Bitcoin Forum

I've noticed that whenever BTC gets near to $3000, transaction costs go up and payments start getting stuck. The next day it seems to crash down again. Is this a coincidence?

Yesterday we hit $3,000 per coin in Bitfinex. There wasn't much delay in the transactions at that point of time. The total number of unconfirmed transactions were around 50,000, but it was much better than the situation we had a few days back. And I don't think that the recent correction was caused as a result of the high transaction fee.

 Transaction delays does make a person want to sell or purchase Bitcoin though with Bitcoin transactions having a negative impact on the price, the price of bitcoin will only affect the price short-term. There is a general view that Bitcoin will have a very expensive price in the near future and the cost for the transactions are nothing compared to it right now.

I don't think it's the reason why BTC price drops. If that was true the price wouldn't recover every new day.

Transaction costs increasing could make people hold it more (until the price of transaction decreases), so people will want to buy it, but there won't be many sellers, so the price would increase, because the supply isn't enough for the demand.

Price is decreasing and recovering every new day, I think it's normal and the market is very balanced between supply and demand, it just need to find a common sense to stabilize the price once again like in the past.

first of all learn which board to post, this belongs to speculation board.

secondly learn what a crash is and what a correction accompanied by panic sellers is.
this one is a correction of the current rally from $2000 to $3000 and correction to $2600. and it will always be crazy big when the exchanges are small and newbie panic sellers are there to feed the whales.

also, no it has nothing to do with transaction delays. there is no delay there is only higher fees and investors/traders showed in the past 6 months that they don't care about that at all.

I think it does not largely affect the BTC price, for example some of us are just using btc as an investment and its rare for us to transact large amounts, that's why we are not really affected by these slow transactions but this is a sign that this must be fix, especially when bitcoin is gonna be a world currency. A currency that must be used worldwide must be efficient and worry free in the speed of transactions.

price is dropping due to correction, not stuck transactions. It might get worse when segwit tries to kick in later, but thats another story for another day.

Bitcoin price hasn't crashed. We are in a correction that will end in 4 days (end of 2016 interval).

slow transactions and high fees do not help bitcoin. 

bitcoin cannot be digital gold without being a payment system.  to the extent its a great payment system, it will be extremely valuable.

Yeah, I think they are. The massive transaction delays cause people rethink before they send transactions. Some people have never had their transactions sent. I have seen a huge migration to other cryptocurrencies lately. I blame transaction times. We need a solution for this problem, fast.

This seems to be an misinterpretation. Price increase and decrease is quite common with bitcoin​, now as more transactions have stuck to the network people have made a bridging between the price crash and the transaction fee.

When the price just significantly increasing, the amount of transaction also increases, thus, the blockchain is overloaded and people will set their transaction fee at its peak expecting to be confirmed within few minutes and few next blocks. Therefore, the recommendation fee will also increase, it's a normal thing to happen, but, if you're thinking that it's the factor which makes the bitcoin prices crashing, you're wrong. I think that this delay will be lowering the amount of supply and make the price even go higher. just my 2 cents though.

It is not a coincidence. People are converting their money into ethereum and other altcoins in order to avoid being delayed on the bitcoin blockchain. The bitcoin blockchain now can not maintain a huge number of users and because of that fact, they are finding an optional choice for their property

No, if the market is full aka no more space or the fees are to high people will move their coins to the next fastest cryptocurrency of choice, it explains the altcoin spike effect to an extent and the boost to Ethereum because of the lack of action on BTC's side and our timeline on this issue not being resolved for at least a few more months in one form or another.
Delays scare new and old users especially since it produces uncertainty of when the dang txt will process if the fee was set to low.

No this is not coincidence , The reason is usual and simple to understand . When the price of the but the get rise then it means the demand of the Bitcoin getting rise ,.so due to more transaction the fee for the transaction get increases ( because of the competition to increase in making the transaction confirmation speedly ) .
So here we can say increase in the fee is not a reason to down the price in the Bitcoin , because all that depends upon the demand , if demand will go down then 100% sure that most of the people will stop to make deals and will down the competition to pay high fee .
And also it is seen by us that when the price of the Bitcoin is increasing then price get fluctuate more from exchange to exchange and making the greediness in our mind to make money from trading from exchange to exchange with fast confirmation .

Transaction cost in terms of USD value will really increase because of an obvious reason that bitcoin price is increasing. But in terms of bitcoin value, I can't see that it was costing up too whenever there is a rally. Seems like an average of 100k-200k satoshis. Maybe you noticed that because of the wallet you used?

