User Pays $500,000 in Fee for $200 Bitcoin Transaction
A user accidentally paid an exorbitant fee of nearly 20 bitcoin (equivalent to $500,000) to move just 0.074 bitcoin ($200). This incident has set a record for the highest transaction fee paid in US dollars for a single bitcoin transaction.
The wallet responsible for the payment is known for its extensive use of Bitcoin, having conducted more than 120,000 transactions. According to Casa CTO Jameson Lopp, the transaction appears to be the result of faulty software from an exchange or payment processor.
The transaction occurred on September 10 and consisted of four payments worth around $200, with an additional $1,700 of bitcoin sent to a change address. The transaction fee amounted to 19.89 bitcoin.
Three-Day Holding Period for the Bitcoin
The transaction fee was received by Bitcoin mining pool F2Pool, which mined the block containing the transaction. Chun Wang, co-founder of F2Pool, stated that the 20 bitcoin fee will be held for three days in case the sender wishes to claim it. If unclaimed, the fee will be distributed among F2Pool’s bitcoin miners.
Bitcoin has witnessed several high-value transaction fees in its history, with the highest fee being $134,000 in 2016. In total, there have been 24 Bitcoin transaction fees exceeding $20,000 and 233 transactions with fees surpassing $10,000.
Bitcoin users have the flexibility to choose their transaction fees. If the fee is too low, miners may reject it, while an excessively high fee will likely result in immediate processing. On average, transaction fees are typically around $1 or $2, but they can reach as high as $60 during periods of high network activity.
Hot Take: User Accidentally Pays $500,000 Fee for $200 Bitcoin Transaction
A user’s accidental payment of a $500,000 fee for a $200 bitcoin transaction has set a new record for the highest transaction fee paid in US dollars. The incident highlights the importance of carefulness when conducting cryptocurrency transactions, as a simple error can have significant financial consequences.
While Bitcoin transaction fees are typically low, users have the freedom to choose the amount they wish to pay. However, it is crucial to ensure that the fee is reasonable and proportional to the transaction value to avoid unnecessary losses. This incident serves as a reminder for crypto users to double-check their transaction details and exercise caution to prevent such costly mistakes.
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