- September 20, 2018
- Posted by: Bitcoin Center NYC
- Category: The Latest Bitcoin News
Based on publicly available information involving wire transfers through Bank of America, the least expensive domestic wire will cost a $30 dollar fee and, at most, for international wires sent in U.S. dollars, the fee will cost $45.
While there has been criticism of bitcoin’s fees, especially before the soft fork known as Segregated Witness which allowed for second-layer solutions to address issues such as transaction costs, these large bank fees are incomparable and, if anything, serve as an example of why the traditional centralized banking system has become obsolete for a globalized world that transacts digitally.
To offer a comparison, Bitcoinist notes that Earn.com recommended on September 19th that the quickest settlement relative to the transaction fee was 8 satoshis per byte. Using an example of a 90k transaction, this would cost the bitcoin user $0.75 cents and would cost the Bank of America user $45 (if sending USD internationally). “While Bitcoin critics claim the cryptocurrency is too expensive to use for transactions, data from Bank of America (BoA) shows traditional fiat transfers cost 6000 times as much.”
Those who are transacting bitcoin, however, through the Lightning Network, a second-layer solution made possible by the Segregated Witness soft fork, are experiencing nearly non-existent transaction fees; currently the median fee rate is listed at 0.000001 satoshi or 0.000000000064 cents.
While further adoption of these second layer solutions, such as the Lightning Network, will only continue to offer low fees and near instant transactions, a simple up-to-date free bitcoin wallet can outcompete this large institution in what they charge individuals to move their own money domestically or abroad.