BitPay will not Process Bitcoin Payments below $100 because of the High Miner Fees
December 25, 2017 9:56 am
BitPay, which is known as one of the largest payment processing platforms for the online merchants, will not be going to process the payments below $100 since the bitcoin transaction fees growing constantly.
No Transactions below $100
From past few months, the size of the bitcoin mempool is increasing constantly more than 100 million bytes and the number of users as well. As a result, the given lack of the adoption of Segregated Witness (SegWit) and the fixed block size of the bitcoin is at 1MB, the average Bitcoin transaction fee has surpassed $30.
According to the Bitcoin Fees, a bitcoin transaction fee prediction which is developed by Earn.com, the fastest transaction fee at the time of reporting is 950 satoshis per byte, or 214,700 satoshis for a median-size transaction, which is equivalent to $28.7.
Recently, BitPay described 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 BitPay team wrote:
“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.”
In the upcoming months, BitPay described that its development team will work to implement the SegWit, which will reduce bitcoin transaction fees by around 40 percent.
The BitPay development team added:
“Segregated Witness reduces the size of bitcoin transactions, allowing for an average bitcoin miner fee reduction of over 40%.”
Anyhow, the timeline of Lightning integration by leading businesses remains unclear, as even SegWit has not been integrated by Blockchain, and BitPay, three of the largest bitcoin businesses in the industry.
“Segwit does not decrease the size of transactions. That’s a myth. Lightning is the method of reducing block sizes (and also fees) that I had in mind.”