To tell how Cheap Bitcoin Transaction is

[ralle14]

Recently, some of our local banks started removing transfer fees, but there's still a limit on how much money you can send, even if you're fully verified. The other banks here still charge $0.2 per transfer, so it's going to be a pain to replicate that kind of transaction.

If you use centralized exchanges, they will proceed your withdrawal with a fee rate on a tip of mempool, that means they pay high fee rate and charge you expensive fee too.

This was one of the reasons that pushed me away from using bitcoin when i'm about to withdraw through centralized exchanges, the rates they charge are unbelievable compared to other services.

[X-ray]

I feel it's more cheaper to send large amount of money using Bitcoin than the bank, maybe I'm overthinking things but somehow if you clearly think about it, Bitcoin transfer is better.
I said what I said because with banks it doesn't end with transactions fee, every month they charge you for some money too, the issue here is when sending small money using Bitcoin it's costly compare to a bank, $0.12 Vs $0.05 from what I have seen.
Either ways I will still choose Bitcoin as my bank over real world banks anytime of anyday, dreaming about a world where Bitcoin and crypto only exists is just too much of a dream, fiat got to exist, it's the power fuelling the centralised world.

The $0.12 vs $0.05 only true for domestic transfers though and you're also missing out the pseudonym feature, anyone who receives your money will know your name.

Make it international transfer and you'd get higher fee with currency exchange rate markup.

For domestic transfer, you can compare it to lightning which costs way cheaper than direct Bitcoin transfer.

The best part is as you said, you don't need to pay monthly fee and nobody will touch your money for any reason.

In short, Bitcoin is already viable for daily transactions.

[m2017]

I came across a Bitcoin transaction fee of $0.12 as the cost for sending approximately 500 Bitcoins. This sounds amazing, strange, or interesting, but you don't have to doubt it because everything is possible with the Bitcoin network. You have the privilege of customizing your transaction fee to a suitable rate that you can afford.

Yes, transaction bitcoin fees are quite low, even during peak network congestion, especially when compared to traditional systems. Still, one shouldn't idealize bitcoin.

Incidentally, the fee amount choose also affects the time it takes for a transaction to be confirmed. If you need a quick confirmation, won't be able to set the minimum fee. For instance, I recently had to wait over a day for a transaction to be confirmed. Since the timing wasn't critical for me, I could afford to wait.

People no longer have to suffer the cross border transaction exorbitant fee under a centralized financial authority with Fiat which government controls and regulate, today, we are all enjoying the relevance of Bitcoin ever since inception, because it makes cross border transaction more cheaper than ever at every affordability for us all, you don't have to go through the conventional process of making payments through a central authority before enjoying swift transaction.

What could have been the cost if such an amount were to be sent in Fiat?

For crypto users, fees often arise in a different context. For instance, if you use services like mobile wallets (e.g., Trust) or exchanges (e.g., Binance), the transaction fees might come as a bit of a surprise.

In reality, you pay a "fee" when converting crypto into fiat currency, and if you use mixers to maintain your privacy, that cost increases even further. So, it is not entirely straightforward. In short, crypto "fees" are often "hidden" or distributed across other areas.

[crwth]

Well, we have to understand that it depends on the UTXO.

For example, if you have 1 input of 500 BTC compared to 1000 inputs, this would be more expensive. It is a lower fee due to that consolidation.

We will only know if it's a low fee once it's confirmed, so there should be some waiting time depending on the fee you provide.

[Oasisman]

What could have been the cost if such an amount were to be sent in Fiat?

We have to understand that transfering this kind of amount through Bitcoin doesn't only gives us cheaper fees, but also total convenience (depending on which country you made the transfer).
A cross border transfer of such massive amount typically cannot be processed through standard banking transactions, so there's gonna be tons of hassle before the money gets transferred successfully.
Also, the total cost of transfer does not only end on bank charges, sometimes they tax it, especially if it involves business.
Transaction speed may even take upto 5 business days, so I'd rather put the lowest fee (1sat/vB) on a Bitcoin transfer and wait 24-48 hrs of confirmation during a severe network congestion.

[SamReomo]

I came across a Bitcoin transaction fee of $0.12 as the cost for sending approximately 500 Bitcoins. This sounds amazing, strange, or interesting, but you don't have to doubt it because everything is possible with the Bitcoin network.

The best thing about Bitcoin network is that it doesn't matter that whether you're sending 0.1 Bitcoin, 1 Bitcoin or 500 Bitcoin, you'll pay the same fee for all of those if they are sent from one input to one output.