We can really sees high transaction cost because of massive demand. For me it doesn't matter as long as confirmation time is not taking too much time.

like everyone said its not the transaction delay but its just the correction which make this things happen there's no relation with the transaction its just the people who already thinks that they already gaining a lot that's why they are selling and converting their btc to fiat and the price slowly moving down.

From what i remember the transaction charges were lower than where it was last week because the number of transactions were lower and the transaction charges are determined not by the price of bitcoin,it depends upon the number of transactions at a given time.The correction is simply because it did not have enough strength to breach three thousand dollars.

I think that is the normal transformation of a coin, the value of bitcoin increase steady decline, this shows a stable and stable growth. If a currency is always rising, it can collapse at any time.

the higher fees started earlier this year when price was still around $1000 and the problem persisted until today in the same manner. and ever since the beginning of this year price has been rising upwards and we are ~150% above the price at the beginning of the year.

this means the higher fees issue didn't have that big a effect on bitcoin price and also what you are calling a "crash" is a simple correction of price as others have also mentioned. and we are still in profit compared to couple of months ago!!

transaction delay will make the value shot higher, because people need to pay more which force them to buy more bitcoin, it's a win win for miners and they like the way it is now

so no i think it's the opposite, the limit on the block for the moment will help the value go a bit higher, what you noticed is just a coincidence...

this same thign happened at $2500 when we went again to $2k, the average fee at that time was around the same as now

What I have observed is that some large exchanges like Coinbase crash when we reach new record high prices. When these exchanges come online again, you will see a small spike in transaction volumes. You have to remember that not all transactions goes through the Blockchain, because most trades are done off-chain. It only goes on-chain when you transfer from one Bitcoin address to another. < Out of the exchange and into the exchange >

So yes, it has a small influence in my opinion. ^smile^

It is not a big deal, prices of Bitcoin can be increase or decrease with time. It's not like it can affect its value. Transaction cost increasing could make people hold it till it most increased price. Until it will and them the highest level profit. So people buy Bitcoins and are ready to invest in it or to trade it with time. Transaction cost are nothing as compared to its price now a days.

You are right and I hope there is a discussion about bitcoin unlimited and if it's useful adopt it. Because a lot of my friend's here who gamble with me now pay me and take from me payment as bitcoins and we really love it, but paying high fees and waiting for confirmation hurts really bad.

Please guys find a solution or make a high enough fees that people don't transact those tiny and dust amounts which clog up the blockchain.

Its just normal i think,its not the transactions who pushes up bitcoins price down in fact i think delayed transaction somewhat help in pumping  ithink specially for transaction that is for cashout that is being hold

It has more to do with the attitude of the exchanges. Along with the miners, the exchanges have also become greedy. They increased the withdrawal fees by as much as 1,000% when the minimum mandatory fee for instant conformation shot up. But now the mandatory minimum is back to normal rates, and the exchanges are not ready to decrease their fees.

Or probably the notion that they are in a rush for the money or just agitated to hold a money. So upon some price increase or the btc it is just but normal that the fee also increases. That is just part of the success of for the part of the btc. But for lowly traders just us then there absolutely nothing we could do so we just have to adjust and just appreciate btc and not always hold grudges against it.

I think the fee is adjusting bitcoin transaction on that time as I know there are many transaction happen so there are tons of unconfirmed transaction that must be complete by miner
Maybe if we hold and wait a little longer, the fee will turn into normal

I think so it is,some users got pissed off with this so fucking slow transactions and they ended up just selling at low rate and switching into other altcoins or even stop using cryptocurrencies

which exchange did increase the withdrawal fees by 1000%?!! are you sure you are not making a mathematical mistake while calculating that percentage? all the exchanges i know increased the fees about 2x and to 0.001BTC which is not that bad since the transaction fees are nearly as much. and i think they raised it by that much to be safe and don't have to change it another time if it went up more.

How can you think like this , Instead of negative you should think in positive ways because increase in the fee of the Bitcoin prices results into pay high fee during the transaction and that amount of fee is going for those miners who are mining Bitcoin and spending Thier electricity .
This will surely help to anyone to get earn more with the Bitcoin , and also if everyone will use high fee for the transaction then this will results into buy of bulk Bitcoin amount instead of small , so this results into increase in the price and increase in the demand more .
Moreover the actual reason of increase in the price is the competition , because when demand going on increasing then unlimited numbers of the transaction happened at the same time , and high fee transaction get include in the block fir then rest of them will get kicked in backed blocked and so on .
So why we should blain Bitcoin network for higher fee , and also Thier is factor that transaction fee depends upon the input and output numbers of the transaction  Bitcoin amount .

