the blockchain network is such a rip-off that the regular cup of Starbucks coffee bought with Bitcoin would cost about $63, when $3 stands for coffee and the remainder will be commision levied by Bitcoin network.
As a result of these calculations, the professor at Stern School has claimed the new technology that are said to bypass overheads and increase transparency of financial systems to be a fraud.
Bitcoin Reputation Being Recovered
However, these allegations turn out to be a Big Fat Lie, since the other day the transaction fee of processing about 30,000 of Bitcoin that at the moment equals roughly $194 million has estimated only 0.1% or $19,400 in dollar equivalent.
Moreover, statistics reveals that an average fee per Bitcoin transaction has stayed pretty stable for the past few months on the network. It has been below a dollar since June with an exception of a few days.
It is worth to mention that in case an anonymous whale has decided to transfer $194 million with the help of traditional banking services the commission for such a transaction would largely exceed 0.1%.
The research based on data provided by a UK-based multi-billion dollar firm for low-fee banking transfers revealed that even on a platform like Transferwise, to send over $1 million, it costs over $7,500 in transaction fees. That means, through wire transfers and conventional banking methods, tens of thousands of dollars are required to clear a transaction that is larger than $1 million.
A Bright Future Indeed
As soon as the news of such a large-scale Bitcoin transaction has leaked into the web, the crypto-community was splashed with a new wave of Bitcoin hype. The cryptocurrency admires from all over the globe did not lose their chance to express their admiration for the king of digital altcoins while many Twitter users felt the need to tag anti-crypto protagonist Nouriel Roubini.
However, one has to be impressed with the ability to send a huge BTC transaction anywhere in the world in roughly 30 minutes at a cost of $0.10. Banks have a long way to go to offer that sort of service to anyone, that is for sure.
With that in mind, it is highly likely that cryptocurrencies will gain wide acceptance by investors and firms in the offshore banking sector that are in possession of a $30 trillion fortune relying on financial institutions to clear large transactions.