As reported by Bitcoinist on Thursday, 20 September 2018 signifies the importance of the cryptocurrencies in the future. Bank of America charging clients 6000 times more fees than Bitcoin thus destroying the dilemma of the bitcoin critics claiming Cryptocurrency is too expensive to use for the transactions. Data from Bank of America (BoA) shows traditional fiat transfers cost 6000 times as much.
BoA along with other domestic US Institutions, makes use of Federal Reserve’s money transfer network FedWire, which charges them a maximum of 83 cents to process a payment.
In accordance to the public figures however, BoA charges customer themselves upto $45 for the same service.
Institutions like FedWire where the service varies with the volume of the transfer being made and whether it qualifies for the “Incentive” fees, described as “transfers that exceeds 60% of the customer’s histeric benchmark volume.”
Considering this information the fees payable by the banks can be as low as $0.032 for an incentive transfer worth over $90,000.
BoA charges $35 for the same as reported by Bitcoinist. Do the math, the profit margin is 87.2 percent. If we consider this values and add it to the Foreign Transfers happening the imperfect exchange rates amplifies the pain to the customer or in the simple terms, the customer have to pay more from their pocket. Cyptocritics still considers that cryptocurrency is not worth for doing the exchanges then its time for them to think again.
The recommended Bitcoin fee from Earn.com – which would deliver the quickest settlement relative to the fee paid was 8 satoshis per byte on September 19 as reported by Bitcoinist. For starters this is equavilent to the amount 75 cents for the Exchange of $90,000 with bitcoin.
Lets compare specifically for Bitcoin.
$90k Transfer: $45 with A Bank, 75 cents with bitcoin.
Cryptocurrency users certainly knows what assets actually mean. People may certainly compare about 75 cents with Bitcoin as well, the question still lies, how cheaper can it get? There are still many evolving coins which gives the idea of what they think of their clients assets and how important they are to the clients.
Democratised Capitalism: where customers and clients having the huge codomain of people will hold their assets independently and transparently will be the future of the financial world, the world is still waiting for such an opportunity. The conservative identity of the Banks and the middlemen never cease an opportunity to haemorrhage the money out of their customers.
What do you think about Bank vs Cryptocurrencies? Do let us know in the comments below.
Source : bitcoinist.com
Author :Wilma Woo
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