Oops! Bitcoin User Accidentally Pays Whopping $3M In Transaction Fee

In an unprecedented event, a Bitcoin BTC/USD sender has reportedly paid a staggering $3 million in transaction fees.

What Happened: Decrypt reported that as per the blockchain data gathered by mempool.space, the sender, whose identity remains unknown, intended to transfer 139.42 BTC, approximately worth $5.1 million. However, 83.64 BTC was deducted as transaction fees, leaving the recipient with just 55.77 BTC, valued at around $2 million.

The size of this transaction fee suggests it may have been an error. Bitcoin transactions can be costly, especially during busy periods on the network, but the fees are not expected to surpass the amount being transferred.

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Blockchain data reveals that AntPool, a leading Bitcoin miner, processed this transaction in block 818087. The average transaction cost on the Bitcoin network is currently $10.51, according to Bitinfocharts.

This is not an isolated case of a Bitcoin transaction mishap. In September, Paxos, a crypto firm, paid a $500,000 fee to process a $2,000 transaction. The Bitcoin miner, F2Pool, later agreed to refund the overpayment.

Why It Matters:: Bitcoin transaction fees have been on the rise this month, fueled by the growing excitement around Bitcoin Ordinals, digital assets inscribed on a satoshi, the smallest denomination of Bitcoin. This increased activity on the network has led to higher transaction costs.

Bitcoin users have the option to choose lower transaction fees, but this could potentially delay the transaction as miners tend to prioritize transactions that are more profitable. If the fee is too low, there’s a risk that miners might completely ignore the transaction.

Image via Shutterstock

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