I have been using bitcoin for a few years, but recently I got into a problem I didn’t know excisted. I use a Blockchain.info wallet and I have just setup a business that handles very many small transactions via CoinPayments as I use as the payment gateway on my site.
Now, I opened the busines and payments started to flood in and everything looked nice.
However when I was going to spend money from my wallet I got a message I never seen before :
Please consoidate your funds!
Now what has happened is that it is very hard to send any amount above 0.1 btc from my blockchain wallet. It takes forever to send and transaction fees are ridiculous.
I never see this problem discussed anywhere, but I guess I am not the only one that has encountered it. It must be every business doing high volume low payments.
So now I ask for any advice on how to handle this problem.
Hey Rune, nice to meet you.
The reason the fees are so high is due to high volume of transactions and the fact that Bitcoin can only handle so many transactions simultaneously (at the moment). This means that small transactions that don’t have a lot of transaction fees attached to them will have a hard time going through (more on that here).
I’m not sure what the please consolidate your funds error means but I assume that you have many different addresses and perhaps it would be better to consolidate them all to one address. However I’m not sure why this would be an issue from Blockchain.info’s side.
Bottom line – this is not the best time to send out a lot of micro payments as the network is getting pretty expensive. There are ways to solve this but they require some technical knowledge about using multiple recipients in a transaction and I don’t really know how to do that.
I suggest asking around BitcoinTalk.org as well – I’m sure there are some people with the same issue.