Good question. Well, I don't think it is affecting the current bitcoin price as I believe that there are many institutional investors entered into the Bitcoin and they booked their profits when Bitcoin touched $3K so transaction delays are not affecting the current price but yes, it is something that is restricting the further growth. There are many businesses out there who are willing to give a try to the bitcoin for their financial fund transfers but since there are the aspects like price volatility and fluctuating transaction fees, they are currently preferring to stay on wait & watch mode and hence it is affecting further growth.

Also when the price is high people become more conservative, in fact I myself am a pro gambler and when the prices are high, I take a pause in gambling or do it very slowly like 10 times lesser than what I normally do because there are two reasons first of all the transaction fees as mentioned and the other is I believe that if I can just hold and not loose my coins that is itself a win for me.

I remember that Bittrex last year was able to offer 0.0002 BTC withdrawals and that seemed quite high to me. Right now as you said the industry standard seems to be somewhere around 0.0008 BTC up to 0.002 BTC. In bittrex's case it was quite a dramatic increase, although it wasn't 10x it was indeed 5x. This alongside with the exploding bitcoin price just doesn't really go well together.

I would argue that transaction fees don't affect traders all that much. If they are transacting tens/hundreds/thousands of bitcoins at a time 0.001 BTC is literally nothing and does not affect their buying power whatsoever. These traders are the people that ultimately decide the price of bitcoin. Although, if there was a decrease in transaction fees, then traders should be more willing to buy in as they see the community being able to actually use the coin for micropayments, making bitcoin more useful in a sense.

Yes it is definitely this is because creating a degree of confidence about the bitcoin will drop, surely the user concerned if the transaction failed so that money will be lost. When the trust decline, surely they will leave a bitcoin.

that's interesting way to think , but you have to admit that the delays mostly makes people get upse and even move immediately to other coins as an alternative , and based on my personal experience once it's happened and i feel comfortable to do it. i would keep repeating the same and slowly feel like i'm rare to use bitcoin right now as i have an alternative , that's what i feel .

Transaction delays does not directly affect bitcoin prices.But it has made many traders to drop their plans of accepting bitcoin as payment.It would affect bitcoin price in a long run.But there is no such potential crypto currency like bitcoin for investors to switch from bitcoin.

we have different opinion. mine is transaction delays and transaction fees are some of the factors that can be consider to have an effect on bitcoin prices. the logic is simple, if the investors or the business is affected with the delay, probably you will look for something that offers the same service with faster transaction and lower fees. maybe the investors switched from bitcoin to other altcoins.

I don't think that the price correction can be explained by rising transaction fees, or at least that alone.

In fact, if it was to be because of a direct consequence of rising transaction fees, then it would have happened a lot time ago. The correction happened around 4-5 months after the original big pump that bumped btc over $1000, and ever since then transaction fees were skyrocketing. Wouldn't make sense for people to dump now just because transaction fees are high.

It is more likely that bitcoin prices have just been in a bubble state as of late. A correction is necessary in anything, if a bubble precedes it. There is nothing in this world that will last forever, bitcoin price booms included. So don't be too surprised when it does happen, and don't get too comfortable when things are all going well.

It could be, this was due to the effects of increasing bitcoin users, if this continues a long and massive, I worry many users a bitcoin redirecting to altcoin and of course it will make the price will drop.

There is possibility that it is, because the transaction delays plus the high fees is a very stressful problem so most of the users now are thinking about transferring from bitcoin to one another to just escape from the problems in bitcoin. If these kind of problems will not resolved anytime soon then the price of bitcoin will just crash to the bottom.

Price isn't so linked with the circumstances IMO, bitcoin price rise with increased demand (and most the buyers know about the delays already, not anything new), The price is based on the buy and sell and with people day trading bitcoin, it's regular for rises and dips to follow,
Regarding why it didn't exceed 3,000 USD yet, I guess because there isn't enough demand yet, nothing more.

Personally I feel the higher is the transaction fees, the lower will be the number of transactions and automatically faster confirmations, isn't it ?
But yeah, you are right when the price is high people spend less bitcoins and they won't want to send a transaction of 2$ with a fee of 5$ so they avoid such transactions unless they make mass payments.

Even i observed the same thing as a general user of bitcoin who is not knowing much technical things about block size and all then we will come to conclusion that price crashing because of transaction delay.

