Bitcoin Forum

what will be the effect on network and different technical metrics, if anyone sent 1 millions bitcoins in 1 transaction (hypothetically..., because no one have even 2% in one wallet)

It would dump the market of course. But I doubt you could sell a 1million bitcoin in one transaction like for example on dex also with cex since the liquidity might not be enough to handle such volume.  This could be done in series of transactions but are you implying that Satoshi would sell his bitcoin in 1 swoop? I doubt it.

The bitcoin market will turn centralized which is not possible, there will be manipulations by the giant whales in determining the bitcoin price.

It also depends on the medium in which such individual is sending from, if it's through an exchange then it depends on the policies and they make for the minimum and maximum deposit or withdrawal capacity, if its an transaction from a Cold storage then i think that they should be able to accommodate more higher rate than the exchanges, but let's say the reality, no one can hodl upto that amount not even in El-Savador where bitcoin is a legal tender, the beauty of bitcoin lies in holding it in every channel of distribution across the world and not by a single mother entity.

Which bitcoin address have you traced to have 1 million BTC? There is none that I have heard of.

What if the person send bitcoin from a noncustodial wallet to another noncustodial wallet? If traced to an exchange is when it might lead to bear market.

It can not centralise the bitcoin market, it will only cause price drop if the person send to different exchanges and exchange the coin to fiat. But the market will survive this.

We should know that this is just not what can happen in reality, no wallet holds such huge amount of coins.  Binance which is an exchange that has highest bitcoin deposit in a cold wallet address which is not even for them but for Binance users, has 252597 BTC on the cold wallet address.

In the bitcoin Network the effect will not be big, it will be just one more transaction in the blockchain and it will get confirmed just as any other transaction. But the real effect would be on the markets, a big panic would come to the markets because if someone decides to sell that 1M btc the dump in the price would be massive, that's why people would try to sell their coins before the whale do it.

And some interesting data is: The only user who could make a 1M bitcoins transactions would be Satoshi Nakamoto.

All eyes will be on it but the media will look upon how much the fee was paid for that transfer. I would make a little scare but that's just temporal and it will be back again to the usual.

That's how these huge transfers are making a noise whenver they've been broadcasted by the media as if it's the one that moves the market. Maybe but the least and that's what I think what will happen but it won't be that much.

I know this is just like an "IF" situation and matter but who's gonna have that huge transaction aside from satoshi?

No effect on the network at all, only I think if the sender is kind enough to set a very high fee for the miner's reward (as a billionaire) say 1000BTC for a single transaction, then it will probably be a record in bitcoin mining history using current price conversion.

Miners have problem with people wanting to have all the benefit when they refuse to increase the fees and that is the effect. In coinbase you can transfer 1,000 dollar with $10 , with P2P maybe you do less fees. If you are ready to allow miners feeding fat from the amount you will see fast transaction, lines will collapse for you and ants will lick your sugar  ;D

The only effect this’d have on Bitcoin is a psychological one and as a consequence, maybe a short term price change.

It’s not like it matters to Bitcoin whether there’s 1 sat moving or a million BTC. This doesn’t overload the network or anything, so besides the displayed number there’s no real issue. I believe it doesn’t change anything about how centralized Bitcoin is either.. after all, for what we know maybe today there already is somebody owning a million BTC but in different wallets.

This is a fantasy scenario. Who could send a million bitcoins in a single transaction?

But assuming that this happened and the bitcoin was transferred from one wallet to another, I do not think anything will happen except that it will cause panic in the market as a result of this abnormal movement.

As for the assumption of transferring one million bitcoins to a central exchange, such a scenario is not expected to happen for many reasons, the most important of which are security reasons. No one risks sending such an imaginary number at once to one central exchange.

If you just send 1,000,000 bitcoins (or 100,000 bitcoins, which is more realistic) from one address to another address, then there will be no negative consequences for the bitcoin network. 

Yes, such a deal will not go unnoticed by bloggers and crypto enthusiasts.  This event will be discussed in the blogosphere and media for several days.  But over time, everyone will forget about this event. 

As for the sale of 1,000,000 million bitcoins, this is a more important event for the crypto industry. 

After all, in a sale and purchase transaction there is always a seller and a buyer.  Therefore, the question arises - who made the decision to buy 1,000,000 bitcoins at the same time?

