Bitcoin fees drop as more hashpower is added
Recently, Bitcoin transaction fees have decreased significantly, whilst unconfirmed transactions are also very low.
This means that the network is running smoothly and efficiently, as it should. However, just a few weeks ago, unconfirmed transactions totaled over 100,000, and fees were exceptionally high.
Right now, unconfirmed transactions are only at 10% of that, meaning the Bitcoin network is operating much, much faster.
But Callum, what's causing this?
One might wonder why the Bitcoin network is suddenly so efficient and cheap. Let me explain.
"Hashpower" means the amount of CPU (computing) power on the Bitcoin network. More hashpower equates to quicker transactions with lower fees.
Something that has gone unnoticed to most, is that a Bitcoin mining pool known as "Antpool", have added quite a lot of hashpower this week. This could be seriously improving the performance of the Bitcoin network overall.
Take a look. Below is a graph of the hashpower last week, see how Antpool has only 18%.
Right, so this means that last week, Antpool owned 18% of the computing power on the Bitcoin network. Cool. Now, have a look at today's chart.
Right now, Antpool has 25% of the hashpower on the Bitcoin network - a 7% increase overall, and a 38% increase relative to their previous hashpower.
This, my friends, could be the reason that the Bitcoin network is working so smoothly (for now), so if you have any coins that you need to move around, do it now!
If you enjoyed this post of found it helpful, please don't forget to upvote, and follow me for more posts :)
Thanks again. This is good analysis that you will not find easily (if at all?) elsewhere about something actually so important. Callum seems to take care of that!
Thanks for your kind words! Many more to come :)
Is it helpful or even appropriate if I resteem some or all of your most helpful posts? Whoops I did it already!?
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STOPThanks for the glimpse behind the scenes of the mining community...it's good to pop the hood and see how this bitcar runs.
♡
Will this also means that if antpool like to have more transaction fees, they would just 'withdraw' the amount of hashpower from the network?