Bitcoin’s Blockchain Quit Creating New Blocks For an Hour, BTC Value Still Climbs
The Bitcoin (BTC) Blockchain Stopped Producing Blocks for 1 Full Hour, Prices Surge 4%
It was an unusual Monday morning for bitcoin. Earlier today, bitcoin prices surged as it was revealed BlackRock was exploring offering cryptocurrency products. Then, a few hours later, the bitcoin blockchain stopped producing blocks for one hour.
As spotted by AMBCrypto.com, there was a 64 minute gap between blocks 532146 and 532147. The time is equal to about 6 blocks failing to be created within the timeframe.
At the same time, the blockchain’s mempools became clogged with 18,000 unconfirmed transactions by around 12PM GMT. The mempool rose from its usual 0.6 MB size all the way up to 10 GB.
Transaction fees also skyrocketed, rising to a high of 1.9 BTC ($12,500) during the peak of the stoppage.
When transaction fees spike, it means transactions with lower miner fees are not confirmed. The transactions with higher miner fees are processed first, with all lower fee transactions pooling on the blockchain’s mempool.
High transaction fees are generally bad for the mass adoption of bitcoin. Bitcoin (BTC) has been criticized for its high transaction fees in the past, making it unrealistic for mass adoption until a scaling solution is found. Incidents like this highlight how dangerous high transaction fees can be.
In any case, the bitcoin blockchain appears to be producing blocks as normal, and the price continues to be high after this morning’s news. The mempool size is dropping and low-fee transactions are clearing out. All is right with the bitcoin community once more.
The BlackRock news, meanwhile, is providing a much-needed lift to crypto markets this morning. BlackRock CEO Larry Fink revealed on Monday that the world’s largest asset management “has assembled a working group to look at blockchain technology and cryptocurrencies.” However, Fink cautioned that he “does not see massive investor demand.”
Nevertheless, any time a big name mentions anything remotely positive about cryptocurrencies, it’s going to be reported across the crypto community.
Fink revealed the news in an interview with Reuters.