This can only happen when people lose hope for a price increase. Yet there is hope and the price will rise up. If over time the Internet will be a lot of suggestions for earnings bitcoins for unskilled workers it will strengthen the position of bitcoin and expand its popularity. I believe in bitcoin.

I am not sure if the delaying of transactions are one of the reason causing bitcoin prices to drop, but if bitcoin does not solve the block size problem soon, I believe there might be a time when some of the users that are frustrated with the long waiting time for confirmations in the blockchain might be switching to altcoins, and this might cause the value of bitcoin to drop.

I cant really see a thing on where delayed transactions do really have relation on sudden price decrease of bitcoin.We all know that the entire network does really have lots or huge pile of transactions which causes for the delay and it has nothing to do with the price.When reaching up again on $3000 the price goes down because bitcoin holders are securing profits or any other circumstances.Who knows?

To ensure that people stopped using bitcoin you need to have confidence in altcoins. Such people not so much. So transactions in the alternative coins go faster. Besides, compared to bitcoin is very little opportunity to spend altcoins. So I think that in the short term, bitcoin will have no problems.

It's normal. Whenever the Bitcoin price rises, the fees will rise too. It's an domino effect I can say. Last year, the prices is just about 700usd, there are no transaction fee that time, but when bitcoin reached the 1000 usd, they put an a transaction fee (actually it's for the miners).

I doubt there is any correlation between crashing bitcoin prices and slow transactions. I think whenever the price hits $3000, there are enough sell orders placed to bring the price down.

 A few people I know are waiting to sell at $3000, and there are many others like that.

Actually, the network started getting bloated with days delays end of 2016, when it was approaching 1k. And then when it broke the very old 1400, that's when network got continuously fatter and the price just kept rising. If there is any relation, it's the other way round. Bitcoin price increase leads to speculation, leads to more volume to trade, leads to tx delays.

Yes delayed transaction times are causing problems. Bitcoin can't be really big unless there is serious improvement. The public wants very fast and cheaper transactions.

And SegWit is going to fix that......right?

Bitcoin price is based on the forces of demand and supply and when people cannot make their transactions as at when due its only logical to find other means of making the transaction. In the few months back, when a deal is to be struck there is no need for the asking of which currency to use because its by default that bitcoin is the currency of acceptance but today it needs to be agreed whether I am ready to accept bitcoin or not. All this little issues in the long run when put together affects the overall price of bitcoin.

Yes, it is possible but to be honest, I don't think that businesses with a large market share (other than Bitcoin companies) are involved with the Bitcoin for the fund transfer as the main option. The main reason for the price drop is the actions of individual holders. There are institutional investors too but there is no mechanism to produce the accurate data of the users so we have to rely on the assumptions which differ from person to person.

This should have been posted in speculation, but I’ll answer your question anyway
 
I don’t think that is the reason why bitcoin isn’t reaching 3k yet. Transactions fees won’t kill a cryptocurrency. If the transactions fees were high, people would be holding bitcoin since they would not want to play a hefty transaction fee every time they buy something or move bitcoin. Since people would not be selling bitcoin, the supply would have decreased, and the people who would want to buy bitcoin would come to realise that there wouldn’t be as much people selling it due to the high transaction fees. These factors should actually raise the price of bitcoin, not drop it.
 
If the transaction fees are too high for you, just wait for August the first, where segwit will get activated which should in turn lower transaction fees, since the miners won't pay that big of a transaction fee.

We are having scaling agreement and don't worry. At least if that will not be splitting the bitcoin chain and there will be a clone for Bitcoin such as Bitcoin Unlimited coin. That will healthy.
The dump in bitcoin trade caused by the more traders tries to take an opportunity to another place.
But the scaling problem of bitcoin included on the long-term. Just remember it, there will be a scaling solution activation in august. Take your popcorn.  ::)

This is not a coincidence but their are some sellers who are selling their coins as soon as bitcoin reach nearby $3k price and it may be due to transaction getting delay in confirmation and high transaction fees.

This will usually only happen if there is a large amount of movement, for example when the most recent crash happened so many people where selling it was just too much!

When ever the price of bitcoin touches $3000 people will be using that to either trade them or sell them off and so is the reason you are seeing more transactions on those days and it has nothing to do with the crash solely because of the increased transactions,if all the people transacting are selling off their coins then the price comes down,so that is the case.

I never created a link between transaction delays and bitcoin market prices. To me, the market prices are totally speculative not depending real facts.

I guess it is really I also have a lot of transaction in the blockchain that getting stack there almost a week before it confirmed in my bitcoin wallet so but till I don't think that can be a reason but I guess it is just a small percentage in lost of price of bitcoin but still not something to worry about I guess.

