Over 220 000 transactions pile up in mempool after a crazy day of BTC exchange rate growth

Total daily trade volume nears $29 billion, the network is clogged with unconfirmed transactions
08 December 2017   1059

Yesterday Bitcoin once again set the all-time records. And not only the price climb, which was truly astonishing, was a concern for traders and casual buyers. The all-time high daily trade volume of $29 billion also was noted on this day. The mainstream media scampered around, trying to keep up to date with the events. Everybody was elated, Bitcoin to the moon, they were saying. Opportunities of huge arbitrage deals were available. But there is a downside to everything. All this rage in the end led to Bitcoin, while pricey to say the least, becoming practically non-transactable.

The current backlog, as of 9:00 UTC 12-08-2017, in the mempool is more than 220000. This caused many users to complain about their transactions sitting unconfirmed for several hours despite fast fees of $7 and more. Transaction fees as high as $32 were logged, but it didn't help much, because the viral success of the largest cryptocurrency swept up not only private users, be they miners or buyers, but also all of the BTC exchanges. It didn't directly impact the blockchain, as all the trading is done on the outside resources, but the demand for fund transfer in and out of exchange platforms was still high enough to clog up the blockchain.

Casual users beware, right now may not be the best time to pay with Bitcoin, because analytics say that the mempool will clear up to manageable level in several hours, at best. Consider your assets to be a very profitable savings account, because in the nearest future it's practically impossible to cash in BTC in any reasonable amount of time.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   75

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.