Bitcoin Forum

As it became known, the mysterious party that had transferred 124 946.6 BTC proved to be BitFinex. According to the exchange’s CTO Paolo Ardoino, the transaction was but a part of transferring 150 thousand BTC to the company’s hot wallet.

The change of address means that nobody can spend funds stored there until the transaction is fully confirmed. It took 40 minutes to get 6 confirmations in the blockchain. This created the network’s second-biggest address topped only by Huobi’s cold wallet storing 255 502 BTC.

Reports state that the transaction fee comprised 0.0096 BTC ($80), which is relatively high. Notably, the transaction data in the blockchain shows a fee of 0.00005578 BTC. For comparison, a SegWit transaction of 40 000 BTC ($230 million at the time) in May 2019 was worth 0.0001 BTC or $0.57.

BitFinex’s transaction prompted @Rhythmtrader to praise the “true power of bitcoin” that no bank could match.

The transaction in question is, of course, large and noteworthy. But, although everything may seem fine, there are alarming conclusions to make.

Why bother?

https://forklog.media/is-1-1-billion-transaction-in-bitcoin-that-big-of-a-deal/

If that is the case and the transfer is proven to be for the hot wallet, there is nothing to be feared of because these bitcoins will still circulate and will remain utilized by the people. We could be somehow afraid if the transfer is a withdrawal which will definitely put the market to dump at certain heights, though, more people will view it as an opening to re-enter the market again, and to start gaining profit in bitcoin.

As for the moment, 1.1Billion dollar for a bitcoin transaction will not affect the market too much but will provide lots of opportunities for the users of the new exchange, as their liquidity pool will enable them to trade bitcoin allot better.

Actually it is a big of a deal if we will look at it.
It would affect on how other people look at bitcoin, no banks can move that kind of money in hours not even by one day. Plus the low fee that you will pay comparing on how much you will do in bank transfers as some banks charge transfer fees this will surely convince other people that hey bitcoin is safe and convinient to use compared to banks.

This is a huge transaction with fast time and unbelievably cheap fees, bitcoin is proving to everyone about its superiority over the old financial methods.
I am sure no bank can handle such a large transaction with such time and fees.

The most important aspect of it is Bitfinex, a company that left its hot wallet security solution wide open for a 'hack', is putting that much in one again.

Other than that I find these stories boring and pointless. We know how much it can cost, or how little. I can also imagine if you're moving that much in dollars you're going to get some rather preferential treatment.

Only newbies are astonished by big transactions and their small amount of fees, anyone who has at least basic understanding of Bitcoin knows that there's absolutely no difference how many coins you move, so there's nothing spectacular about such transactions.

As for "power  that no bank could match", banks don't charge any huge fees on people who move billions, and such large transactions do happen frequently - large companies get bought, countries do transactions between each other, billionaires make donations and so on.

If the coins were of unknown origin, it could have been a issue of debate. This one is not. Exchanges do fill and distribute address with a large amount often. If you keep on looking at the 100 address with highest balances, many of them keeps changing everyday as the exchange keeps moving the coins.

Agree that bitcoin is more convenient but I think bitcoin is not more secure than banks, the banking system has a long history and it has a very high level of security.
Bitcoin has only been around for more than a decade but we have seen many hacks and lots of stolen cryptocurrency. Meanwhile, we rarely see bank robberies of large scale and stolen money.

Well, each has the advantages of its own and the blockchain is really effective when it comes to transferring large amount of money since the fee is not determined by how much BTC inside a transaction but rather the size of a transaction not to mention all the hurdle you will face with using bank transfer and could possibly being interogated. But, the irreversible nature of blockchain could also give a little risk.

It is not too much. It will increase in some time.
Millions of transactions are carried out daily in today's banking system. Transactions made using the banking system will flow into the transactions of crypto assets day after day.

Can't agree here. Its insane to move all of cold wallet to hot wallet.
Its hot wallet that have additional dangers by design. They either made mistake, were hacked or something i cant predict but nothing good.
Brace yourselfs because it could be a wild ride on famous bitcoin rollecoasters memes.

Such transaction is actually huge in my view. If you compare the value of that transaction to how much bitcoin it is, then you can appreciate that is high. I think that such transaction is showing us that the bitcoin business is really getting a huge attention.

