Bitcoin SV (BSV) has been in the spotlight since forking off the Bitcoin Cash (BCH) blockchain under the leadership of Craig Wright, Jimmy Nguyen, and Calvin Ayre.
Transactional volume on the network is becoming more dependent on whales as Kevin Rookie of The Spring reports that 86.4 percent of BSV volume comes from the top 100 transactions, June 24, 2019.
Brakes Locked on BSV
The current BSV network appears to be overly dependent on whale activity after details regarding network saturation came to light.
BSV forked off the BCH chain after disagreements over transaction ordering and the proposal of implementing Avalanche on as a part of on chain consensus.
BSV’s goal is to create the infrastructure needed to bring digital currency to corporations. While Bitcoin’s original motive was to create a more inclusive financial system where economic side effects don’t erode purchasing power, BSV is the corporate coin that wants to be regulated.
In doing so, BSV has shunned BTC and BCH as competitors, and competes against the likes of Libra and JPM Coin for market share; the only difference is availability to the public.
Many staunch advocates of decentralization moved from BCH to BSV citing BCH’s automatic checkpoints as a vital factor, but the rest couldn’t deal with the unavoidable dominance that nChain would have over the network. Decentralization of development activities is possibly more important than mining power segregation. nChain controls pretty much all of BSV’s developments, which makes upgrades and improvements to the chain centralized.
The owner of CoinGeek and one of the biggest BSV advocates, Calvin Ayre, has publicly stated he mines BTC and sells it for BSV, acknowledging the lack of profitability in mining on the network and his disregard for using resources to secure the chain he believes is superior.
If the head of CoinGeek isn’t incentivized to mine BSV, who would?
In the last 45 days, BSV shot up nearly 300 percent, currently valued as a $4.5 billion network. While an investment may have been profitable, the idiosyncratic risk of BSV significantly reduces risk-adjusted returns.
One aspect of the price growth was fake rumors in China that the U.S. government recognized Craig Wright as Satoshi, which spread due to the approval of his copyright for the Bitcoin whitepaper.
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