As you might have noticed miners are pushing their lucks too much to process and include transactions in blocks as fast as possible then you'll

See block times in less than 10 minutes which ironically increases the difficulty exponentially every time they mine too many blocks in an hour

Which normally they were supposed to mine then every 10 minutes, while the same miners are the ones refusing to activate the yet best

Proposals available which has been known as SegWit, they are using a stall tactic to collect and earn as much money(BTC) in fees as they can

Before others activate the one thing that first will limit their ability to use the boost function if they were using Antminers and second to

Practically limits their control over causing stupid high fees, they don't realize that others are looking up to them while they are looking

And waiting for others, they're not idiots but they act like it.

You're right though you're also wrong. It is pretty easy to notice that there is a bunch of miners that are manipulating the mining process of Bitcoin though there is a group of miners that are really trying to keep up with the competition due to Bitcoins difficulty percentage rising up.

Yes, it's a relatively small amount of bitcoins that is lost.

For example i use the Copay/Bitpay wallet, and it conveniently tells me what percentage of the total transaction size is taken up in fees. If I send more than 0.1 BTC, then right now i only need to pay around 0.5-0.8% of my actual transaction size, meaning that it is still significantly cheaper than Paypal and Skrill(closer to 2% i think).

As the amount transacted increases the amount that miners charge do not increase, because what matters is not size but rather the bytes that a transaction takes up in a block. Therefore, traders and speculators(who are the main players in moving the bitcoin markets atm) don't really worry about bitcoin fees. This is proven by bitcoin going up more than 2x whilst it's having high transaction fees.

Bitcoin has only been near $3000 once, and this was fairly recent. So it's quite an isolated case.

Transaction fee issues have existed long before this pump was even initiated. In fact a major contributor to the transaction fees is the pump itself - when bitcoin transaction fees go up, and bitcoin value goes up, it equates to an exponential growth in transaction fees in fiat terms. There is really no correlation between bitcoin price and bitcoin transaction fees measured in btc.

$3000 is a psychological barrier for traders. It is a round number, much like $1000 and $2000. And this is the reason why we are failing to break it. If we were extremely worried about transaction fees then bitcoin would have never been pumped in the first place.

Acually the transaction delay and the high fees suprisingly making the price of the bitcoin go up even more and the reson for that i think that everyone who owns bitcoin right now is just saving it, which is creating a high demand in the market and with high demand come high prices, and this might go on for quite some time until the whole network gets uptdated to support the massive transactions.

Guess what, the increase of fee caused by the increase of transaction which you can simply make a conclusion from this that when the price just hits $3000, people are in hurry of selling their Bitcoin, they'll pay higher fee than usual expecting their transaction to be arrived very soon which cause the significant increase of the fee, If you're wondering why the price keeps on crashing at this time, it's because of the dump caused by those kinds of people.

not sure why people are putting up with BTC when more coins are better and faster.. if this continues.. BTC will be just another ALT

Transaction delays is because of the too many transactions in the blockchain that can't be processed at the same time, this delays of transactions is not affecting the bitcoin's price. But the fluctuation of the bitcoin's price is the one affecting the transaction fee, the more the bitcoin's price is increasing the more the transaction fee is increasing also, and yeah, in the near future, the transaction fee would be higher more than what it is right now, but it is not that expensive since the bitcoin's price will also increase.

You are right and it is really odd but it started happening before bitcoin was at $3000. For some strange reason the one day all of a sudden everyone's transactions started going through after waiting 10 days. Now I an spend 0.001 and it goes within an hour or so and that for me is fine.


Yes they all got clogged up like a blocked drain.

Yes, I don’t think the transaction confirmations can be the major reason for bitcoin price fall. The transactions may take some more time out of the routine to confirm but it is not such a huge issue which can affect the price of the Bitcoin. Also we select the transaction fee to confirm so it is something not on the bitcoin but on the users end.

Yes I agree, I think that the transaction fees was never the reason for the bitcoin price to fall and yes if it even was then the bitcoin price will have never reached to such a high value. I think many of the people complaining about the transaction price forget about the same if it was in fiat they will have to pay much higher fees as compare to the very low fees of bitcoin.

Who should we blame miners or users? if price going up causes fees to go up as well and makes the transactions stuck then causing the price to go under then maybe it's a good thing? miners could activate SW and stay as a miner after doing so, it's not like if they activate it they get booted out of the mining process, they only need some body to tell them that.