It'd probably "spook" the market if there was a tx with 1m Bitcoin, but at the same time I doubt it would be a transaction to an exchange as there simply isn't the liquidity for selling that quantity, only via OTC would be possible over time, as there is only around 70K Bitcoin buy orders across exchanges right now. Also not convinced there is anyone (apart from Satoshi who wouldn't do that) who has that many Bitcoins.

At most Binance have around 400K across a few different cold storage wallets. But unless they went into liquidation then this wouldn't hit the market anytime soon. I otherwise just checked and the largest ever transaction appears to be 161.5K Bitcoin ($1.1 billion at time of transfer), although this may well be by dollar amount as opposed to Bitcoin domination.

on a very limited temporary short term basis it would be a "storm in a teacup" there would be
so much talk and speculation about it, it would seem almost to be the only thing which would
be happening.

On the network -  it would just get confirmed just like any other Bitcoin transcation.

But yea, who is going to sell and buy 1,000,000 Bitcoin now or in the future, I could see it
happening about 10 years ago though.

The data associated with a transaction is unrelated to the amount being transacted. A transaction of $100 worth of BTC can have a higher transaction size than one of $1,000,000 worth of BTC.
What determines the size of a transaction are the inputs primarily and also the outputs along with the type of wallets used.

Again, the amount does not determine the transaction size.

The time it takes to confirm a transaction is the time it takes for the block it is in to be added to the blockchain and it is averagely 10 minutes per block. The size of transactions in a block does not affect the block being added to the chain.

- Jay -

Fine anyone ca hodl upto such amount but i also think about it im this direction that it's too much, bitcoin is a currency that has to be evenly distributed across the world that everyone will have access to it utilization, if those mining it aren't greedy enough to cease them to their own favour and hodl or inflate the price then i don't think those holding it as well can make any difference than to sell from what the market gives

Eventually the biggest stake holder of bitcoin ever is Satoshi who is owning about 1 Million bitcoins but its not in a single address if I am not wrong and also I don't think he will ever come and use those bitcoins cause he vanished from being existence for over a decade.

So for now anyone apart from Satoshi can do such transaction and 1 million bitcoin can't be spent in 1 transaction technically cause one block will not be enough to hold that much weight so that's the effect we can see on the network.

But talking about price then surely it will shake the market and create FUD and that's it because its not going to make any long term effects.

The circulating supply is 19 million coins, and some coins are likely to be lost, so let's say 1 million is 7% of the total. It's a huge transaction, for sure, and a transfer like that would make the news and cause a lot of speculation. But if it's literally just sending BTC from one wallet to another (which doesn't have to mean that someone's selling the coins at all), then I only imagine it would congest the network, maybe cause a spike in transaction fees (ChatGPT says this assumption makes sense because a larger transaction occupies more block space, but I see some in the thread have a different opinion).
In any case, there's no reason for the price to go down in this situation because the movement of coins doesn't mean they're being sold. I think the impact on the price depends on the details and how the news is framed. If it's framed as some old legendary address suddenly getting alive, people can get excited rather than feel panic over it, but if it's framed as a huge dump of coins by a whale, then it can lead to panic.

Indeed, simply moving funds can give rise to various speculations. However, when transferring 1 million BTC to an exchange wallet, it would cause a massive frenzy. Even Binance's wallet, which holds only about 25% of that amount of Bitcoin, would feel like confronting a monstrous entity when dealing with such a substantial sum of money.

Effect on the network and technical issue, it won't create any problem because Bitcoin transaction fee depends on transaction size and fee rate. Fee rate is chosen by the sender or receiver if you need to use Child-Pay-For-Parent. Transaction size depends on inputs and outputs, and type of transaction (address type too). Transaction size does not depend on how many bitcoin is sent in that transaction.

One problem is if you have 1 million bitcoins, you don't care about transaction fee and can use very high fee rate to troll others. However, if you only do it with one transaction, it won't create issue in mempool because your transaction will be only one of many other transaction in one Bitcoin block. It won't create any problem in long term.

Transaction fee on Bitcoin blockchain won't be charged like bank transfer like if you make a bigger transaction in value, you will be charged more bank transfer fee.

There should be no significant changes in the network since the Bitcoin network should be strong enough to handle a transaction with a high volume and high fees, the miner who gets to mine that block which is containing this transaction will surely have a great time since higher fees will be paid for that based on the size of the transaction.

If someone tries to sell that many Bitcoins in a centralized exchange, then that could become an issue and it can make the price crash or it will move however the person owning those Bitcoins wants it to move since manipulation will be pretty easy with that.

