BitPay Will Cease Processing Bitcoin Payments Below $100 Due to High Miner Fees

One of the largest Bitcoin payment platforms, BitPay, will no longer process payments below $100 due to rapidly rising bitcoin transaction fees. Many of you may be unfamiliar with something known as the “Mempool”, but when a Bitcoin transaction is transmitted to the network it first gets verified by all of the Bitcoin nodes available. When it is successfully verified, it sits inside the  Memory Pool “Mempool” and patiently awaits until a miner picks it up to include it in the next block. Think of the Mempool as the node’s holding area for all the pending transactions.

As Bitcoin has become more popular, the size of the Bitcoin mempool has grown to more than 100 million bytes. As a direct result, given the lack of adoption of Segregated Witness or “SegWit” and the now fixed size of block size of Bitcoin at 1MB, the average Bitcoin transaction fee has passed $30.  

Thus, BitPay revealed in an official statement that the company will not be able to process bitcoin payments below $100, as doing so would result in a fee of nearly 30 percent of the actual amount of the transaction.  

“The Bitcoin network has been seeing record transaction volume in the last few weeks. This growth has also led to record network congestion and record-high bitcoin miner fees. Bitcoin miner fees are now more than $30 per transaction on average. To protect purchasers and to continue to offer service for Bitcoin payments, we are now requiring a new invoice minimum payment amount of $100 on all BitPay invoices.”

 

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