Bitcoin is often touted as simply a store of value, with the majority of users concentrating on price fluctuations rather than use cases.
Yesterday, however, a single transaction involving 66,233 BTC proved just how useful and affordable the Bitcoin network is for transferring currency. At approximately 7 pm GMT, a whale transferred the $265 million worth of Bitcoin to over 100 individuals addresses, with the entire move costing only $44.57.
For comparison, a normal bank transfer involving such large amounts could cost easily up to $300,000, when adding in foreign exchange fees. As the cryptocurrency market value has dropped recently, Bitcoin mining difficulty has reduced significantly and as a result, transaction fees are far cheaper.
In a further interesting twist, the wallet associated with the transactions has been inactive since 2014 and is associated with five other wallets, each containing an additional 66,000 BTC. This means the whale could be in possession of almost 400,000 BTC in total and potentially the largest single holder of BTC in existence.
The identity of the whale remains anonymous and an old Reddit thread suggests the wallets may be associated with illegal activities dating back to 2013. This means its possible the wallets were seized back in 2014 and are only now subject to legal procedures. As of yet, it’s unclear what the whale intends to do with the BTC. If they attempt to try and sell it through an exchange rather than “over-the-counter” it could have further negative effects on the overall cryptocurrency market.