Does transferring money (for remittances) with Bitcoin, really save you money? This is a question I get asked a lot, so I thought, why not answer it.
The answer is
Now if you look at this saving or this cost that you have with respect to the saving you will do over a traditional remittance, how much is that? Let’s say the Chicago to Manila corridor is operating at 3 percent, so are you going to save a lot. 3 percent of a thousand dollars is you know 30 dollars.
One and a half percent on a thousand dollars is 15 dollars, you say 15 dollars and that may be a big big enough amount for you or not. If you’re typically doing remittances for small amounts, then the savings aren’t that big especially if you’re planning to do it as a business where you are now have to incur compliance costs and the cost of KYC etc. But if you’re doing it on a one-off basis, sending money to your relatives, it may be cheap. It really makes sense when you go into the big numbers, when you go into five thousand dollars or ten thousand dollars and you’re doing that every month. Then yes the savings can be considerable but the exchange fees will also be there. So you will always be paying half a percent or point two five percent or what have you. It may be a better option to go and use Ethereum rather than bitcoin. Some exchanges may offer a lower exchange or transfer transaction fee on ethereum. But typically if you’re gonna use a crypto currency like bitcoin and ethereum and the likes to do cross-border money transfer the saving is marginal, marginal at best.
It comes with the caveat that this question was specifically asked for remittances as an individual user or as an individual business, does it make sense to use bitcoin for purposes of transaction. So.
If you have any more questions please feel free to ask and I’ll be happy to answer them. Thank you.