Bitcoin mempool congestion is what is holding back bitcoin's price

in #crypto11 months ago

The mempool has about 238k unconfirmed transactions waiting to be confirmed:

Untitled.jpg
source

The mempool dropped a bit a month ago when Binance temporarily paused bitcoin withdrawals, but it's back up again.

Why does this suppress the price? There are three types of players in the bitcoin space; those who simply speculate on exchanges, those who are buying as a store of value (who transfer coins to their hard wallet as soon as they buy) and those who use bitcoin to move money (e.g. remittances).

Mempool problems are affecting the last group badly. Both the delays in getting transactions confirmed, and the rising fees, make bitcoin unusable.

There is some evidence money is now moving instead through stablecoins (e.g. Tether on the Tron network), and through other crypto with low fees (Bitcoincash, Litecoin, Dash).

It's a shame mempool issues arn't being resolved, especially with the halvening coming up in eight months.