The bitcoin mempool is currently at the lowest point in a while, which means that transactions are not backed up or failing to go through in short periods of time. While fees are still high as wallets and other sites still use algorithms to pay high fees, people are left wondering why the number of transactions has dropped. Many are claiming foul play while others are claiming movement to other cryptocurrencies, but one can only speculate as there is no real way to tell.
First lets look at the claim of foul play. Many believe that people who were running spamming campaigns in the past are stopping them in lieu of the user activated soft fork and bitmain hard fork announcements coming to a head in the beginning of August. The idea is that they aren’t going to waste money spamming the network because it seems like no matter what, the debate is going to go one way or the other come August.
While we have seen the mempool go through periods of what many would categorize as spam, there really is no such thing as a spam transaction. Spam transactions are transactions that are low amounts moved around many times and quickly to bloat the mempool, but they pay the needed fee to be included in the block. So in the eyes of many people, if you are paying for the fees to send a transaction, no matter the size, it isn’t spam. I sort of agree with this because it is what would happen in a real world centralized system as well.
The other argument is that people are moving to other blockchains and not using bitcoin as much because of the large fees, which would make some sense, but I don’t see that as the whole reality personally. With the amount the mempool dropped, you would have had many people on a large scale leave bitcoin, which nothing suggests that happened. In my opinion the moment of people speculating and trying to buy bitcoin at rapid rates is slowing so we don’t have many of the speculative transactions. The mempool always shoots up in times when the bitcoin price is going up and now that it has seen relative stability and people who wanted to buy in are in, things are slowing down.
I think overall the reason for the mempool drop is probably a mixture of both people lowering the amount of transaction spamming and also speculators moving to different coins. We see litecoin soaring this week which has caused a large amount of volume there and a rise to their mempool as well. So these things are not completely uncommon in times where things are calm. The most important thing right now is for wallets to use algorithms that can more accurately estimate fees so they can drop when we are in times like this, or else they will continue to build upon eachother. Wallets are okay at estimating fees when the fee goes up but not that great at estimating them when the mempool isn’t full. Hopefully this is something they fix in the future.
Only one sample point, but I wanted to get some steem and zcash out of my local exchange, coinspot. But they don't allow you to withdraw those two currencies yet. So I had to convert them to a supported currency.
I could have converted them to Bitcoin to get them out, but litecoin was also supported and much cheaper, so I did that instead, then used shapeshift to get them back into their intended currencies and stored off the exchange.
After losing 4 Bitcoin to a rogue exchange a few years ago. I learned my lesson.
Anyway, one less transaction for Bitcoin because another currency did the job better and cheaper.
Great news for Bitcoin. I hope that transaction fees will be getting lower as the time passes by. Wonder how will this all will look like when EOS gets into the story. Eth and BTC are going to have a hard time beating EOS no fees and one millisecond transactions.
Don't get paid fees miners do. There are proposals to increase the block size but 52% of miners want no change. 23% signal segwit, 16% signal BU. So a block increase is there. But the system is working.
What does this mean?, BTC transactions are going faster?, people is making less transactions?
This means that transactions that got stuck (no miner picking it up for processing) are slowly being picked up and processed now. So payments are increasingly being processed orderly.
The reason for less transactions on the Bitcoin network could be anything.
So if i make a transaction now, it should be faster right?
No, it means that the transaction has less chance of getting 'stuck'. If the payment fee is set too low, miners may chose not to process the payment.
As a general remark, fees should lower somewhat because of this development.
There is yet another reason for the mempool drop: Because of the high fees some free faucet sites and some gambling sites have raised the minimum withdrawal limit. This will have significantly reduced the high number of small amount withdrawals from these sites.
One thing I have totally noticed, is how easy it is now to exchange to other Cryptos within your wallet-s. This seems to open up a lot of doors for greater opportunities, especially now with all the new Tech regarding the blockain.Peace.
Made a bitcoin transaction once and paid $10 in fees. Don't want to use Bitcoin again until those fees get back to normal.
It's probably something to do with how slow BTC transactions are getting as well.
Thank you for the info is really very interesting. Good news for the Bitcoin! Have a great day
interesting post
thanks for sharing
That mean that this CryptoCurrency is non-stable air no value based currency. And BitCoin who already emptied pockets of the planet by huge crash of it's value on the market is doing it again obviously, where the blockchain will probably be announced for "restart after technical failure or a bug or a glitch" after all money is stashed away safely to other currencies.
Same as minified SteemIt version with "new hard fork and limits to 10 votes" or still hidden agenda but probably "if you buy steem power your votes are stronger" :) Pre-planned chaos, God like a fucking "Blacklist"
i tend to prefer transferring in doge or rdd, as those are both fast and cheap.
litecoin transfers are also very fast.
transferring bitcoins on the other hand often takes like forever...
Is that for real... 😀
very interesting
Well i didnt know that
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Thanks for this very informative post. I am following you for more.
I am still new here and I am having an information overload :0
Please be so kind as to read my post about bitcoin and give me your input?
https://steemit.com/bitcoin/@rbfromsa/to-bitcoin-or-not-to-bitcoin
Any advice would be most welcome...and perhaps an upvote :)
Thank you very much :)
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