SegWit: Unconfirmed Transactions Rise With Bitcoin Price Again
It’s that time again: the price of Bitcoin is rising and many coins are moving from one point to another. It’s causing unconfirmed transactions to surge too. Not indeed a bad thing though it only slows down transactions for those who do not set higher fees. But it is a reminder on the need for top crypto platforms to implement SegWit.
The proposed update seeks to fix a range of issues related to Bitcoin e.g. cheaper transactions. Support for SegWit makes transactions take up less space for users to pay less. Top exchanges like Binance and crypto companies like Blockchain.com have been under pressure to implement the update. Blockchain.com has more than 38 mln wallets registered on its platform. Its CEO, Peter Smith, even claims their users made 22% of Bitcoin transactions in a 24-hour period days ago.
Poor form to brag about the amount of a scarce resource you’re consuming when you haven’t even implemented the most basic optimization, SegWit, which you claimed you were ready for 2 years ago.
— Ben Davenport (@bendavenport) May 14, 2019
To some, SegWit will provide succour until second layer payment protocols like Lightning Network (LN) mature. But some LN wallets want users to open a channel with about 300,000 sats which could adjust later. Approximately, users may pay up to $8 or more to open a channel on wallets like Éclair, BLW and others on Android.
To be clear, the actual cost of opening a channel is the transaction fee. The added fee is just a temporary safety measure as few merchants accept Bitcoin today. The amount is not a cost but still belongs to users who do not cheat. Defaulters will use it to pay penalty charges on transaction that gets broadcast.
Interesting views on price rise
Here’s to what to watch out for at this time of a Bitcoin price rise. It comes as the top cryptocurrency faces some market challenges together. Bitcoin’s volume, price and dominance are up at the same time. This is important for many reasons.
The uniform push is a strong monetary incentive for traders to sell and abandon altcoins – at least until it gets stable. It strengthens confidence in the space following the year-long bearish market. Yet, it continues to struggle with maintaining a clear cross over the $8,000 mark for the first time in nine months. Bitcoin saw a 10% correction after a slow growth over $8000 in the last few weeks. As at the time of writing, it’s already setting sail again, pointing to a strong consolidation.
Its dominance level on the entire crypto market is fluctuating between the 50% and 60% range. It hasn’t been lower in a while. Until January 2017, the least Bitcoin’s dominance reached according to Coinmarketcap is 70%. The launch of more altcoins may be having a toll on the ecosystem but Bitcoin seems prepared to get its market share back. The market would either get bigger or more altcoins squeezed out.
Last, it seemingly wants to change the narrative of the drop that has befell its market value in May/June for the past two years. Bitcoin seems to be facing it head-on this year’s May/June and it is likely to get even better going by news expected in coming weeks.