Fat fingers? Bitcoin (
BTC

) the user spent over $200 on the transaction, paying an astronomical fee.

In the transaction that entered bitcoin block 760,077, the user paid 1,136,000 satoshis (0.0136 BTC or $220.52) to transfer 3.8 BTC ($63,000). This extraordinarily high fee is 1,000 times the normal Bitcoin transaction fee, as at block height 760,077 the average transaction fee was approximately $0.20.

Twitter user Bitcoin QnA was the first to spot the unusual transaction, asking “That?” A bitcoin educator told Cointelegraph that “at the end of the day, we’ll never know [why they paid so much], but there are several possible answers.” QnA listed the following:

“one. Using a wallet with terrible commission estimates 2. The user makes a typo when entering the commission rate manually 3. Exchange processes rush payouts. They often overpay, but never that much!”
Finally, QnA told Cointelegraph that it’s possible the user didn’t do their homework and the error could be explained by “the user not understanding how miner fees work (unlikely given the amounts shown in the transaction in question).”

Visual block 760.077. Source: mempool.space
Transaction fees on the underlying Bitcoin chain range from pennies to hundreds of dollars, depending on the level of congestion in the Bitcoin memory pool or “mempool” as well as the size of the transactions. The transaction fee is priced in satoshi per data unit, abbreviated sats/vByte.

The rate/vByte rate is multiplied by the size of the completed transaction to get the total commission you pay. Generally speaking, the more money (or data) sent, the higher the transaction fee, although several other factors come into play.

If the user is in a hurry, they can pay a higher fee per sat/vbyte to almost guarantee that the miners will include their transaction in the next confirmed block. The cost of this luxury is a higher collection rate. The lowest fee is 1 sat/vByte; higher fees are generally considered to be something more than 7 rates/vByte. For this fat-fingered bitcoiner, they paid a whopping 8,042 SAT/byte, or 1,136,000 SAT.

This is more than 1,000 times the normal fee. The average transaction fee for block 760,077 was ~8 SAT/VB or $0.22.

Related: Bitcoin Average Transaction Fee Drops Below $1 As Network Recovers

Upon further investigation, the same wallet was involved in another bitcoin transaction 40 minutes prior, which also paid an exorbitant fee. The wallet transferred 4.28 BTC ($83,000) for 564,096 Satoshi or (0.056 BTC or $109). For the pleasure, the miners received a stake of 4,022 SAT / WB, adding a payout to block 760,073.

Due to the pseudonymity of the Bitcoin blockchain, it is not clear why the user paid such a high transaction fee. It is also unclear why they repeated the same action four quarters later. As a final suggestion, QnA joked that it could be “a rich bitcoiner doing this to bend (unlikely)”.

Source: CoinTelegraph

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