This has recently happened to me and it did happen when I transferred some BTC to Aurora Mine. (In case you don’t feel like reading the entire article about it, that’s a very questionable website that seems more like a scam than anything else). So after I decided to transfer a bit of money to them, I checked out the transaction hash in order to make sure that everything is OK.
My heart skipped a beat when I saw that my entire balance was subject to a transfer, as you can see in the image below:
So, there was one input consumed (by my address), and two outputs created – one to the wallet I wanted to sent the Bitcoin to, and another address that I didn’t know. Also, looking at the top of the screen, the “Amount transacted” was equal to my total BTC balance at the moment.
I freaked out and I thought I was going to die. Then I decided o get logical about this and see what’s happening. It’s not all lost until… well… it is!
So I did some research, asked people and kept an eye on my actual balance in my BTC Wallet. Everything seemed fine. Eventually, the transaction went through and I calmed down: the amount I wanted to send was sent and available in the new walled (on Aurora Mine in this example), while the remaining BTC was still in my original wallet. Bullet dodged!
Just that there was no bullet. It is something that happens every now and then and it’s normal. Hopefully this article will help you stay alive and not go crazy (as I was about to when I saw the two transaction and my entire BTC balance used).
Why does a BTC transaction generate two outputs?
This is the million dollar question! The most logical answer I found to this is something like this:
Your initial BTC balance is like a bill of fiat money. You need to send some coins only, and you have just one bill. As a result, during the transfer, your bill is turned into coins, the amount you want to transfer is sent one way, while the remaining coins comes back to your wallet.
So the second output is MY Wallet’s address, which was automatically created for the new balance (at no extra cost).
It is indeed scary to see your entire balance listed there as the “amount transacted,” but it’s good to know that it’s just the amount you want to send which is actually being sent.
So, there you have it! Now you know why your Bitcoin transaction generated two outputs and that you’re not going to lose your money!