Recently, Bitcoin (BTC) payouts were disabled on Honeygain. Although it may have caused some inconvenience, upon further research and testing, the benefits of this action outweighed the losses.
The root cause of this decision lies within the BTC blockchain itself. For quite a while now, the blockchain has been overloaded with massive amounts of transactions that are happening daily. Since the blockchain is rather slow to process them, most of these movements take a long time to be completed. Since the issue itself is global, Honeygain is not an exception.
The BTC payouts on our end were being done manually, and often times when attempting to send out the required sum to you, we had to make a few attempts for it to go through. This, coupled with an already clogged blockchain, increased the transferring times dramatically, and the waiting time for BTC payouts was no longer ‘up to a week’. Also, since the cryptocurrency market is very volatile, a lot of price changes could have happened during this timeframe, and the final payout sum that you received could have been very different, causing further disappointment.
As noted, since the BTC payouts were done manually, one by one, this further increased the waiting time for the payout to reach your wallet, causing frustration and inconvenience. The simple reason why these payouts were being done manually is the fact that there is no automation solution available to handle the number of payout requests that we receive, and the relatively small sums of the payouts themselves.
Simply put, there are solutions available for smaller quantities of transactions that are bigger in monetary value, but there are no viable solutions available for our case – large quantities of transactions that are small in monetary value.
There is a possibility to prioritize transactions on the BTC blockchain, however, this comes together with large transaction fees that would gravely affect the final payout sum that you receive. And even with this in mind, processing times would decrease just barely, whereas the cost of transactions themselves would increase noticeably.
However, with the shutdown of BTC payouts, the opportunity to pay out using crypto is not fully out of the picture. By choosing the JumpToken payout method, you would not need to pay any fees whatsoever and the transactions themselves would be made almost instantly, as opposed to paying a transaction fee for BTC payouts and having incredibly long waiting times.
All in all, the global issue regarding the clogged blockchain, lack of automation solutions, and incredibly long waiting times for Bitcoin payouts to reach your wallet were the key points in making the decision to shut down BTC payouts. It was more trouble and frustration than being worth it, both for us, the Honeygain team, and you – our users.