Yes, this is a big deal if we are looking at it in comparison with the traditional banking industry. Even at a relative high fee of $80, that is still cheap if the same amount in fiat is going to be transferred with the bank-to-bank system. And this is telling us that indeed there is now more convenience, more safety and definitely cheaper way of transferring money via the Bitcoin way. The only challenge there is if an individual is doing it (not an exchange) and liquidating it with the market. One thing for sure is that Bitcoin can now easily perform the transfer with big amount of the coin but we have a big concern with the micro-transactions like buying a coffee or just doing the grocery because of the possibly higher (vis-a-vis the transaction amount) and the time it can take for the said transaction to be validated.

Bitcoin look get huge attention with many people want to make investment with bitcoin by higher amount, when bitcoin have been destination for investing many people will make bitcoin raise with higher price and look profitable way with investment. Bitcoin become most safety assets if you invest and make it as your way.

In fact, I have seen in the media that bitcoin transactions can reach trillions, it is true that bitcoin is already a lot of attention from large investments around the world because the value of the number of transactions is very large.
Bitcoin will be an asset that is used for future investments by large investors because they consider bitcoin to be a useful digital currency for themselves.

Not only the worth of transactions but the many papers that are involved before you can transfer that huge amount, the banks will ask a lot of verification and they will be the one to decide if the transactions will push through, this is big business and big companies should think about if they are still doing bank to bank, it's now an open secret and we have all the proof.

it is not a big dead and certainly there is no "alarming conclusions" to make about a big service that has been handling millions of dollars worth of transactions for many years moves some funds around. it is happening a lot more commonly than you know but usually they all move smaller amounts around so they don't make the news because they don't cause drama that much. otherwise bitcoin network is handling millions of dollars worth of transactions every single day.

Yes, this is a big deal indeed in comparison to legacy financial infrastructure. It is virtually impossible to casually "move" $1.1B worth of monetary value on traditional banking rails. There are simply too many intermediaries, friction and reconciliations to permit the transfer of value for a mere $80 fee. This won't last for long as the world wakes up and sees the value in distributed, blockchain networks over traditional financial infrastructure.

If that $1.1 Billion in Bitcoin is just moving from one wallet to another or to several wallets, I don't think there is much big deal to it. Bitcoin often jumps from one wallet to another in large amounts. But if that $1.1 Billion in Bitcoin is moved one time into an exchange wallet for possible or actual dumping, that is worrisome. An amount as big as that would definitely bring down the price.

What alarming conclusions? It just proves that Bitcoin is an excellent platform to be in when handling macrotransactions. It provides excellent security with minimal fees (unlike traditional banks) and much faster than going through all verifications in a traditional bank transfer. This isn't something to get FUD on since it's not a whale dumping all his coins in the market, which would be roughly 3.2% of daily trading volumes. It's just an address transfer and does not contribute to decrease of demand for Bitcoin.

It can't be assured that bitcoin can be a safe assets due to it's volatility, but with ore adoptions and businesses to participate and start bringing
money to make more strong foundations. Bitcoin is a good for long term believers as they can work it out, portions of investment for long term
and the other portions can be deal with short term scalps. It will be depend for each perceptions and point of views.

Well, the opposite will probably happen with this, instead of a decrease of demand for using bitcoin, people could see it as the best platform to transaction even billions of dollars with the best possible maximum security they could have. But let's focus more on the transaction fee, for me, it do really cost allot considering us, having not that much amount of bitcoin, these kind of transactions would be even possible if bitcoin system could adjust more to lower down the transactions fees.

He might be capitalizing on the fact that it the transaction fee was relatively higher on this particular transaction than with others. But he also have to understand that the transaction is 125000+ worth of bitcoin and the one he's focusing on is a mere 40000. So there will indeed be a higher transactio fee than the usual. But nonetheless, things like this are only evidences of bitcoin being a very efficient type of cryptocurrency that can even surpass banks itself. This is great news for me.

I agree banking system has more security because people are follow this from ages, let's give some time for crypto currency too. Crypto asset is made only to secure financial transactions that's why it's known as decentralized digital payment structure.

Time has nothing to do with security. Old systems become obsolete. We shouldn't think that banks are safer than bitcoin because people used to trust them for a long time. How many went bankrupt and lost money? What about The Lehman Brothers?

People are scared of big transactions because they think a dump is coming. In reality people who have a lot of money to spend don't want to crash the market. They want to make more money.

Even if the transfer is for a cold wallet it means that these bitcoins will not be circulating which means that the bitcoin will rise in price because the circulating supply will be reduced.

to make lots of money certainly not from investing, we must know the right time to shop for bitcoin, the large number of transactions whether selling or buying will certainly affect the movement and it can affect the psychological other traders to react to the market