Connect with us

Bitcoin

Bitcoin fees plummet as mempool clears to zero

Published

on



The Bitcoin network mempool shrank to its smallest size since mid-October this week after the network’s hash power soared.

The clear mempool meant that that thousands of stuck transactions pending confirmation were included in recent blocks, leaving very few unconfirmed transactions still outstanding.

The spike in hash power has been attributed to the re-activation of China-based miners who migrated from Sichuan after the end of the province’s rainy season. Bitcoin’s hash rate increased by 42% over a two day period, Nov. 9 and 10.

A smaller mempool is good news for regular Bitcoin users as it reduces competition among fresh transactions to get included in upcoming blocks. Reduced competition in the mempool helps to drive down Bitcoin transaction fees, as miners can potentially include all transactions in the mempool irrespective of their individual fee amounts.

Average Bitcoin transaction fees reached a peak of $13.16 per transaction on Oct. 30, when more than 140,000 transactions were pending in the mempool. The influx of new hash power over the weekend allowed Bitcoin blocks to be found faster than the benchmark speed of 10 minutes per block due to the network’s relatively low mining difficulty. This allowed miners to reduce the number of unconfirmed transactions to zero on Nov. 9.

As of this writing, there were approximately 6,000 transactions in the mempool with a median fee of 3 satoshis per byte (sat/byte) or roughly $0.11. Some users have reported fees as low as 1 sat/byte for transactions that have confirmed within a few hours.

Mining difficulty is expected to increase upon the next adjustment to account for the network’s increased hash power, which means the current respite from high fees may be short lived.

Bitcoin transaction fees had been comparatively low through the second half of 2020. During the last week of October, the price of BTC consolidated above the $13,000 mark for the first time since December 2017 — coinciding with a massive increase in transactions being sent to the mempool and resulting in a backlog of unconfirmed transactions.

With network activity subsiding over the course of a bullish week, Bitcoin users are being encouraged to take advantage of current conditions by performing transactions that may be too expensive to perform with higher fees, such as opening Lightning Network channels and consolidating inputs.





Source link

Bitcoin

El Salvador to airdrop $30 in Bitcoin to every adult citizen

Published

on

By



The president of El Salvador  has announced the government will airdrop $30 worth of Bitcon (BTC) to every adult citizen of the country.

The announcement was welcomed by Bitcoiners, with influencers speculating El Salvador’s government wil need to purchase the required BTC it intends to distribute adding more than $100 million in buying pressure on markets.

Quickly googled estimates of the adult population of El Salvador varied, with onchain analyst Willy Woo tweeting that Bitcoin’s global user base will grow by 2.5% thanks to the influx of 4.5 million Salvadorians.

Others placed the Salvadoran adult population as high as 6.5 million (which is actually the total population), with Yahoo Finance anchor Zack Guzman using the figure for some rough back of the envelope calculations suggesting that $195 million worth of Bitcoin will be airdropped across the country.

Exact figures are hard to find but Statista shows that in 2019 the population aged 15 and above was 4.72M.

However, crypto Twitter’s euphoria may be be slightly premature, as local publication Prensa Latina notes El Salvador’s citizens will only receive the free Bitcoin after downloading the government-issued cryptocurrency wallet application.

The news was announced during a June 25 press conference, with President Bukele stating the government’s “wallet app will even work anywhere with a cell connection, and you won’t have to have a cell plan for the app.”

President Bukele also stated that the country’s much-celebrated Bitcoin law recognizing BTC as legal currency nationwide will come into effect on September 7.

Related: Opposition poses constitutional challenge to El Salvador’s Bitcoin law

El Salvador’s Bitcoin law was passed roughly two weeks ago. While the move has been praised by the global crypto community, the legislation has faced opposition from a minority political party and the World Bank.