The rise in Bitcoin price has been paralleled by a huge increase in demand which has effectively wrecked the Bitcoin trading infrastructure, according to a number of sources. Exchanges like Coinbase have experienced huge slowing, LocalBitcoins has stopped accepting new customer applications, and unconfirmed transactions have skyrocketed.
The price point hit peaks over $18,000, though has since scaled back. Nevertheless, demand continued to increase among exchanges. Coinbase was recently tagged as the #1 most popular app on the iTunes store, per Twitter:
— Dan Hedl (@danheld) December 8, 2017
Nevertheless, while demand was increasing, the power to control the exchange and provide service was slowing. In fact, so many users met with difficulty that it was covered on mainstream media. And the Coinbase Twitter account was awash with tweets of error pages.
But Coinbase wasn’t the only victim. Others fell apart as well. LocalBitcoins even went so far as to stop accepting new clients completely. In a post on the site’s Twitter feed, they made it clear that they were unable to service current clients and could no longer accept new ones.
— LocalBitcoins.com (@LocalBitcoins) December 7, 2017
And it wasn’t just these two sites. All across the Bitcoin landscape, transactions were slow and users were frustrated as the network experienced some of the highest trading volumes of all time. In fact, nearly 300,000 transactions were pending at one point. The LitecoinFoundation was quick to point this out:
There are 223K unconfirmed bitcoin transactions right now.. use Litecoin! pic.twitter.com/ESn3eZYoBn
— Litecoin Foundation (@LTCFoundation) December 8, 2017
Read Full: Demand Wrecks Bitcoin Infrastructure