This case may be related to the Chinese Mining Ban, causing a drop in the network’s hashrate and leading to Bitcoin Mempool being almost empty, meaning faster and cheaper transactions.
The Bitcoin Mempool was practically empty this Wednesday 2nd, 2021, after the China Mining ban, in recent weeks. It is noteworthy that this scenario was hardly seen in 2021, the year in which the Bitcoin network was congested most of the time.
Mempool is a space where Bitcoin transactions wait to be confirmed by miners. When it is very full, this indicates that the network is congested, resulting in more expensive fees for those who need to carry out faster transactions.
This is because, while waiting to be committed, a transaction expects to be included in a valid block, but the blocks are limited in size. That is, a transaction can stay in the Mempool for a long time when the network is congested, causing problems for those waiting for transfer confirmation at cheap rates.
On the other hand, when the Mempool empties, it indicates that the Bitcoin network is processing transactions faster.
With about 5,000 transactions awaiting confirmation on Wednesday, the Bitcoin network shows an interesting speed for those who intend to trade values today.
In practice, why is it important to note whether the Bitcoin Mempool is empty or not?
Bitcoin’s network is decentralized, thus maintaining its security and transfer validation by the miners. As there are fewer transactions stopped on the network, a person who wants to use Bitcoin as a means of payment can process amounts quickly and paying fewer fees.
Another important example to observe if the Bitcoin Mempool is empty is when a person has several addresses and wants to consolidate their balances, which is an opportunity for this action.
The drop in Mempool comes just days after China put pressure on mining activity. With the departure of some miners from the space, the difficulty of mine Bitcoin dropped, which may have attracted new participants to the activity.
Another measure that has fallen is miners’ profit from network fees, which is also the lowest in two months, possibly affected by the drop in congestion on the Bitcoin network.
Since China started to attack the mining activity in the country, which concentrated a large part of miners, the network’s hash has dropped, but it is still far above what has been seen in recent years. This measure is what guarantees the security of the Bitcoin network, that is, the more the better.
Disclaimer: The information expressed in this article are solely those of the author and do not necessarily reflect the views of CryptoDeFinance. Each and every investment and trading move involves high risk. You should always conduct your own research when making a decision in crypto investment. *with information from , cryptoplaza, Bit2me, google,