Perhaps one of the key reasons many businesses and individuals increasingly use Bitcoin is that it facilitates instantaneous money transfers. Unlike the traditional systems that usually take several hours or days to process cross-border payments, Bitcoin money transfers take just a few minutes. That promotes the free flow of capital globally; ensuring money gets to those who need it promptly. If you are interested in bitcoin trading, visit bitcoin up website.
However, some users have often raised concerns that Bitcoin payments sometimes take longer. While such claims may be valid, they impact doubts about Bitcoin’s credibility. The following article presents facts about how long it takes to send and receive Bitcoin and why some transactions may experience delays.
Bitcoin Confirmation Times
The average confirmation time for a Bitcoin payment on the network is about 10 to 20 minutes. However, the confirmation times may vary due to various reasons. The main factors impacting the confirmation time are total network activity, hash rate, and transaction fees. Generally, network congestion would create a backlog of transactions in the mempool, resulting in delays.
That would prompt users to pay more transaction fees to get their payments processed faster. Such a case occurred in 2021, with the average Bitcoin transaction fees increasing to $59. Bitcoin payments with higher transaction fees present a more attractive reward to miners, giving them precedence over those with lower costs.
The Bitcoin network records and validates all transactions on the blockchain. The transactions that have been registered but not yet added to new blocks are called a mempool. Individual noses store such transactions on the Bitcoin network. Miners clear the mempool periodically by adding the transactions to the blockchain. However, they only approve pending transactions in the mempool after meeting the minimum transaction fee threshold. Thus, transactions that bear low fees often take a bit longer in the mempool before processing and confirmation.
Sometimes, you could wait for hours before completing a Bitcoin transaction on the blockchain. Like driving on a freeway, a high number of Bitcoin transactions will impact network congestion, slowing things down. However, paying a higher transaction fee can be a sure way to reduce the wait times and get your payments processed faster. Incentivize miners when sending Bitcoin so they can include your transaction on the next block, especially during delays.
The Needed Confirmations for a Bitcoin Transaction
Bitcoin transfer and reception are only complete after both parties receive confirmation of the transactions. That means the transactions have been verified and included in a new block. Miners will create another block with that transaction after an average of 10 minutes, adding up to two confirmations.
Some services require only one confirmation, but some exchanges may require three or more transaction confirmations. Bitcoin transactions go through several confirmations on the blockchain before finalization. That’s because users could reverse unconfirmed transactions or try to spend the same tokens twice. Validation only occurs after miners have created a new block.
Bitcoin payments take an average of 10 to 20 minutes to complete. However, transferring more significant amounts of Bitcoin usually require up to six confirmations, talking about one hour to complete. Nevertheless, various online tools such as Statista enable you to estimate the average time it will take to send or receive Bitcoin. Other tools allow you to check the status of your transaction and even get guidance on the transaction fees you should add to reduce the wait times.