Dear users,

Each bitcoin transaction requires a particular transaction fee to be applied in order for transaction to be processed by the bitcoin network in a timely manner. Unfortunately this is not a trivial task since the required transaction fee amount vary and has to be adjusted dynamically. There are two aspects that has to be taken into consideration when we are processing withdraws and payments (which are essentially bitcoin transactions):

• apply such a transaction fee that the transaction will be confirmed in a timely manner (should be high enough)
• apply as low as possible transaction fee so that users do not spend their valuable bitcoins for overpaying the transaction fee

As you can see there is the high vs. low dilemma and choosing optimal amount is not trivial. Since we’re using BitGo’s Enterprise wallet we are utilizing their integrated algorithm for dynamically applying the optimal amount for transaction fee according to bitcoin network past and present status.

The biggest issue with bitcoin transaction fees is that the bitcoin network is still being randomly spammed by malicious users – either to artificially rise the fees or to “fuel the bitcoin block size debate”. Until the bitcoin block size is increased to a reasonable size and with ongoing bitcoin network spamming attacks we unfortunately can not guarantee that each and every withdraw and payment transaction will be confirmed fast. In some cases there are some “stuck” transactions because the transaction could be created just before spam attack or before network overload – and since the fee algorithm was aligned to the network conditions before overload, the fee might be too low in order to be confirmed fast during the spam attack or other kind of bitcoin blockchain overload.

Therefore we kindly ask you to bear with us – there is not much that we can do about this issue, since it is out of our control. Hopefully the bitcoin block size will be increased soon, which should normalize the issues with the fast-changing bitcoin transaction fee market. Meanwhile we’ll be working hard together with our wallet provider in order to optimize the process of choosing optimal transaction fee even further more.

Thank you for using our service!

Best regards, NiceHash team.