Recently, the network for Bitcoin became congested due to a backlog of more than 560,000 unconfirmed transactions. Memory utilisation skyrocketed above the 300 MB ceiling and reached a startling 1GB. Even transaction costs increased, at one time exceeding 20 sat/vB. Why is there suddenly so much traffic? Let’s dissect it.
The cause seems to be a condition called “fomo,” or fear of missing out, which is brought on by the minting of sats. The network slowed down as it processed the backlog of transactions brought on by this minting frenzy. But let’s put things in perspective before you press the panic button.
It is crucial to first comprehend that the network of Bitcoin is built to withstand changes in the number of transactions. Although the backlog at the moment is exceptional, it is not disastrous. It won’t take long for the backlog to clear because the network’s core design is capable of handling the scenario.
Second, expensive transaction costs are a passing occurrence. Fees will return to normal when the network clears the backlog. So, you might choose to wait it out if you are not in a hurry to get your transaction completed.
Let’s discuss numbers now. What effect has this occurrence had on the price of Bitcoin? It’s interesting to note that the cost of Bitcoin has mostly held steady. As of this writing, Bitcoin is trading at about $25,700 and has barely changed in the last several hours. Investors aren’t very worried about the network’s viability, as the market appears to have digested the news with little drama.
Although the present backlog of transactions and increase in fees may have some people scratching their heads, it is not a warning sign that the Bitcoin network is about to crash. The system is robust and prepared to deal with such blips.
