Bitcoin price has been on a sliding spree over the last couple of days from a high of $4,500 down to $3,933 at the time of this writing.
This decline in bitcoin price has brought a substantial increase in trading volumes and that’s obvious considering that new investors are trying to get hold of bitcoin at lower prices while those already hoarding impressive amounts, trying to book some profit before a major slide.
One of the reasons behind the decline could possibly that more and more miners are moving to Bitcoin Cash – though not completely, but by devoting increasing amount of their infrastructure to mining BCH as the profitability has increased substantially. The hashrate for Bitcoin Core has significantly fallen with blocks now becoming sporadic with reports indicating just one or two blocks being found in one hour rather than the usual six.
The decrease in number of blocks being found has led to considerable congestion and at one time the transaction queue rose to some 80MB. At the time of this writing it was hovering at around 35MB, with nearly 50,000 transactions waiting to move some 116,000 btc, worth around half a billion.
Because of this increased congestion there are significant delays as Bitcoin Core users now have to wait for a confirmation. Which for some may take considerable time as blocks are sometime as rare as 1 per hour. This increase has led to increase in fees which have risen to $3.50 for a very simple 226 bytes transaction. Many are double that size, at around 400 bytes, so fees of $5 or even $6 for a Bitcoin Core transaction may now become somewhat common.