The CEO of cryptocurrency exchange Bitstamp highlighted the usefulness of Bitcoin (BTC) after funds worth nearly $ 1 billion changed hands for less than $ 4 in fees.
Bitcoin fees too low to understand
As a blockchain monitoring resource BitInfoCharts confirmed on October 14, the transaction at wallet and storage provider Xapo involved a total of 112,027.29 BTC.
Previously, Bitstamp transferred around 107,800 BTC from its funds to Xapo, paying a fee of 0.0234 BTC, or 0.0000217%.
The subsequent operation, run by Xapo itself, saw an even more microscopic amount paid to miners to approve the transfer of funds. At $ 3.89, the fee rate was equivalent to 4.1724762780401154e-7% – too small to write sensibly using standard decimals.
As CEO of Bitstamp, Nejc Kodrics abstract, the funds “transferred in one transaction for the price of a cup of coffee”.
73 million Bitcoin days destroyed
When the first transaction took place, other reviewers noted how easy it was to use Bitcoin for huge wealth transfers without needing government approval or trusted intermediaries.
Nonetheless, Bitstamp sending coins to Xapo raised eyebrows for another reason. According to data uploaded to Twitter, the transaction saw 73 million Bitcoin Destroyed Days (BDD).
The metric implies that the funds involved had not moved for a considerable period of time before leaving the Bitstamp wallet.
As Cointelegraph reported in August, BDD can be used to gauge investor sentiment. At the time, it was suggested that the price of Bitcoin itself could be due to another bullish phase.