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Bitcoin Mempool runs almost empty after the Chinese mining ban

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.

In recent weeks, the Bitcoin Mempool was practically empty this Wednesday, 2nd, 2021, after the China Mining ban. It is noteworthy that this scenario was hardly seen in 2021 when 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 complete, this indicates that the network is congested, resulting in more expensive fees for those who need to carry out faster transactions.

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.

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Bitcoin Mempool after china ban
Empty Mempool / mempool.space

On the other hand, when the Mempool empties, the Bitcoin network is processing transactions faster.

With about 5,000 transactions awaiting confirmation on Wednesday, the Bitcoin network shows an impressive speed for those who intend to trade values ​​today.

image 13 Bitcoin Mempool runs almost empty after the Chinese mining ban
Fewer Bitcoin Mempool Transactions in Last 60 Days/ Blockchain.com

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 fewer transactions are stopped on the web, a person who wants to use Bitcoin as a means of payment can process amounts quickly and pay more periodic fees.

Another vital 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 mining Bitcoin dropped, which may have attracted new participants to the activity.

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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.

image 14 Bitcoin Mempool runs almost empty after the Chinese mining ban
Transaction fees received by miners are at the lowest level in the last two months / 
Blockchain.com

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 guarantees the security of the Bitcoin network; that is, the more, the better.


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Disclaimer:

The information expressed in this article is solely those of the author and do not necessarily reflect the vies 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.
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Bruno Marques

Hi! I am the CEO/Founder of Crypto DeFinance, and I am an Enthusiast crypto investor. I started this project so we can provide you with carefully curated news. If you like us and our news, share the posts and comment. Your visit and interaction is very important to us.
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