If you're sending 1 Bitcoin from a single input to a single output address then you'll pay very low fee for it, but it's always preferred to increase the fee to high priority for high value transactions. It depends on data size if it's not huge then a user has to pay less fess but if it's high then the user has to pay high fees.

Someone sending 1 Bitcoin funded by 10 different input UTXO's and one output will pay higher fee than someone sending same 1 Bitcoin funded by single input and one output. Sometimes Bitcoin fees go high when network gets congested, but in normal network conditions, even the transactions of huge amount in Bitcoin can be sent by paying low fees.

[yudi09]

Imagine the tricks some commercial banks do apply to users in making transactions, whereby the make it known to you that the higher the amount you are sending, the higher your transaction fee rate, which is massively advanced corporate extortion, bitcoin has made everything simple, easier and affordable for everyone to perform a transaction without depending on a third party or centralized financial institutions before we could achieve our aim.

Low transaction costs that can be controlled by the sender are a key advantage of the Bitcoin system—something not found in bank transactions.
Bitcoin transactions do not require the sender to answer questions about why they are sending a large amount of money, nor do they involve worrying about raising suspicion from the bank.
You should share the advantages of the Bitcoin transaction system—like the ones you mentioned—with the people around you.

[sunsilk]

In my country, it's also cheap, but it depends on what type of transaction that you are running. Local transfer between local banks are cheaper but if it's an international transfer you will have to pay a higher fee and also need approval.

While the main point is about how affordable and cheap the transfers are. One problem that could be faced in doing transfers in a local and international bank is flagging the transaction and halting it.

I think that all of us are aware of that. While doing these transactions in bitcoin, there's no one that's going to halt it as long as the sender/receiver isn't from the exchange where potential flagging can also be done for certain addresses or from an address that's recently been used for illegal practice and it has been tracked already to follow where the bitcoin is sent.

Bitcoin transaction fee can vary based on the amount of output and input the transactions are going into.

Yes, but as of now that won't be a problem as we get a stable at most times of 1 sat/vB per transaction and occasionally 2-5 sat/vB.

[HajiBagi]

Imagine the tricks some commercial banks do apply to users in making transactions, whereby the make it known to you that the higher the amount you are sending, the higher your transaction fee rate, which is massively advanced corporate extortion, bitcoin has made everything simple, easier and affordable for everyone to perform a transaction without depending on a third party or centralized financial institutions before we could achieve our aim.

Bitcoin transactions will always be the best, and they will never be the same as other bank transactions. Banks are doing their business, and we should all understand that. We also can't do without banks because they are very important to us. Bank transaction fees are too high, which is why we see bitcoin transactions as the best, but we should also remember that banks transactions are the ones we use the most in our countries to pay our bills and other things because not everyone accepts bitcoin payments in some country. There are some people who value fiat currencies more than bitcoin, bitcoin transactions is the best and easiest transaction because the government or anyone has no control over it, i am confident that bitcoin transactions will be the best transactions in the future.

[iBaba]

Imagine the tricks some commercial banks do apply to users in making transactions, whereby the make it known to you that the higher the amount you are sending, the higher your transaction fee rate, which is massively advanced corporate extortion, bitcoin has made everything simple, easier and affordable for everyone to perform a transaction without depending on a third party or centralized financial institutions before we could achieve our aim.

Bitcoin transactions will always be the best, and they will never be the same as other bank transactions. Banks are doing their business, and we should all understand that. We also can't do without banks because they are very important to us. Bank transaction fees are too high, which is why we see bitcoin transactions as the best, but we should also remember that banks transactions are the ones we use the most in our countries to pay our bills and other things because not everyone accepts bitcoin payments in some country. There are some people who value fiat currencies more than bitcoin, bitcoin transactions is the best and easiest transaction because the government or anyone has no control over it, i am confident that bitcoin transactions will be the best transactions in the future.

I agree that bitcoin has those unique advantages especially when it comes to sending money across borders without any bank approval. I personally have used both bank transfer and bitcoin. They were situations where bitcoin is simply more convenient, particularly when the recipient is even in another country or when you want to avoid unnecessary delays

So I don’t think it is just a matter of bitcoin replacing banks completely, in most countries people still rely on on banks for salaries, pay bills and everyday transactions because the infrastructure is already available. As bitcoin adoption continues to grow, I believe more business will begin accepting it directly, but until that time both system will likely continue to serve different needs. The important thing here is that people now have more financial choices than they did before.