Bitcoin value transfers on physical gold are a crucial use case

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This week, an air cargo container containing approximately $15 million worth of gold and valuables was reported missing from Toronto’s Pearson International Airport. Could they have transferred this value with “digital gold” or Bitcoin instead?

According to reports, responsibility for the theft of $15 million cannot yet be assigned to anyone. Notably, the high value crime occurred after the aircraft was unloaded and the cargo transferred to a detention facility.

Peel Regional Police’s Stephen Duivesteyn told CNN the high-value container was illegally removed.

In the meantime, it is unclear whether this was the work of professional thieves or an inside job. Either way, it begs the question: is there an easier and safer way to send value around the world? Many bitcoin advocates will tell you that there is a simple answer to this question.

High Value Bitcoin Transactions

In 2020, one user paid a fee of just $0.26 to move nearly 107,000 Bitcoins worth $670 million at the time. The transaction costs and logistics of trying to complete a transfer of this size through a bank would surely frustrate anyone.

A mysterious crypto wallet also transferred nearly $1 billion worth of Bitcoin to an anonymous wallet in 2021.

This month, a $500 million transaction took place on the Bitcoin blockchain, with the sender paying just over $100 in fees.

$500 million bitcoin transaction

In 2023, the debate over whether Bitcoin could ever surpass the market capitalization of physical gold is still ongoing.

Will Bitcoin Ever Overtake Gold?

The amount of Bitcoin is limited to 21 million. Meanwhile, gold is a natural resource without such restrictions.

However, Bitcoin’s regulatory ambiguity could affect its future value. The market value of BTC today exceeded $540 billion. By comparison, the estimated market capitalization for gold is $13 trillion.

The advantages, however, outweigh the disadvantages. Bitcoin transfers are faster because they don’t need physical transfers like gold. With this, there is no need for third parties in these transactions, such as air freight.

Also, only a professional can determine if a gold bar is genuine. Or to find out if someone replaced it during transport with an inferior quality. On the other hand, Bitcoin verification only requires a few clicks on a public and verifiable network.

Bitcoin’s use of an energy-intensive proof-of-work consensus mechanism has put the master coin in a difficult position over the past decade. Critics worry about the carbon footprint despite the hassle-free transfers. A single Bitcoin transaction, according to Digiconomist, emits 475.50 kgCO2, the carbon footprint of 1,053,881 Visa transactions.

It should be noted that the calculation methods used by Digiconomist have been heavily disputed and are misleading, but it demonstrates that Bitcoin has an environmental impact. It’s interesting how much more expensive it is to move a cargo plane. By one estimate, flights emit 500 grams of carbon dioxide per metric ton of cargo per kilometer. Undoubtedly nearly 20 to 30 times higher than the environmental cost of sea freight.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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