If a situation like that were ever going to be possible, I said ever going to be possible because there's no single wallet that hodls 1million BTC, it will only cause FUD in the market whose end product is dump. The good thing from such a situation will be that wealth will be recreated or redistributed. Every serious dump affords those who couldn't buy in at high to get in at low. That's how so many wallets get Bitcoin as against the few that hedl those quantities in the past.

I like records getting broken and history made. It will help widen our scope of discussion in this industry if that were ever going to be possible. Sadly, this won't happen.

If it will be sent just to another wallet, then nothing will change it will only be transferred. If it is via exchage only transaction fee will be cut.
If it is on the market place, it will only be set as a limit order. Unless someone is willing to buy that kind of amount, the price will not drop. In terms of exchanges they will usually chunk your orders into many limit orders.

It will drop. But not significantly.

If sending 1 million bitcoins in one transaction will certainly be difficult to do because the trading volume required is very large, if this can be done then a price drop will definitely occur because such a large transaction will affect other investors because they feel panic with such a large transaction, and until now I have not found a wallet address that has that many bitcoins, and I'm sure Satoshi is a person who has such large assets because he is the owner of bitcoin, of course it is very reasonable and I am sure he will not make such a big transaction.

Let me get you correctly; do you if someone sells off 1 million BTC or just send from one wallet to another?
Well, if it's just transferring from one wallet to another, it won't affect the price, but I am sure that no one even has anything close to that in the first place.

The effect if bitcoin $ 1 million is sold in one transaction then a big influence on the value of bitcoin certainly a decrease must occur because such a big sale will arise a lot of questions and panic for every investor must be felt, so such a big transaction has never happened and I don't think even a big whale has such a big bitcoin asset, so don't expect this to happen because we don't want anything negative to happen to the cypto market, And the volume of transactions required is very high so this will be difficult to happen.

A transaction worth one million bitcoins will be treated similarly to any other transaction. The network will validate it and put it on the blockchain, and eventually it will be confirmed. Whether a significant impact is likely to be felt on the market and, as a result, market sentiment When the market reaction to large transactions, especially those involving large amounts of bitcoin, is influenced by market sentiment and dynamics, that can lead to increased selling pressure. However, a hypothesis is still a hypothesis, so don't think too much about it.

This will dump the market depending on the direction of the transaction flow. If it is moving from a non custodial wallet to another non custodial wallet, the market will not dump. If it moves from exchange to non custodial wallet, the market will improve instead. But if it moves from non custodial wallet to an exchange, the market will surely crash with alot of panic.

This is right. But I doubt there will be alot liquidity to handle that. For sure CEX cannot handle such a transaction. Wallets will do since it's pursing the transaction directly to blockchain. But who has 1 million btc anywhere?

I think a transaction to move a million bitcoins is even theoretically impossible. Even if Satoshi decides to consolidate all his outputs at 50 btc, this transaction will have 20,000 inputs and it will not fit into the block. Correct me if I am wrong.

If they move coins to trade, before they actually trade their coins, market will be affected by panic and people will guess that those coins will be sold on market. We never know that they will sell or not sell but panic effect will occur ahead. I believe those transactions will be made to create panic rather than actually for trading.

If they want to sell their coins, they don't want to do effects that will eat their trade value and they will try to hide their intention as most as possible.

Moving coin out of exchange will cause more belief that there will be less selling pressure on market but we never know when they will move their coins back to exchanges. Another guess that will be psychological manipulated by whales.

If 1 million bitcoins are sent in a single transaction, network and technical metrics will be affected. And sending 1 million bitcoins will definitely require network bandwidth. Transactions using network bandwidth can disrupt network traffic and increase transaction time if the network bandwidth is insufficient. And if the network has long latency, the time Bitcoin takes to complete the transaction increases.

There would be no effect. The bitcoin blockchain is perfectly able to transact a million bitcoin in one transaction. So as with every other transaction it would arrive at its destination in 30-60 minutes and at current rates this would be sending $27.3 billion of bitcoin with a ~$2 transaction fee (assuming its not made up of tons and tons of inputs).

A transaction with 1 million bitcoins would cause congestion and high fees in the Bitcoin network. It would attract scrutiny from regulators, but such a transaction is unlikely due to practical limitations and how Bitcoin transactions are designed.

That we course a very high transaction fees and market been in dip position, if everyone start making a transaction of Bitcoin from one wallet to another in the same time, in other words, is not possible because is a few people that holds up to one Bitcoin, and is company or institution that holding more than a Bitcoin in the Wallet.