A financial advisor reportedly paid $10 to the bank for completing more than six withdrawals from his savings account before later admitting that using Bitcoin (BTC) for the same purpose could have been less expensive. Pat Chirchirillo is a financial advisor at McAdam Financial, a Philadelphia-based startup.
Bitcoin (BTC) Price Today – BTC / USD
Chirchirillo has reportedly found a 3,233% different in the cost of making bank withdrawals and Bitcoin (BTC). From the look of things, the financial professional overreached his withdrawal limits for the day (as per a Federal rule known as the Regulation D). Regulation D limits saving account withdrawals by one month. Under this legislation, a result, Chirchirillo’s bank, which is The Bank of America, charged him $10 to make sure that the financial professional uses his bank savings account for savings alone.
However, Chirchirillo decided to use the opportunity to make a comparison between the banking system and digital currencies like Bitcoin (BTC). He had this to say regarding the matter. Taking to Twitter, the financial professional said:
“The Bank of America just charged me $10 because I completed six transfers this month. Six transfers with cryptocurrency would cost about $0.30. That is about 3,233% less expensive than the same number of transactions in banks.”
The Comparison Between Regulation D and Crypto Protocols
The Regulation D is a legislation designed by the federal government to make sure that people or bankers practice savings more than spending. Regulation D is a protocol that also ensures that banks have the proper sum of currency reserves. The law only applies to people who have savings accounts and excuses the need to check account holders. Like always, users who break this legislation will land a penalty/fee on their savings account.
In comparison with a common cryptocurrency protocol like what Bitcoin (BTC) offers doesn’t cater to Federal securities laws. Its purpose is to settle and keep record payments via a decentralized network. Using a native token whether it is Bitcoin (BTC), Ethereum (ETH), or XRP. In this process, the transactions are based on a peer-to-peer model. For every settlement on a crypto network, users can voluntarily add a rate for miners to hasten their transaction confirmation times.
Additionally, in crypto networks, each transaction includes multiple inputs, which determines how much resources would be required to get verification. For example, sending 1 BTC which has four inputs typical requires more in fees than sending just 1 BTC which includes only one input.
75 BTC Transactions in $10
Cryptocurrencies are actually much more accessible than traditional banks. By means of a Bitcoin (BTC) network, it would take Chirchirillo 75 transactions typically to pay the $10 fee. But for regular banks, it just took six transactions.
Banks are considered more expensive. Besides, it is a sad situation when you realize that more than 1.7 billion people have no access to the essential financial services. The Financial Clinic is a business coaching nonprofit organization. It reportedly recommended that its customers rely on alternative payments mechanisms than traditional banks. Now, in 2019, a financial professional sent people to crypto instead.
Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.