Unconfirmed Bitcoin Transactions – Money in the Waiting Loop
Unconfirmed Bitcoin transactions are unfortunately part of everyday life for Bitcoin investors. The fact that a Bitcoin transaction remains unconfirmed is particularly annoying when you just wanted to send money quickly to a second batch. Finally, the cryptocurrency Bitcoin is digital money, which is not tactile.
Under the underlying blockchain technology, a transaction must be confirmed by several miners and entered into a block. Only then is it considered complete and only then is the sum visible in the wallet of the recipient.
If the transaction has not yet been entered in a block, so that the digital money is queued, it will be displayed in the wallet of the sender as unconfirmed. The longer this pending status lasts, the more nervous Bitcoin owners become – did the sum get lost somewhere along the way? Is the network so overloaded that the transaction is simply deleted?
Fortunately, both are scenarios that cannot happen simply because the technical prerequisites are missing. To understand why transactions remain unconfirmed, the process within the blockchain technology needs to be considered more closely.
Unconfirmed Bitcoin Transactions – What is the Cause?
With the increasing popularity of Bitcoin, the number of transactions in the blockchain also increases. As a result, costs are higher and Bitcoin owners have to expect longer waiting times. Since the cryptocurrency is decentrally organized, a transaction must be confirmed from multiple locations on the network for it to be completed. This takes time.
If the network is busier than usual, a transaction is most likely not entered in the next block but must “”wait”” for the next block or even the third block. This takes time and leaves a bad feeling because the status only indicates that the transaction is still unconfirmed. Bitcoin owners do not receive any further information and therefore, ask themselves why.
Fortunately, Bitcoins cannot just disappear. Inexperienced users fear that the Bitcoins have been lost. However, this is not technically possible. You are, figuratively speaking, only in a waiting loop, which is due to the current situation of the network. If it is heavily used, the confirmation of the transaction can take from several hours to one or two days.
Not only is the time loss annoying, but also the increased transaction costs are a burden if the network is overloaded. Bitcoin owners should, therefore, consider carefully when to send money and whether it is really necessary.
Unconfirmed Bitcoin Transactions – What Can You Do if They Occur?
Bitcoins can stay whole weeks in the blockchain. There is no reason to panic, however. When a transaction expires at the end, it is returned to the original sender address. Thus, no money is lost. At best, it can be considered a nice way to practice patience.
If you do not want to wait but would rather speed up the transaction, you can do it a second time. This time, however, the station has to expect a higher fee. Transactions with higher fees are brought forward and processed faster. In this case, the first transaction, which was sent for a lower fee, automatically expires. The Bitcoin network rejects them as double spending.
To avoid similar situations in the future, Bitcoin owners can get a wallet that works with dynamic transaction fees. In doing so, the amount of the transaction fee is automatically determined for a defined period of execution.
Since miners process the transactions that are most lucrative first, high-fee transactions are always performed first. Another option would, therefore, be to pay more each time, but not every wallet provider has options to influence the amount of the fee.
Unconfirmed Bitcoin Transactions – Conclusion
Bitcoin transactions take time because the network is organized on a decentralized basis.
A transaction must be confirmed by several miners and entered into the blockchain. The miners prefer high-fee transactions because they are the most lucrative and when the network is heavily used, low-charge transactions may not be confirmed for days at a time.
This causes displeasure or even panic on the part of the transmitter, especially if they are inexperienced or the Bitcoins need to reach the receiver in a timely manner.
If a transaction remains unconfirmed, this does not mean that the money is lost. This is not technically possible. The receiver must be patient. If the receiver wishes to accelerate the transaction, there are several options available.
However, they bring with them higher transaction fees. Therefore, if the network is overloaded, Bitcoin owners should decide whether they really want to make a transaction or not.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.