A recent Twitter post by BTCC, one of the world’s leading Bitcoin exchanges, has quite some people worried right now. One of their staff members mentioned how there seemed to be incredibly high transaction volumes on the BTCC platform, which can delay both deposits and withdrawals by several hours. Even though this is no clear indication of the Bitcoin exchange being insolvent by any means, a few users tend to see doom and gloom every time something like this happens.
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BTCC Sorted Their Small Hiccup So Don’t Panic
Two tweets sent out by BTCC earlier today had several Bitcoin community members. Apparently, the major Chinese Bitcoin exchange was dealing with a large influx of transactions, and the queue got backlogged by quite a bit. A precautionary warning was sent out how both deposits and withdrawals could be subject to delays. Or to be more precise, up to three hours worth of delay.
2/ We're clearing the backlog and should be back to normal in a few hours. We apologize, and will keep you posted.
— BTCC (@YourBTCC) February 18, 2016
Even though a large number of transactions did not seem to slow down the blockchain by any means, BTCC was experiencing these issues for an unknown reason. A high transaction volume in Bitcoin should not cause a major backlog on the exchange unless all of their bitcoind clients froze up at the same time.
Regardless of what the issue may have been, the matter got resolved rather quickly, as it only took a few hours to get BTCC back in working order. No further explanation was given as to what has caused the issue, as the total transaction volume on the BTCC exchange has not gone down by much ever since the issues were announced.
Some Bitcoin users had gotten concerned about this debacle and started spreading rumours of how BTCC could end up becoming insolvent. The Mt. Gox debacle is still fresh in the minds of a lot of Bitcoin community members, as their problems started out in a similar fashion. However, the BTCC team is far more competent than the Mt. Gox skeleton staff ever was, and another bankruptcy should – theoretically – not be possible.
People need to stop panicking every time a Bitcoin exchange experiences a minor issue. BTCC never halted all deposits and withdrawals, as they were transparent about the issue itself and communicated it well to users all over the world. That being said, events like these should be avoided in the future, although that might not always be possible.
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